Budget Consultation 2026/2027
We are inviting residents and business rate payers in Islington to comment on the council’s proposed budget for 2026/27.
How the council manages and spends its budget is key to how we work together with businesses, partners, and residents to create a more equal future for Islington.
The published report can be found Draft Budget Proposals 2026/27 and Medium Term Financial Strategy
The Draft Budget Proposals will be considered by the council’s Executive on 22 January 2026. Comments from this consultation will be considered when preparing the Final Budget Proposals.
The Final Budget Proposals will be considered at the Full Council meeting on 26 February 2026.
Islington has faced a huge level of government underfunding over the past 15 years. Islington's baseline funding (including a 4.99% increase in council tax) will increase by 1% overall in 2026/27. However, small decreases in funding are expected for the following two years. This is in the context of demand and inflationary pressures increasing the council's anticipated costs every year.
Despite these challenges, Islington has set a balanced budget for 2026/27.
To help take further strides towards a more equal future and to supplement these achievements, our budget includes a new £5 million fund to support one-off investments to further improve the everyday services our residents rely on.
The increase in costs without an equal increase in income means that the council has to find savings. The process of finding and delivering more savings whilst protecting services is very challenging. Department budgets are set with a strong focus on delivery of vital front-line services, relied on every day by many in the borough.
Our preferred option is to increase council tax in line with the maximum allowed by central government. This means a 2.99% for core council tax and 2% ringfenced for adult social care, creating a total increase of 4.99%.
For the average (Band D) property, the proposed 4.99% increase in Islington council tax will mean an increase £1.46 per week. This does not include the part of council tax which paid to the Greater London Authority.
£28m will again be invested in the Council Tax Support Scheme, supporting the most financially vulnerable households and meaning the lowest-earning households pay no council tax at all.
Business rate multipliers are set by central government. Islington Council has no control over the changes to business rates multipliers. The government announced the changes to business rate multipliers in the National Budget:
The small business rates multiplier will decrease from 49.9p to 43.2p in 2026/27.
The standard business rates multiplier will decrease from 55.5p to 48p in 2026/27.
A new separate multiplier will exist for retail, hospitality and leisure properties which is 5p below the national equivalents (38.2p for small and 43p for standard). The new multiplier replaces the 40% relief which was available to retail, hospitality and leisure properties.
There will also be a new multiplier of 50.8p on all properties with a rateable value of £500,000 and above.
Thank you for taking the time to tell us how you feel about the council’s budget.
There are six questions, and it should not take more than five minutes to complete.
