In his Autumn Statement document, chancellor George Osborne said the government "will discuss plans for a Growth Zone with the London Borough of Croydon, which will be subject to value for money".
Croydon Council has proposed that the borough be given devolutionary powers including Growth Zone status, allowing all locally generated taxes on new development to be retained by the borough to fund the necessary infrastructure needed for major developments and speed up their delivery.
The council's plans, set out in its prospectus ‘Our Time is Now’, suggests the borough could gain around £100 million over 20 years from stamp duty alone.
The council could then borrow against this income and combine it with other sources to fund further growth as part of the council's proposed regeneration of area, which it hopes could provide 8,359 homes by 2031.
Leader of the council councillor Tony Newman welcomed the chancellor’s announcement.
"For Croydon to be named in the Autumn Statement shows the huge importance of Croydon and the significance that it holds to London and the wider region," he said.