Council budget 2018/19

Introduction by Philip Glanville, Mayor of Hackney

Managing a council budget is no simple task, but setting this year's budget has been the toughest in many years. Hackney is a fantastic place to live. We have stunning green spaces, a world-famous cultural offer, a strong community spirit, some of the best schools in the country, and we're working hard to make sure that every resident can access the opportunities created by the growth in our local economy. I'm proud of the excellent services the Council provides, but it's getting harder and harder to fund them.

Government cuts

Hackney has a strong financial track record but seven years of Government cuts are taking their toll on public services, as more and more people are turning to councils for support, with less and less money available to help them. In Hackney, our Government grant has shrunk from £310 in 2010 to £184m this year - and by 2019/20 it is expected to be just £170.

Impact of the cuts

We're now in our seventh year of austerity, and people are well used to the idea that public service budgets have been slashed. But for many councils, including Hackney, the impact is only really being felt now. Quite simply, councils are at breaking point.

In previous years, we've taken steps to save money, like reducing our management bill from £18.4m to £9.7m, and other back office efficiencies, which saved £40m, we're now at the stage where we're running out of options.

Philip Glanville, Mayor of Hackney

Estimate of spending

 Gross expenditure £mIncome £mNet expenditure £m
 2017/182018/192017/182018/192017/182018/19
Council services      
Education270.580262.881245.336238.17225.24424.709
Adult services 95.75599.92714.59617.20081.15982.728
Children and youth services53.93857.9535.0406.65548.89851.297
Public health34.44933.5730.0000.00034.44933.573
Sports, parks, libraries and museums12.94413.0120.8530.85312.09212.159
Waste management, recycling and street cleaning21.30634.7707.75921.64913.54713.121
Environmental and enforcement services7.0386.9462.0562.2054.9824.741
Highways, traffic and transportation16.13216.8164.4685.25011.66411.566
Planning and regulatory services4.0133.7833.9984.0280.015-0.246
Housing and council tax benefits300.079300.057296.316296.3313.7633.726
Council housing140.604139.742140.604139.7420.0000.000
Housing services including housing needs37.89441.91331.76832.9116.1269.002
Other services80.14397.64141.33153.36038.81344.281
Net cost of services1074.8771109.013794.125818.356280.752290.657
Levies from outside bodies      
Environment Agency    0.1550.160
London Borough Grants Scheme    0.2300.210
London Pensions Fund Authority    1.0501.058
Lea Valley Regional Park    0.1800.170
North London Waste Authority    6.8506.770
Revenue contribution to capital outlay    6.0265.400
Budget requirement    295.243304.425
Less      
Central government revenue support grant    (59.904)0
Other grants    (124.878)(71.035)
Retained business rates    (35.187)(152.622)
Collection fund surplus    (3.526)(3.900)
Hackney's council tax requirement £m    71.74876.868
Precepts from outside bodies      
Greater London Authority council tax requirement     18.38820.933
Total council tax requirement for Hackney and the Greater London Authority £m90.13697.801
Hackney's taxbase      
Number of Band D equivalent properties    68,39971,145
Basic amount of council tax per Band D property   £1,317.80£1,374.67

Statement concerning adult social care funding

The Secretary of State for Communities and Local Government has made an offer to adult social care authorities. Adult social care authorities are local authorities which have functions under Part 1 of the Care Act 2014, namely county councils in England, district councils for an area in England for which there is no county council, London borough councils, the Common Council of the City of London and the Council of the Isles of Scilly.)

The offer is the option of an adult social care authority being able to charge an additional "precept" on its council tax for financial years from the financial year beginning in 2016 without holding a referendum, to assist the authority in meeting expenditure on adult social care. Subject to the annual approval of the House of Commons, the Secretary of State intends to offer the option of charging this "precept" at an appropriate level in each financial year up to and including the financial year 2019-20.

Page updated: 21/11/2018 14:53:40