Key Points
- Hackney Council approved a balanced budget for the 2026/27 financial year at its full Council meeting on 4 March 2026.
- The budget addresses rising costs and increasing demand for services through careful financial management and increased government funding.
- Core funding for Hackney will increase by 25% from 2024/25 to 2028/29 due to government investment and funding allocation changes.
- Majority of the budget funds frontline statutory services, including adult and children’s social care, temporary accommodation, and SEND support.
- Key investments include £156m for financially vulnerable residents via housing benefit, crisis support, and allocations; £144m to tackle homelessness; £50m to maintain and improve council homes; £8.85m for community safety; and £23.5m for street cleaning.
- Council Tax to rise by 4.99% from April 2026, remaining among London’s lowest, with up to 90% discounts for low-income households and doubled tax for vacant homes over 12 months.
- Continued investments in libraries, street cleaning, fly-tipping enforcement, building/refurbishing council homes, and transforming Kings Hall Leisure Centre.
- Builds on Strategic Plan achievements (2022-2026): RIBA award-winning council homes, 60% reduction in damp/mould cases, 970+ residents into employment/apprenticeships yearly, 4,000 solar panels on 27 housing blocks cutting bills by 15%, 33 Green Flag Awards for parks.
- Mayor Caroline Woodley described it as a “bold, ambitious and balanced budget” prioritising the vulnerable and investing in Hackney’s vibrancy.
- Earlier proposals discussed financial pressures like social care and temporary accommodation; prior budgets involved £10m from reserves and £25m cuts despite government cash.
- Mayor Woodley defended against austerity claims, emphasising growth in key services and Labour values.
Hackney (East London Times) March 6, 2026 – Hackney Council has approved a bold, ambitious, and balanced budget for the 2026/27 financial year, securing vital services amid rising costs and demand. Councillors unanimously agreed the plan at a full Council meeting on 4 March, focusing on frontline support for the vulnerable while investing in borough improvements. The budget balances the books through prudent management and a 25% core funding boost from the Labour government over 2024/25 to 2028/29.
What Does the Approved Budget Include?
The budget prioritises statutory services, with the bulk allocated to adult and children’s social care, temporary accommodation, and Special Educational Needs and Disabilities (SEND) support. As detailed in the official announcement from Hackney Council News, it commits £156m to support financially vulnerable residents through housing benefit, crisis support, and housing allocations; £144m specifically to tackle homelessness; £8.85m for community safety initiatives; and £23.5m to keep streets clean.
Further, £50m targets maintaining and improving council homes, alongside ongoing projects like building, refurbishing, and buying back properties. Investments extend to libraries, enhanced street cleaning, fly-tipping enforcement, and the transformation of the iconic Kings Hall Leisure Centre. Mayor Caroline Woodley, quoted in Hackney Council News, stated:
“This is a bold, ambitious and balanced budget that prioritises support for residents most in need, and invests in a better Hackney for everyone.”
How Will Council Tax Change?
From April 2026, Council Tax bills will increase by the standard 4.99%, keeping Hackney’s rates among the lowest in London. The council maintains up to 90% discounts for low-income households, as proposed in earlier budget papers. Additionally, it doubles Council Tax for owners of homes vacant for at least 12 months to encourage use and reduce empty properties.
This follows patterns from prior years, including the 2025/26 budget where Cabinet approved a similar 4.99% rise, with 2% ringfenced for adult social care, supplemented by £10m from reserves. As reported in OpenCouncil Network coverage of the 26 February 2025 Council meeting, these measures mitigate pressures from social care and temporary accommodation costs.
What Achievements Does the Budget Build On?
The budget proposals were published alongside Hackney’s Strategic Plan Report, highlighting 2022-2026 successes. Key milestones include building RIBA award-winning council homes, reducing damp and mould cases by 60%, supporting over 970 residents into employment and apprenticeships annually, installing 4,000 solar panels on 27 housing blocks to cut electricity bills by up to 15%, and earning 33 Green Flag Awards—the highest in London for parks and green spaces.
As per Hackney Council News on 22 February 2026, these underpin continued investment in breakfast clubs, lunch clubs for older people, Young Hackney youth clubs, refurbished libraries, leisure centres, cost-of-living help, community safety, and celebrating local creativity. Mayor Woodley remarked:
“We’ve achieved some incredible milestones over the last four years, and this budget is about building on those successes to make our borough even better for everyone.”
What Financial Challenges Did Hackney Face?
Councils nationwide grapple with unprecedented pressures from rising service demands and costs, particularly adult social care, children’s social care, and temporary accommodation. Hackney’s earlier 2025/26 proposals noted drawing £10m from reserves, with investments like £55m for council homes and £135m for temporary accommodation.
Despite a £25m government injection, the council approved matching £25m cuts, including up to £1m from voluntary and community sector grants, as covered ahead of the approval. In a July 2025 East London Times report, Hackney approved £50m savings over three years to close a budget gap, balancing cuts with vital service protection. Trendwire Media on 5 March 2026 echoed the 2026 approval with tax rise and allocations for homelessness and vulnerable support.
How Does Mayor Woodley Defend the Budget?
In an interview with Hackney Citizen on 3 March 2025, Mayor Caroline Woodley rejected austerity labels, insisting:
“If we were looking at austerity, you would not be seeing any growth in terms of our budget. We are investing more in the big three: adult social care, children’s social care, temporary accommodation.”
She highlighted a “landmark” balanced budget, improved care services graded ‘Good’ by the Care Quality Commission, and ambitions like Kings Hall investment despite low borrowing.
Woodley emphasised Labour values of fairness and equality, contrasting Tory state-shrinking with growth focus, and committed to digital transformation for efficiency. Responding to Green co-leader Cllr Zoë Garbett’s call for outrage over service desperation, she urged cross-party bridge-building.
What Opposition Views Were Raised?
At the 26 February 2025 Council meeting, as summarised by OpenCouncil Network, Greens submitted motions opposing the two-child benefit cap—praising MP Diane Abbott’s stance—calling to abolish Right to Buy, and supporting a Plant Based Treaty with plant-based catering pushes in schools and events. Labour countered with a violence against women and girls motion, pledging service reviews and healthy relationship education.
Hackney Citizen reported opposition accusations of austerity, with Woodley apologising after implying Greens exploited vulnerabilities by “jumping on every populist cause.” Earlier Cabinet on 24 February 2025 approved £880,000 for town centre CCTV upgrades and a £10m regeneration grant.
What Broader Context Surrounds the Approval?
Hackney’s stable position stems from years of planning plus government changes, per official releases. The budget meets legal duties while advancing priorities, as councillors confirmed on 4 March. It aligns with prior fiscal strategies addressing gaps, like the £50m savings plan noted by East London Times.
