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.
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 £m||Income £m||Net expenditure £m|
|Children and youth services||53.938||57.953||5.040||6.655||48.898||51.297|
|Sports, parks, libraries and museums||12.944||13.012||0.853||0.853||12.092||12.159|
|Waste management, recycling and street cleaning||21.306||34.770||7.759||21.649||13.547||13.121|
|Environmental and enforcement services||7.038||6.946||2.056||2.205||4.982||4.741|
|Highways, traffic and transportation||16.132||16.816||4.468||5.250||11.664||11.566|
|Planning and regulatory services||4.013||3.783||3.998||4.028||0.015||-0.246|
|Housing and council tax benefits||300.079||300.057||296.316||296.331||3.763||3.726|
|Housing services including housing needs||37.894||41.913||31.768||32.911||6.126||9.002|
|Net cost of services||1074.877||1109.013||794.125||818.356||280.752||290.657|
|Levies from outside bodies|
|London Borough Grants Scheme||0.230||0.210|
|London Pensions Fund Authority||1.050||1.058|
|Lea Valley Regional Park||0.180||0.170|
|North London Waste Authority||6.850||6.770|
|Revenue contribution to capital outlay||6.026||5.400|
|Central government revenue support grant||(59.904)||0|
|Retained business rates||(35.187)||(152.622)|
|Collection fund surplus||(3.526)||(3.900)|
|Hackney's council tax requirement £m||71.748||76.868|
|Precepts from outside bodies|
|Greater London Authority council tax requirement||18.388||20.933|
|Total council tax requirement for Hackney and the Greater London Authority £m||90.136||97.801|
|Number of Band D equivalent properties||68,399||71,145|
|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.