Saturday, 30 October 2010
The Comprehensive Spending Review and its impact on Hackney
As you will be aware, the Comprehensive Spending Review was published last Wednesday which sets out Government spending over the next four years.
The Comprehensive Spending Review was catastrophic for local government - councils largely depend on grants from central government for their funding, and last week's announcement meant council funding will be cut by 27% between now and 2015.
As one of the poorest borough's in the country, Hackney will be disproportionately hit by the severe cuts that have been set out.
In the lead up to the chancellor’s announcement, savings of £26 million (6-7% of the total Council budget) had been identified - which meant Hackney Council could have coped for the next year without any reductions in frontline services.
However at this month's Full Council Mayor Jules Pipe told the meeting that we may be facing even worse government cuts than we thought in the coming year: “The detail behind last week’s government announcement suggests that the grant cuts aren’t spread across four years, but have been frontloaded to take out between £50 and £60million in the first year. This means a reduction of around 20 per cent in the first year, not the 7.25 per cent stated by the government. Unless there are further funding streams that are still to be revealed by the government to make up this shortfall, the council will be faced with having to make devastating decisions.
“Extra grant funding has been given to areas like ours in the past for good reason, but we will now see reductions in grant of more than twice the national average."
Mayor Pipe has declared that this level of cuts is Armageddon and he will fight these cuts and work with other poorer parts of the country to make sure Hackeny is not penalised for having more social needs.
The Mayor and Labour councillors will make every effort they can to minimise the effect of these cuts to our communities and the protection of frontline services will remain our absolute priority.
Are you concerned about the impact that the Coalition Government cuts are having on us locally in Stoke Newington? We want to hear from you.
Posted by Louisa Thomson at 14:25