Drivers are set to be refunded after a major authority has been ordered to repay motorists caught by six controversial low traffic neighbourhood schemes ruled unlawful by the High Court.
The south London authority must return money to drivers who were issued fines after judges found the schemes were introduced mainly to raise cash rather than improve road safety or cut pollution.
In a damning judgement, Mr Justice Pepperall said the council had acted for an "improper purpose" when it made the schemes permanent last year.
The case was brought by local resident Karen Lawrence alongside the campaign group Open Our Roads after traffic restrictions were formally approved in March 2024.
Barriers placed on roads, including Albert Road, Dalmally Road and Holmesdale Road, will now be removed. Enforcement cameras have already been switched off.
The court found that the council broke the law by prioritising income from fines over the intended purpose of traffic regulations.
In his ruling, Mr Justice Pepperall said: "Taking the relatively modest benefits of the schemes into account… I am satisfied… that the dominant purpose… was the need to safeguard the revenue raised by enforcement."
He also pointed to comments from the mayor suggesting financial pressures played a key role in keeping the schemes in place.
The LTN saw barriers placed on roads, including Albert Road, Dalmally Road and Holmesdale Road
| PAThe judgment highlighted Croydon's long-running financial crisis. The council effectively declared bankruptcy three times in recent years and issued a Section 114 notice in 2020 after facing a £67million shortfall.
Officials had expected the six LTN schemes to generate a surplus of £10.7million between 2023 and 2027.
Figures obtained through Freedom of Information requests showed just how lucrative the scheme had become. In one month alone, £1.4million in penalties were handed out to drivers.
Motorists were caught by automatic number plate recognition cameras and issued fines of £160, reduced to £80 if paid within two weeks.
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Failure to follow the LTN rules resulted in a £160 fine
| PAUnder the ruling, drivers who paid those fines will now be able to claim their money back. Conservative mayor Jason Perry confirmed the council will not appeal and has scrapped the schemes immediately.
He said the priority is making sure residents can easily reclaim their money, with affected drivers to be contacted directly or able to apply through a new online form.
Mr Perry also sought to distance himself from the decision to introduce the LTNs, saying: "Low Traffic Neighbourhood schemes were introduced in Croydon in May 2020, before I was elected mayor. While I'm mayor, these LTNs will not be returning."
Mr Perry, elected in 2022 as Croydon's first executive mayor, inherited the schemes from the previous Labour administration.
The road restrictions prohibit vehicle access during peak rush hour times | PABut Labour figures have hit back, accusing him of mismanaging the fallout. Opposition leader Stuart King warned the decision could leave taxpayers footing a huge bill.
He said: "This latest financial fiasco by Perry comes on the back of a 'misstatement' of £15million in costs, the loss of a reportedly £22million asset sale, and the need for the highest ever Government bailout to balance his budget."
Mr King added: "It's clearer than ever that residents should call time on Jason Perry's mayoralty."
Campaigners who brought the legal challenge have welcomed the outcome. Open Our Roads said: "Today's judgement confirms that local authorities must act lawfully and for the purposes Parliament intended. Residents deserve transparency and decisions based on evidence, not financial necessity."