Purpose

To set the 2025/26 Council Tax Rate and the 2026/27 General Fund Revenue Budget

Initial date added to Forward Plan: 11 April 2025

Decision

On a recorded vote there being: For (7): Cllr Caroline Woodley, Cllr Anntoinette Bramble, Cllr Guy Nicholson, Cllr Robert Chapman, Cllr Susan Fajana-Thomas OBE, Cllr Christopher Kennedy and Cllr Sarah Young.

Abstentions (0)

Not present in the Chamber (2): Cllr Sade Etti and Cllr Carole Williams,

The resolution was declared CARRIED

RESOLVED:

1. 1  Cabinet is recommended to consider the report and make the following recommendations to Council for approval:
2. 2  Council is recommended:
3. 2.1  The report provided approval for the Council to bring forward into 2026/27 the Council’s projected 2025/26 General Fund balance of £19.0m with the aim of increasing this to £22m - £24m over the medium-term period noting the Housing Revenue Account (HRA) projected 2025/26 balance of £13.5m with the aim of increasing to £16.8m by the end of March 2027
4. 2.2  The directorate estimates and estimates for the General Finance Account items set out in Table 2 in Section 12 of this report, were noted and endorsed.
5. 2.3  The budget being a financial exposition of the priorities set out within the Strategic Plan summarised at Section 6 below, were noted.
6. 2.4  It was noted that in line with the requirements of the Local Government Act 2003, the Group Director Finance and Corporate Resources, was of the view that:

The General Fund balances which currently stand at £19.0m and the level of other reserves are adequate to meet the Council’s financial needs for 2026/27 and that considering the economic uncertainty they should not fall below this level and that the aim is to increase these to £22m - £24m over the medium term.

This view takes account of the reserves included in the Council’s latest published 2024/25 Accounts and the movements of those reserves since that date – which have been tracked through the Overall Financial Position (OFP) Reports, and the latest OFP projections. Note also, that the projections in the HRA Budget to increase the balance to £16.8m by 31 March 2027. The HRA Business Plan sets out how the reserve levels will be built up over the next two financial years with the aim to be at 10% by the end of 2027/28.

The General Fund estimates are sufficiently robust to set a balanced budget for 2026/27. This takes into account the adequacy of the level of balances and reserves outlined above and the assurance gained from the comparisons of the 2025/26 budget with the projected spend identified in the December 2025 OFP. The overall level of the corporate contingency has been set at £2m.

1. 2.5  The proposed General Fund fees and charges as set out in Appendix 7a & Appendix 7b (exempt) for implementation from 1 April 2026 were approved.
2. 2.6  Confirmation that the Mayor, Cabinet and the Corporate Leadership Team would act to deliver the approved savings plans and develop robust savings plans to close the revised Medium Term Financial Plan budget gaps set out in Appendix 5 and deliver a year on year balanced position, taking into account the recommendation of the S151 Officer as set out in the Section 25 Statement (Appendix 12). Consideration given to building in increases to our revenue reserves to improve the financial resilience of the Council in the medium term. 
3. 2.7  The summary of the HRA Budget and Rent setting report proposed to Cabinet on 26 January 2026, was noted.
4. 2.8  Authority was delegated to the Group Director of Finance and Corporate Resources to implement any virements required to allocate provision for demand and growth pressures set out in this report subject to the appropriate evidence base being provided.
5. 2.9  The allocation of resources to the 2026/27 capital programme referred to in Section 20 and Appendix 6, were approved.
6. 2.10 Approval for the Flexible Use of Capital Receipts Strategy for 2026/27 (Appendix 10) was noted and agreed, with a maximum expenditure limit of £19.3m (2026/27), recognising that this approval does not constitute a commitment to utilise the strategy (paragraph 20.5 and Appendix 10).
7. 2.11 Authority was delegated to the Section 151 Officer to authorise the implementation of the Flexible Use of Capital Receipts Strategy at the conclusion of the financial year, contingent upon a comprehensive assessment of the Council's overall financial position (paragraph 20.5 and Appendix 10).
8. 2.12 The prudential indicators for Capital Expenditure:- the Capital Financing Requirement; the Authorised Limit and Operational Boundary for External Debt; the Affordability Prudential Indicators; and the Treasury Management Prudential Indicators for 2026/27 as set out in Section 21 and Appendix 3, were noted and agreed.
9. 2.13 Approval granted that the authorised limit for external debt of £1,241m agreed above for 2026/27 will be the statutory limit determined under section 3(1) of the Local Government Act 2003. Further reassurance about the robustness of the budget is the confirmation that the Council’s borrowings are within the boundaries of prudential guidelines.
10. 2.14 It was acknowledged that at its meeting on 28 January 2026 the Cabinet agreed its Council Tax Base for the 2026/27 financial year as 80,163.35 in accordance with regulations made under section 33(5) of the Local Government Finance Act 1992. The Council Tax Base is the total number of properties in each of the eight council tax bands A to H converted to an equivalent number of band D properties.
11. 2.15 The Cabinet approved the following amounts to be now calculated for

the year 2026/27 in accordance with Sections 31A to 36 of the Localism Act 2011.

The authority calculates the aggregate of: (in accordance with Section 31A (2) of the Act).

