Cuts could ‘create ghettos’
Hackney residents will feel the sharp end of the government’s cuts, according to local councillors, who aired their concerns at at a meeting of the Council’s Governance and Resources Scrutiny Commission last month.
“People will feel there’s a genuine attack on their current living standard,” said Scrutiny Commission member Cllr Geoff Taylor. Similarly, Cllr Deniz Oguzkanli said an expected fall in housing benefit could “create ghettos” and he warned of a rise in homelessness.
Cabinet Member For Finance Samantha Lloyd said all proposals affecting service levels should be publicly examined.
The coalition government’s plans to cut national spending by £74bn through 2015 will have a disproportionally adverse affect on Hackney because of its low tax base.
The expected reduction in central government grants could cost the Council as much as £80.6m by the 2014-15 tax year, according to its finance director, Ian Williams.
Hackney derives 75% of its budget from Whitehall’s Formula Grant, receiving £1,037 per resident, the highest amount in London.
The Formula Grant allocation is now being reviewed as part of the austerity measures. Even if it is frozen this year, the Town Hall will have to raise council tax to fund any additional spending, says the report. Central government, however, has promised to help councils avoid council tax increases in the 2011-12 tax year. The finance department is drawing up contingency measures to protect frontline services. Yet, Mr Williams warned: “there’s a danger of the Council hanging off the cliff edge if the funding doesn’t materialise.”
The Town Hall’s core scenario is a combined 25% spending cut by government departments 2010-15.
Complete details of national spending cuts will be announced by the Chancellor in the Spending Review on 20 October.
why / how will it create ghetto’s ?? Another useless article by this pointless airy fairy publication. I want to see people going back to work and less handouts which only pursuade the poor it pays not to work … If they choose crime then lock them up … In the third world you will die if you dont work shouldnt it be the same here ?
Thank you for continuing to cover this important issue, and the way Hackney’s scrutiny committees are working cross-party to consider the impact of cuts on local residents.
As the article notes, the Governance & Resources Scrutiny Commission will continue to publicly examine the impact of cuts, and would welcome anyone to attend the meetings or request further information. Scrutiny Commissions have already considered the impact on Hackney residents of the reforms to housing benefits, and wider reductions in public spending.
Each year the Scrutiny function provides challenge to the production of the council’s budget, and this year will complete a larger review of how the council plans to prepare for the impact of central government cuts. If you would like more information on this review, or about how the scrutiny function works in Hackney, contact scrutiny@hackney.gov.uk