Rising to the challenges: new Council budget agreed

Efforts to tackle the housing crisis, reverse inequality and lead the fight against climate change in Hackney will continue in spite of the financial challenges affecting councils, the Mayor of Hackney has committed after councillors agreed Hackney Council’s new budget for the year ahead.

The budget, confirmed yesterday (26 February), means the Council will balance the books for the financial year from April 2025 – despite huge financial pressures that have led other councils to seek extra financial support from the government or raise Council Tax far above standard increases.

That has only been possible by Hackney Council making nearly £25m in savings in 2025-26, and taking the unprecedented step of using almost £10m from its reserves to fund services over the next year. The Council will also also receive around £25m more funding from the government than it expected to receive under the previous government.

Council Tax bills will rise by the standard 4.99% from April 2025, remaining among the lowest in London, with discounts of up to 90% available to low income households maintained this year. Owners of second properties will see their Council Tax bills doubled for the first time, after double Council Tax bills were introduced for the owners of any home that has sat empty for at least 12 months in April 2024.

The majority of the Council’s budget is spent on frontline services targeted at those most in need, with a greater proportion of Council funding being directed towards areas such as social care, homelessness and children’s services, where demand for and the cost of supporting residents has increased.

Across the country, councils face big financial challenges. In Hackney, more people rely on our support than ever before, and more of our funds are being used in a small number of areas like social care, support for vulnerable children, and housing for people at risk of homelessness. Using reserves to fund services is not sustainable, and we will need to stabilise our finances in future years.

With budgets stretched, protecting Hackney’s most vulnerable residents remains my priority.  But I still want to go further – by tackling the housing crisis head on, addressing the root causes of poverty and inequality, and continuing to lead the way in the fight against climate change.

That will mean rising to the challenge and doing things differently. We will need to change how we work to reduce costs while improving services, invest now to save money in the long-term, and seek extra funding to deliver on our ambitions. We’ll need to work together, and change together. But by doing so, we can build a fairer, safer, greener and healthier Hackney, for everyone.

Caroline Woodley, Mayor of Hackney