(a)  £1,371.155m being the expenditure which the authority estimates it will incur in the year in performing its functions and will charge to a revenue account, other than a Business Improvement District (BID) Revenue Account, for the year in accordance with proper practices.

(b)  £2m being such allowance as the authority estimates will be appropriate for contingencies in relation to amounts to be charged or credited to a revenue account for the year in accordance with proper practices.

(c)  £nil being the financial reserves which the authority estimates it will be appropriate to raise in the year for meeting its estimated future expenditure.

(d)  £nil being such financial reserves as are sufficient to meet so much of the amount estimated by the authority to be a revenue account deficit for any earlier financial year as has not already been provided for.

(e)  £nil being the amount which it estimates will be transferred in the year from its general fund to its collection fund in accordance with section 97(4) of the 1988 Act, and

(f)  £nil being the amount which it estimates will be transferred from its general fund to its collection fund pursuant to a direction under section 98(5) of the 1988 Act and charged to a revenue account for the year.

1. 2.16 The authority calculates the aggregate of: (in accordance with Section

31A (3) of the Act)

(a)  £1,245.957m being the income which it estimates will accrue to it in the year and which it will credit to a revenue account, other than a Business Improvement District (BID) Revenue Account, for the year in accordance with proper practices.

(b)  £2.962m being the amount which it estimates will be transferred in the year from its collection fund to its general fund in accordance with section 97(3) of the 1988 Act.

(c)  £nil being the amount which it estimates will be transferred from its collection fund to its general fund pursuant to a direction under section 98(4) of the 1988 Act and will be credited to a revenue account for the year, and

(d)  £nil being the amount of the financial reserves which the authority estimates it will use in order to provide for the items mentioned in subsection (2) (a), (b), (e) and (f) above.

1. 2.17 £124.236m being the amount by which the aggregate calculated under

subsection (1) above exceeds that calculated under subsection (2)

above, the authority calculates the amount equal to the difference; and

the amount so calculated is its Council Tax Requirement for the year.

1. 2.18 £124.236m being the amount at (3.2.17) divided by the amount (3.2.14)

above, calculated by the Council, in accordance with section 31A of the

Act, £1,549.79 as the basic amount of its council tax for the year.

1. 2.19 That the Council in accordance with Sections 30 and 36 of the Local

Government Finance Act 1992, hereby sets the aggregate amounts

shown in the tables below as the amounts of Council tax for 2026/27 for

each part of its area and for each of the categories of dwellings.

Valuation Bands Hackney

A

B

C

D

E

F

G

H

£1,033.19

£1,205.39

£1,377.59

£1,549.79

£1,894.19

£2,238.59

£2,582.98

£3,099.58

1. 2.20 It was noted that for 2026/27 the Greater London Authority has stated

the following amounts in precepts issued to the Council, in accordance

with Section 40 of the Local Government Finance Act 1992, for each of

the categories of dwellings shown below. These precepts are subject to

the approval of the GLA Assembly at their meeting scheduled for 26

February.

Valuation Bands GLA

A

B

C

D

E

F

G

H

£340.34

£397.06

£453.79

£510.51

£623.96

£737.40

£850.85

£1,021.02

1. 2.21 That having calculated the aggregate in each case of the amounts at
2. 2.19 and 3.2.20 above, the Council, in accordance with Section 30(2)

of the Local Government Finance Act 1992, hereby sets the following

amounts as the amounts of Council Tax for 2026/27 for each of the

categories of dwellings as shown below.

Valuation Bands Combined Hackney/GLA

A

B

C

D

E

F

G

H

£1,373.53

£1,602.45

£1,831.38

£2,060.30

£2,518.15

£2,975.99

£3,433.83

£4,120.60

1. 2.22 Approval, subject to the decision of Members on recommendations
2. 2.19 to 3.2.21, that Hackney’s Council Tax requirement for 2026/27 be

£124.236m which results in a Band D Council Tax of £1,549.79 for

Hackney purposes and a total Band D Council Tax of £2,060.30

including the Greater London Authority (GLA) precept.

1. 2.23 Approval, that in accordance with principles approved under section

52ZB of the Local Government Finance Act 1992, and the new

provisions included in the Localism Act 2011, the increase in the

Council’s Council Tax requirement for 2026/27 as shown at Appendix 8

is not excessive (5% or above) and therefore does not require the

Council to hold a referendum.

1. 2.24 Approval for the Treasury Management Strategy for 2026/27, set out at

Appendix 3.

1. 2.25 Approval for the criteria for lending and the financial limits set out at

Appendix 3.

1. 2.26 Approval for the Minimum Revenue Provision statement setting out the

method of calculation to be used, as set out in paragraphs 21.19-21.23

below.

Recommendation for Cabinet Only

1. 3  Approval that, should it be necessary following the meeting of the GLA

on 26 February 2026, the Group Director, Finance and Resources be

authorised to update the content of this report for any changes to the GLA’s band D council tax and related GLA council tax income, by way of a written addendum, for the approval of Full Council at its meeting on 4 March 2026.

Reasons for Decision

The Council has a legal obligation to set its Council Tax and adopt its annual budget. This report is seeking formal approval of the 2026/27 budget.

Previous decisions in this context relate to:

·  The Overall Financial Position reports presented monthly to Council during 2025/26.

·  The Calculation of the 2026/27 Council Taxbase & Local Business Rates report approved by Council on 28 January 2026.