Council taxes will rise by 4.99 per cent, as part of Islington’s 2025/26 budget, to help “those that need it most.”
Councillors approved the change in their 27 February meeting to meet the growing cost of providing essential services, such as those for children and homeless people.
This represents the largest increase local authorities can make before they are required to hold a referendum, unless granted exceptional permission, under rules introduced by the coalition in 2012.
While the change equates to an average increase of £1.39 per week per taxpayer, the council stressed the lowest-earning households do not need to pay at all because of their Council Tax Support Scheme.
Islington justified the increase as it is to spend more in several areas, including almost £82.8m for child and young people services, and £62.9m for health and social care.
Councillors also agreed to savings by reducing the cost of financial services, making legal service efficiencies, and taking advantage of an increased central government childcare grant.
Councillor Diarmaid Ward, Islington Council’s Executive Member for Finance and Performance, said: “We know that these are tough times, but we’re here to support those that need it most.
“While we’ve been able to take concrete steps towards a more equal future in our budget for this year, we’ve also had to make difficult decisions to achieve the necessary £14.2m in savings.”
He added the council will continue to call for a “much-needed review of funding formulas.” He said this change was necessary to make local government finances secure.
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