Hackney Council's Major Budget Focuses on Housing and Infrastructure
Hackney Council has approved a comprehensive budget for the 2026/27 financial year, with significant allocations for housing maintenance and street repairs, totaling over £200 million and £13.6 million respectively. The budget, passed on Wednesday, March 4, 2026, includes a 4.99% increase in council tax to help fund these essential services. Mayor Caroline Woodley described the budget as a "great cause for hope" for the borough, emphasizing that it was balanced without drawing from reserves.
Financial Pressures and Government Support
Despite facing "serious financial pressures" over the past decade, Hackney Council has benefited from a recent cash injection from central government, boosting its core spending power by 25% over a four-year period until 2029/30. This funding has allowed the council to abandon plans to reduce library opening hours, which would have saved £750,000 annually. However, the borough continues to grapple with rising demand for services like social care and homelessness prevention, leading to £33.8 million in spending cuts for 2026/27 and a need to find an additional £10 million in savings by the end of the decade.
Key Budget Allocations and Council Tax Changes
From April 2026, council tax in Hackney will rise by 4.99%, resulting in Band D properties paying £2,060.30 for the year. Low-income residents will be eligible for discounts of up to 90%, while properties left vacant for over a year will face doubled council tax rates. The budget prioritizes frontline services, including:
- £201 million for managing and maintaining council homes and leasehold properties
- £130 million to support financially vulnerable residents
- £23.5 million on street cleaning and waste collection
- £13.6 million for public highways, cycleways, footpaths, and streetlights, including street tree maintenance
- £8.85 million on community safety
- £7.3 million on Young Hackney services
- £4.4 million for recycling domestic and commercial waste, with extra funds for zero-waste initiatives
- £1.3 million for a Domestic Abuse Intervention Service
Political Drama and Opposition Proposals
The budget meeting was marked by political drama as Councillor Soraya Adejare defected from Labour to the Green Party during the session. Adejare, who was blocked from standing for Labour in the upcoming May elections, criticized the government's funding as "totally unacceptable" and crossed the floor to support the Greens' alternative budget, much to Mayor Woodley's disappointment. Opposition groups proposed amendments, with the Conservatives suggesting a council tax freeze and cuts to damp inspections and highways maintenance, while the Greens advocated for increased community grants, a tourist tax, and frozen waste fees for Ridley Road market traders. Despite these proposals, Labour's majority ensured the budget's passage.
Looking Ahead
Hackney's budget for 2026/27 will take effect on April 1, 2026, with local elections scheduled for Thursday, May 7. The budget reflects the council's commitment to addressing housing and infrastructure needs amid ongoing financial challenges and political shifts.
