Politics
Islington Council Boosts Housing Funds, Cuts Community Grants in 2026 Budget
The allocations shift resources toward new social housing placements for families in Islington while trimming support for local voluntary groups in wards such as Highbury and Clerkenwell.
How we reported this
Islington Council approved its 2026/27 budget on 7 July, directing an additional £4.2 million to social housing construction and allocations while cutting £1.1 million from discretionary grants for community organisations. The changes take effect from 1 September and apply only to council-managed properties and grant-funded projects within the borough.
Why the timing matters for local services
The decisions follow the publication of the council's annual financial statement, which recorded a £9 million shortfall in central government support compared with 2025 levels. Council officers stated that housing waiting lists now stand at 9,800 households, with priority given to those already in temporary accommodation in the borough.
Residents on the housing register in areas such as Finsbury and Canonbury stand to gain first access to the 320 new units scheduled for completion by March 2028. In contrast, small voluntary organisations running after-school clubs and older people's lunch clubs in Angel and Barnsbury face the loss of annual grants averaging £18,000 each, according to the grants schedule attached to the budget papers.
Numbers from the budget documents
The housing allocation rises to £18.7 million, an increase of 29 per cent on the previous year, while the community grants pot falls from £3.8 million to £2.7 million. These figures appear in the revenue and capital budget tables approved by full council on 7 July.
Policy analysts note that the housing spend is tied to specific sites already in the council's development pipeline, including land near the former Holloway prison. The grant reductions apply to organisations whose funding agreements expire before December 2026 and do not extend to statutory services such as libraries or children's centres.
Implementation begins with the next round of housing lettings in September. The council has scheduled a review of the grant programme for January 2027, at which point remaining discretionary funds will be reassessed against updated applications from groups in the affected wards.