‘Significant pressures’: Council tax hike confirmed as Town Hall outlines cost-of-living budget

Town Hall finance chief Cllr Diarmaid Ward. Photograph: Islington Council

Residents in Islington will see a 4.99 per cent increase in their council tax bills as part of a cost-of-living budget drawn up by the council.

The tax hike is the highest allowed without triggering a referendum.

People on the lowest incomes will get 95 per cent council tax support and the Town Hall is also continuing with its hardship fund.

Finance boss Cllr Diarmaid Ward said: “The cost-of-living crisis is having a significant impact on Islington residents, businesses, and the council.

“High inflation has resulted in significant budget pressures in respect of energy and fuel costs, pay inflation and high contract inflation for key service areas.”

He told colleagues: “We need to invest in services that matter to local residents.”

The budget includes £10.9m in savings, with a further £8m on the cards for the next financial year.

These include £862,000 on an in-house reablement service for people leaving hospital, with a total of £2m trimmed from the budget for adult social services.

The rise in energy prices, partly fuelled by the ongoing war in Ukraine, means the council has set aside an extra £4.8m contingency fund.

Cllr Ward pledged that investment into frontline services would continue.

“This includes protection of free school meals for every primary school pupil, keeping our libraries open, maintaining weekly recycling and rubbish collections, and a regular street-sweeping programme.”

The Green opposition proposed giving people on the lowest incomes 100 per cent council tax relief.

Green leader Caroline Russell said this would help people who are also struggling with rent arrears.

She said: “It is the right thing to do.”

Their proposals also include funding five more officers to tackle the backlog in housing repairs. They also suggested spending £1m over the next three years “to address cold, damp and mouldy homes – prioritising overcrowded households”.

Greens also want to see more bike hangars on streets and estates, a public toilet fund, and a workplace parking levy.

Cllr Russell also suggested a tutoring fund “to support school-aged children, especially those with pupil premium and historic groups in Islington, with an attainment gap”.

She said it would “reduce disparities between different socio-economic groups within the borough”.