Council budget 2021/22

The challenge

The Council’s response to Covid has prioritised those who need help most, providing thousands of emergency food parcels and supplies to shielding households; injecting unprecedented financial support for struggling families and small businesses; and keeping essential services running in immensely challenging circumstances.

This work, coupled with a loss of income from closed services and properties, means the Council faced a £58 million budget shortfall last year – equal to nearly half of the entire government cuts to our budget since 2010, in just one year.

Government grants have helped the Council to balance the books, and we will receive some government support for the coming three years. But, nevertheless, we will be left with funding challenges that will impact us for years to come.

Savings

The Council has been working to make savings behind the scenes to ensure frontline services continue to function well and that we can keep supporting our most vulnerable residents in the most difficult of times. We will also continue to receive government grants to help us through the crisis. Despite this, we still need to make nearly £11m of savings this coming year.

Council tax

The Council’s budget for the coming year was heard at Full Council on 24 February 2021 and included a council tax increase of 4.99%. It means most residents will pay less than £1 extra a week, but will ensure the Council can raise more than £4m to fund essential services to all residents at a time when they need them most.

When the government confirmed funding for local councils last year, it was on the basis that we would increase council tax. If we don’t, we simply won’t have the money to provide the important services we all need.

Most residents will pay less than £1 extra a week as a result of the increase, but it will mean we can raise more than £4 million to fund essential services residents rely on. For things like: waste and recycling, parks and libraries; social care for children and adults; measures to reduce poverty; resources to tackle the climate emergency; community safety; and services and activities for young people.

Hackney will still have one of the lowest council tax rates in London, and the Council is putting extra money into supporting the thousands of working-age households on the lowest incomes, and who already receive up to a 85 per cent discount, by reducing their bill by a further £60 a year. We are also investing an extra £900,000 this year into tackling inequality and poverty.

Council tax valuation bands

A B C D E F G H
Hackney Council £825.65 £963.25 £1,100.86 £1,238.47 £1,513.69 £1,788.91 £2,064.12 £2,476.95
GLA £242.44 £282.85 £323.25 £363.66 £444.47 £525.29 £606.10 £727.32
Total £1,068.09 £1,246.10 £1,424.11 £1,602.13 £1,958.16 £2,314.20 £2,670.22 £3,204.27

Rebuilding a Better Hackney

On 24 March 2021, the Council also agreed the budget for the year ahead, which outlines the significant investments the Council is making to rebuild a greener, fairer, safer and healthier Hackney out of the Covid pandemic.

The Council will continue to invest in the services we all value, that keep us safe and healthy, and which make Hackney such a great place to live: such as street cleaning, waste collection; looking after our six markets; our 58 parks, gardens and green open spaces; and maintaining our seven sports and leisure centres.

The Council will make Hackney fairer by improving existing social housing and continuing to build genuinely affordable new Council homes of which nearly 50 per cent will be for social rent, shared ownership or Hackney Living Rent. And by continuing to invest in our skills and employment services to ensure that Hackney residents get the help they need if they have lost their job or need more support.

The Council declared a climate emergency two years ago, and making our borough greener and more sustainable runs through the heart of the budget. We will be rolling out free home insulation to those who qualify for the Green Homes Grant; and delivering solar panel installation on the Council’s existing roof spaces. We are also switching to fortnightly waste collection, while maintaining weekly recyclable and food collections; and planting thousands of new trees this year.

Statement concerning adult social care funding

The secretary of state for communities and local government has made an offer to adult social care authorities.

Adult social care authorities are local authorities which have functions under Part 1 of the Care Act 2014, namely county councils in England, district councils for an area in England for which there is no county council, London borough councils, the Common Council of the City of London and the Council of the Isles of Scilly.

The offer is the option of an adult social care authority being able to charge an additional “precept” on its council tax for financial years from the financial year beginning in 2016 without holding a referendum, to assist the authority in meeting expenditure on adult social care.

Subject to the annual approval of the House of Commons, the secretary of state intends to offer the option of charging this “precept” at an appropriate level in each financial year up to and including the financial year 2021/22.

Page updated on: 19 August 2022