Islington Council announces 2024/25 budget proposals and calls for fair funding from Government

The budget prioritises frontline services and aims to deliver a more equal Islington by supporting the council’s five missions - building a safe place to call home; creating a greener and healthier Islington; a fairer local economy; creating a child-friendly Islington; and making sure people can access support where and when they need it. 

But the impact of years of central Government cuts to council budgets, inflation, soaring costs and high demand for services mean the council has had to make further savings of £10.8million to set a balanced 2024/25 budget. 

Today the council pledges to keep prioritising the services that matter most to local people – but also warns government underfunding cannot continue without impact on frontline services. 

The council today makes three urgent calls for Government action: 

• Fair funding – local government has seen large declines in funding since 2010, and Islington has had to make savings of almost £300 million due to central Government’s underfunding.  The council urges Government to reverse the cuts to Islington’s funding since 2010, and increase local government funding in real terms to help protect local services. 
• Help maintain and build council homes – the council urges Government to properly fund council housing, and make it easier for councils to borrow money at affordable rates, and spend existing funds, to build much-needed new council homes. 
• Support for adult social care – national social care funding is at crisis point, and the way adult social care is funded nationally needs a complete overhaul to make it sustainable.  In Islington alone, the cost of adult social care is currently increasing by about £20 million each year. This is much more than the increase in money designated for adult social care by Government, which means the council has to save money from other services. The current system is not sustainable.  The council urges Government to create an ongoing settlement to create a resilient adult social care system that’s fit for the future, and guarantees everyone the care they deserve. 

Since 2010, the council’s core spending power to pay for local services has been cut almost in half, by an estimated 45 percent, because of central Government cuts, and the council has made budget savings of over £300 million.  More cuts from central Government are expected. 

Cllr Diarmaid Ward, Islington Council’s Deputy Leader and Executive Member for Finance, Planning and Performance, said: “We want to create a more equal Islington, and this year’s budget proposals do everything we can to protect vital services which residents need. 

“But this is getting harder and harder in a time when the overall impact of years of Government cuts to our funding, inflation, and spiralling demand for services are creating a perfect storm. 

“We urge Government to make three changes – reverse the years of underfunding, help us maintain and build council homes, and create a resilient system of adult social care that’s fit for the future. 

“Without significant change and investment, we will face very difficult decisions about local services in the years ahead.  Years of underfunding cannot continue without impacts on the front line.” 

In the last year, there has been a continued rise in demand for adult and children’s social services, as well as wider support to residents, which has not been matched with increased government grant.  Also, there has been a significant increase in demand for support with special educational needs and disabilities (SEND), not matched by a similar increase in Government funding. 

This means the council has had to make significant budget savings to create a balanced budget for 2024/25. To help pay for services, it proposes to increase council tax by 2.99 percent – though thousands of people will get help with their bills from Islington’s Council Tax Support Scheme, which from April is being changed so the lowest-earning households pay no council tax at all.  

To help pay for the rising costs of adult social care, the council will also apply the Government’s two percent adult social care precept. This will raise approximately £2.2million to help pay for adult social care. Despite an increase in social care grants to Islington, this is still much less than the annual increase in the cost of adult social care in Islington. 

Savings in the budget include changes to back-office systems and processes, and a voluntary redundancy scheme. Also, in line with many other London boroughs, there will be an annual charge for residential green garden waste collections. 

Key work in the council’s draft 2024/25 budget to support the council’s five missions includes: 

• A safe place to call home: continuing to build new genuinely affordable homes as part of the council’s commitment to deliver 750 new council homes 

• Greener, healthier borough: continued investment of more than £10million for School Streets and Liveable Neighbourhoods to reduce air pollution, and make it easier to walk, cycle and scoot.  This includes work on Liveable Neighbourhoods for Mildmay, The Cally, Barnsbury and Laycock, Bunhill and Dartmouth Park, and school streets across Islington including secondary schools. Almost £6million investment in electric vehicles for council services, and £1.8million to create more electric charging points 
• A fairer local economy: continuing to support over 1,000 residents a year into work by protecting investment in our pioneering iWork services, plus delivering advice and support to over 1,500 businesses on our local high streets, as well as investing nearly £700,000 in a regeneration project at Chapel Market to secure the heritage of our street markets for generations to come 
• Child-friendly Islington: protecting an extra £500,000 investment, first begun in 2019, to tackle serious youth violence and opening our third Family Hub 
• Help and support where and when people need it: continuing to fund new Access Islington hubs that bring together help and support under one roof and maintaining funding to support key voluntary sector partners 

The draft budget proposals are set out in the papers for the council’s Executive meeting on 11 January. Residents and business rate payers will be invited to comment, and final proposals will be considered by full council on 29 February 2024.