Hackney Council’s budget could reduce by 40 per cent

PUBLISHED: 18:10 03 December 2015 | UPDATED: 18:10 03 December 2015

Hackney Town Hall, of Mare Street.

Hackney Town Hall, of Mare Street.


Mayor of Hackney, Jules Pipe has criticised the Conservative government for slashing funding for local authorities by an estimated 40 per cent.

The comprehensive Spending Review announced by Chancellor of the Exchequer George Osborne last Wednesday set out how the government intends to spend taxpayers’ money for the next four years, covering the period up until the next election.

It had been thought cuts in police budgets could reach up to 20 per cent as he sought to make savings of £20 billion across all departments, but the Met escaped with no cuts at all, with Osborne stating that “now is not the time for further police cuts”.

However local government was not so lucky.

Mayor Pipe said: “As expected, the chancellor hit local government the hardest of all public services, and over the next four years we will see a 40 per cent reduction in financial support from government.

“His answer to the need for greater funding for adult social care was to suggest a two per cent hike in council tax, which in Hackney would generate just £1.3m, or around £55m across London - but the estimated funding gap in the capital’s adult social care system is £900m.

“Worst of all for Londoners was the announcement on housing that will see more than a £1 billion spent on starter homes and other initiatives, none of which will be affordable to people on moderate incomes, let alone the tens of thousands of people currently residing in temporary accommodation across London.”

Hackney Council could not confirm a specific figure on how much the estimated funding gap in Hackney’s adult social care system is predicted to be, but said that core funding from central government for existing services will have fallen by around 65 per cent in real terms over the decade from 2010 to 2020.

A spokesman from the Department for Communities and Local Government (DCLG) denied local governments were losing out following the review.

She said: “The announcement at the Spending Review means councils will have almost £200 billion to spend on local services over the lifetime of this parliament, a cash terms increase and a reduction of just 1.7 per cent in real terms each year.

“Alongside this we are giving more powers and greater flexibility for town halls to take control of their finances while protecting public services and boosting adult social care through a £3.5bn investment.”

But a spokesman for Hackney Council said the claim that financial support to local government will be maintained is based on future funding streams which cover both existing services as well as new responsibilities that will be transferred to local government, such as from the Department of Health.


Welcome , please leave your message below.

Optional - JPG files only
Optional - MP3 files only
Optional - 3GP, AVI, MOV, MPG or WMV files

Please log in to leave a comment and share your views with other Hackney Gazette visitors.

We enable people to post comments with the aim of encouraging open debate.

Only people who register and sign up to our terms and conditions can post comments. These terms and conditions explain our house rules and legal guidelines.

Comments are not edited by Hackney Gazette staff prior to publication but may be automatically filtered.

If you have a complaint about a comment please contact us by clicking on the Report This Comment button next to the comment.

Not a member yet?

Register to create your own unique Hackney Gazette account for free.

Signing up is free, quick and easy and offers you the chance to add comments, personalise the site with local information picked just for you, and more.

Sign up now

Latest Hackney News Stories


Hackney Police need help finding an elderly man missing from Stoke Newington.

Yesterday, 17:41

Bank Holiday plans were ruined for dozens of people in Stamford Hill when both lifts in their 15-storey council block broke – leaving them stuck for two days.

Yesterday, 16:19

Each week, the Gazette takes to the streets to unearth something being manufactured right here in Hackney. This week we speak to Ed Mason from The Five Points Brewing Company, which has collaborated with Field Day to produce a special beer for the Victoria Park festival in June.

Yesterday, 15:36

Diane Abbott has said Theresa May’s “lacklustre” Brexit strategy will help Labour oust the Tories in next month’s General Election.

Yesterday, 15:07

Jeremy Corbyn’s stance on Brexit could cost the Labour party seats in Hackney, according to the Liberal Democrats.

Yesterday, 12:23

A bereaved daughter is desperately trying to trace a stolen iPhone which had “precious” photos of the last holiday she spent with her late mother - which was last traced to Hackney.

Yesterday, 11:58

A brain injury charity will launch its first ever pop-up shop next month in Hoxton.

Yesterday, 11:56

Meg Hillier has urged Jeremy Corbyn to clear up his stance on Brexit to avoid a backlash from voters.

Education and Training


Read the
Education and Training
e-edition today

Read Now

Newsletter Sign Up

Sign up to receive our regular email newsletter

Most read news


Show Job Lists


Hackney Half Marathon takes place on April 30, and the Gazette has two pairs of free tickets to give away.