Council tax in Hackney is going up by 4.99%, in a move described as “never an easy decision”.
Hackney’s Mayor Philip Glanville said the council’s financial plan for next year is part of a “careful and considered” budget.
It comes at a time of crisis where residents have faced inflation levels which are “driving more people into poverty” with inflation rates “higher than most residents would have endured in their lifetime.”
Council tax will go up by the maximum of 4.99%, which will raise an extra £5m for services.
The increase is the highest the council is allowed without holding a referendum and is in line with many other London councils. Town hall bosses said it is one of the lowest rates in the capital.
It means residents in Band D will pay £1,773.29 a year, which includes the contribution to services such as police and fire provided by the Greater London Authority.
There is an 85% discount for those struggling most and Robert Chapman, the cabinet member for finance, urged people to get in touch early if they need help.
The council decided to give a one-off £50 payment for people on the council tax reduction scheme.
Council tenants also face a 7% increase in their rent – the highest permitted by government. Other London councils, including Camden, are increasing rent by the same rate.
The Mayor called on central government to give councils more certainty about future funding which makes it easier to plan.
He said extra funding is often ”of a one-off nature, so cannot be relied on for long-term financial planning”.
He said they do not cover gaps in funding for special educational needs and social care – areas which see an increase in demand.
Whilst the council put together a balance budget it predicts a gap of £22.2m in 2024/25, rising to £57.6m in 2026/27.
The council has already announced savings in its library services and is still consulting unions over its decision to cut 19 jobs which led to a series of strikes.
The Conservative opposition proposed a raft of savings including stopping the extension of Low Traffic Neighbourhoods and School Streets, to save £890,000. They also suggested fewer CCTV enforcement cameras and taking longer to refurbish the King’s Hall leisure centre.
Conservative deputy leader Simche Steinberger said: “You are spending money on the wrong things.”
His party also proposed cuts to council tax, with £64.84 off Band D properties, compared with the £63.65 increase agreed by the council.
The Green party suggested other changes to the budget.
They wanted to see the council review its charges for film companies using “desirable” locations in Hackney, which they said could boost income, as well as a review of the number of mayoral advisers and the axing of one of the deputy mayor roles.
They also wanted to see more staff working on the council’s money hub to help people get the money they are entitled to.
Other proposals include looking into a workplace parking levy and hiring a biodiversity officer to help tackle the climate emergency.
Green Party Cllr Alastair Binnie-Lubbock said: “We think it’s really important that the promised biodiversity officer is a permanent role and that they are fully resourced to protect Hackney’s environment for residents, including trees who have been resident for longer than many of us, and non-human animal residents who have as much right to peaceful enjoyment of their lives as the rest of us.”
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