Islington Council, widely regarded as one of the UK’s greenest local authorities, has confirmed it will pause parts of its net-zero programme this year due to growing financial constraints.
The Labour-run borough has previously received national praise for its ambitious climate policies, including large-scale decarbonisation projects and early adoption of low-carbon infrastructure.
Last year, Islington was ranked the top single-tier local authority in the UK for climate action, reflecting progress across transport, housing retrofits and waste management reforms.
Despite that recognition, council officials now say a lack of sustained government funding has limited their ability to continue delivering all planned net-zero initiatives at pace.
In 2020, Islington pledged to make its corporate estate carbon neutral by the end of the decade, setting out a series of infrastructure upgrades to achieve that goal.
Recent budget documents, however, highlight “severe limits” on available capital, particularly for high-cost projects such as replacing gas boilers or connecting buildings to heat networks.
As a result, the council has acknowledged that some original climate targets will need to be revised to become more “realistic” under current financial conditions.
Officials stress that the decision reflects delivery constraints rather than a loss of ambition, pointing to rising costs across energy, construction and public services.
While the government’s Fair Funding Review awarded Islington around £4 million for the coming financial year, the council expects overall costs to rise by roughly 10%.
Inflation and increased demand for statutory services are forecast to outstrip the additional funding, placing further strain on discretionary climate spending.
The council has also admitted it cannot consistently provide the match funding required to secure certain central government decarbonisation grants.
Without that upfront capital contribution, some climate projects cannot progress, even where external funding streams are theoretically available.
Cllr Rowena Champion said Islington had been “leading the way” on climate action and remained committed to reducing emissions as rapidly and fairly as possible.
She argued that many net-zero outcomes depend on national factors, particularly the availability of renewable electricity and the high cost of power compared with gas.
“Every net zero target in the country is dependent on our electricity being produced through sustainable, renewable sources,” Champion said.
She added that the council is working with residents, businesses and partners to develop a revised climate action plan.
Islington continues to deliver elements of its original Vision 2030 plan, including traffic restrictions to promote healthier streets and expansion of the Bunhill heat network.
The authority is also decarbonising its pensions and investments, reporting a 48% reduction through increased exposure to low-carbon and sustainability-focused assets.
The council declared a climate emergency in 2019 and has since cut transport emissions by 25% compared with 2018 levels.
Officials say further progress will depend on national policy, funding stability and energy market reform.
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