Politics
Local Government Finance Bill 2026: Hackney Grant Formula Compared to Other London Boroughs
The bill changes how central grants reach Hackney, directly affecting the borough's annual spending on housing, transport and adult care services.
How we reported this
The Local Government Finance Bill 2026 revises the grant distribution formula used by the Department for Levelling Up, Housing and Communities, reducing Hackney's core spending power by an estimated £12 million from April 2027 while increasing allocations to outer London boroughs such as Barnet and Bromley.
The legislation follows the 2025 Spending Review and responds to updated population and deprivation data published by the Office for National Statistics in March. It replaces the previous needs-based weighting that had been in place since 2013.
Changes for Hackney residents
Hackney Council currently spends £87 million a year on adult social care. Under the new formula this amount is projected to fall by 4 per cent, requiring the council to either raise council tax or reduce the number of home-care hours provided to older residents in areas such as Clapton and Dalston.
Transport budgets face a separate cut. The bill removes a ring-fenced element previously worth £3.2 million that supported bus priority measures on the A10 corridor. Neighbouring Islington retains a larger share of the same funding stream because its deprivation score remains higher under the revised index.
Comparison with peer boroughs
Policy documents tabled in the House of Commons show Hackney's per-resident grant falls to £1,148, below the London average of £1,211. Tower Hamlets receives £1,264 per resident after the same recalculation, largely because its child-population weighting increases. Camden's allocation stays almost unchanged at £1,189.
Council officers have scheduled public briefings for 22 July to explain the figures. Residents can submit written comments until 15 August before the final budget is set in February 2027.