“We will need to take more difficult decisions” – Councillor Chapman on council finances

All local authorities are facing enormous financial challenges as a result of rapidly growing demand, huge increases in costs, and the long-term absence of proper funding from the government.

When we set this year’s budget in the spring, we did so highlighting these huge financial challenges and the impact they will have in the years ahead. The latest financial report, which I presented to the Council’s Cabinet this week, shows the stark reality of this crisis. 

We are already expecting to spend over £21m more than planned this financial year, driven by spending on some of the most critical services such as providing social care and tackling homelessness. 

That’s on top of the £52m in savings that we already need to find over the next three years.

In light of this, we are taking sensible steps to mitigate this year’s budget gap, including reviewing agency recruitment and non-essential spending. But we will need to take more difficult decisions and make more substantial savings to keep our finances stable – it’s the only way we can continue to protect services for Hackney’s most vulnerable residents.

Continuing as we are and taking no action would undoubtedly put us in greater financial difficulty, and force us to take more drastic action.

After 14 years of underfunding, we were pleased to see the new Government set out its plan to meet the challenges of the next decade last week. We now need  sustainable, long-term funding to reverse the financial crisis impacting local government and the vital services that all councils provide.

Cllr Robert Chapman, Cabinet Member for Finance, Insourcing and Customer Services