Council budget 2024 to 2025

Like all councils, we’re facing severe financial challenges. The long-term lack of government investment in local services means that the amount of money we have to spend this year is £156m (40%) less in real terms than it was in 2010.

Our core funding will increase in line with inflation this year. It includes various grants from the government, as well as income from Council Tax and business rates. However, this increase does not provide nearly enough funding to meet the severe cost and demand pressures in the borough.

Despite the decrease in funding, the cost of providing vital services for Hackney residents has increased. This is particularly due to rising inflation since 2020.

High inflation means that the cost of everything we do is much higher. This applies to big projects like building council homes, as well as everyday costs like heating buildings.

Demand for many services has increased. This is particularly the case for some of the most important and costly services, such as:

• social care
• homelessness
• children’s services

This means we have to direct a greater proportion of our funding towards these services.

The government has provided our funding for the next year on a one-year basis. They will confirm the final amount in February. This short-term, last-minute funding arrangement makes it difficult for us to plan for the longer-term. It also makes it hard to ensure we use our resources as effectively as possible, especially in challenging financial circumstances.

We have overcome a £22m funding shortfall to present a balanced budget for 2024 to 2025. We will need to find a further £52m in savings in the three years beyond this.

We will do all we can to protect frontline services by being as efficient as possible and raising more income where we can. We will make difficult choices carefully, considering how they affect residents overall.

To help balance our budget, we will increase Council Tax by 4.99% from April 2024. While this increase adds around £1 a week to the average bill, it will raise an extra £5m. This is vital for those who rely on council services.

To help households on low incomes, we have also increased the maximum Council Tax discount available from 85% to 90%.

We will also extend the Empty Property Council Tax Premium. Any home that has been empty for more than 12 months will be charged double the usual Council Tax rate from April 2024. We’re also looking to apply this to second homes from April 2025.

Despite these measures, we will continue to have to do more with less. Alongside other local authorities, we’re continuing to call on government for proper, long-term and sustainable funding so we can continue to provide and invest in high-quality services for residents, including:

• multi-year, rather than annual, funding arrangements from government to allow us to plan sustainably
• funding based on proper assessment of current and future needs, particularly in areas of growing demand such as social care, homelessness and special educational needs
• a continuation of the Household Support Fund, a funding pot aimed at vulnerable households that the government is set to discontinue from April 2024

We will invest almost £599m in revenue funding along with capital investment of £268m allocated towards a fairer, safer Hackney. This includes:

• reducing poverty
• leading the way on anti-racism
• addressing the housing crisis
• creating pathways into decent jobs
• improving customer services
• creating successful town centres
• building safe neighbourhoods
• creating a fairer, more inclusive economy

Highlights include:

• £4.7m on our award-winning employment and training programmes
• £94 m towards our 1,000 new council homes target, with 182 social rent homes starting and 49 completing this year
• £12.3m pioneering community safety initiatives like the Community Gangs Team – a unique partnership approach to support people away from the risks of violent crime

We will invest over £208m in revenue funding along with capital investment of £61m towards a greener, healthier Hackney. This includes:

• leading the way in the fight against climate change
• working towards a net zero Hackney with cleaner air, less motor traffic, and more liveable neighbourhoods
• transforming adult and children’s social care
• tackling physical and mental health inequalities
• continuing to support, value, and give voice to our older and disabled residents

Highlights include:

• £55m to deliver on our net zero ambitions including retrofit, decarbonisation and electric vehicle projects
• £16m maintaining 58 parks and seven sport and leisure centres – this includes £1.7m on refurbishing play areas

We will invest £410m in revenue funding along with capital investment of £21m allocated to services towards ensuring every child and young person in Hackney has the best start in life. This includes:

• shaping a more inclusive and high performing education system
• maintaining early years and youth services
• keeping children safe and investing in their mental health and well being
• providing access to outstanding play, culture, and sport
• tackling child poverty
• supporting those families who need us most

Highlights include:

• £85.4m on support services for children and young people, including adoption and fostering
• £10.2m on youth and early help services for families, including our four youth hubs and six adventure playgrounds
• £21m investment in improving school buildings including increasing provision for special educational needs