“We need to change together”: Mayor Woodley on financial challenges

You are probably aware of the extreme financial challenges that councils across the country are facing.

In Hackney, we have a track record of strong financial management. We are not currently among the one in four councils that say they expect to seek emergency help from the government just to continue providing basic services for residents.

But I do need to be honest with you about the scale of our financial difficulties.

Our latest figures revealed this week show that we need to make £67m in savings in the next three years. That’s after securing some additional funding from the government in the latest budget, and implementing considerable savings already.

With our real terms funding from the government this year 40% less than it was in 2010, saving even more will be difficult. It means some of the services we currently offer won’t be sustainable.

An ever growing part of our budget is going towards a small number of vital services that we have a legal and moral duty to provide – social care for adults and children, support for young people with special educational needs and disabilities, and housing for those who approach the council as homeless.

Yet that means less to go around for the hundreds of other things we do, all of which make a real difference in Hackney.

We can still work together for a better Hackney, but we will also need to change together. As much of our shortfall as possible will be made up by transforming how we work. We recognise that change can be unsettling, so our focus is on identifying where we can invest to save in order to maintain and improve our services while reducing costs. 

For example, we are developing our own temporary accommodation for households without somewhere to live, reducing the reliance on expensive privately managed accommodation, costing the Council less in the long run.

However, we will need to make some very tough decisions as we work to balance our budget. 

In the coming months, as we begin to plan our budget for next year, we will provide more information about the changes we will need to make. 

We will do so carefully, transparently and – most importantly – prioritising the needs of Hackney’s most vulnerable residents first.

Caroline Woodley
Mayor of Hackney