The argument over who is to blame for Croydon's financial problems rumbled on at the town hall as councillors rubber-stamped the budget for the next financial year.

During a debate over council tax - which has been set at a 4.3 per cent increase for 2007/08 - both parties blamed each other for the poor state of the council coffers in the last financial year.

While Labour opposition councillors claimed the low increase was made at the expense of community services, Tory cabinet members defended the "necessary" string of cuts they have made - blaming it on a debt inherited by the previous administration.

Council leader Mike Fisher said: "Not a single member of the opposition has brought forward any proposals at all about how they would balance the budget."

Those living in Band D properties in Croydon can expect to see their annual council tax bills rise by £55.73 after April.

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