Hackney faces ‘complete exhaustion of reserves’ without ‘urgent funding’ in Budget says councillor

Cllr Claudia Turbet-Delof speaking outside Hackney Town Hall. Photograph: Amanda Bentham

A Hackney councillor has said Rachel Reeves’ 2025 Budget does not provide the ‘urgent funding’ local authorities need.

Campaigners demonstrated on Wednesday evening (26 November) – the same day the Chancellor made her Budget announcement – to express discontentment over plans for the funding of public services.

The rally, organised by We Demand Change, saw representatives from trade unions and groups such as Hackney Palestine Solidarity Campaign and the recently-formed Hackney Coalition Against Palantir gather in front of the Town Hall.

Speaking at the event was Independent Socialist councillor for Victoria ward, Claudia Turbet-Delof, who claimed the Budget ‘does not put residents first’ and called on Reeves to ‘introduce a serious wealth tax to fund the social programmes our society needs to grow.’

She told the Citizen: “Families are struggling with rent, food and energy, councils are at breaking point, yet the government is offering delay instead of action.

“We are seeing homelessness instead of homes, surveillance instead of services, and scapegoating of migrants instead of real solutions.”

Demonstrators at the town hall on ‘Budget day’. Photograph: Amanda Bentham

On Wednesday, Rachel Reeves outlined plans to scrap the two-child limit for Universal Credit.

This is expected to lift an estimated 450,000 children nationwide out of poverty, including 15,480 in Hackney.

In a bid to lower the cost of living, the Budget also sets out plans to introduce a one-year freeze on regulated rail fares and prescription charges, as well as increasing the national minimum and living wages.

Reeves committed to the pension triple lock for the duration of the parliament, and in April 2026, the State Pension will be uprated by 4.8 per cent.

Reeves plans to invest £50 billion more relative to the Spring Budget 2024 plans into public services in 2029-30.

Cllr Turbet-Delof welcomed the scrapping of the two-child benefit cap, but said the Budget lacked a “serious plan for local authorities in an urgent financial crisis” and urged Reeves not to delay funding public services.

“Here in Hackney, we are rapidly running out of reserves, and without urgent funding we could face their complete exhaustion within the next 18 months – an immediate threat to frontline services, again, who will hurt the most are Hackney residents,” she added.

“If you can promise money in three or four years’ time, you can deliver it now.”

The Local Government Association (LGA) has similarly expressed concerns over Wednesday’s Budget.

“The Government has acted on LGA calls to provide greater financial certainty and a simpler funding system, which are hugely important for councils,” a statement reads.

“While funding levels have increased in recent years, councils will be rightly anxious that today’s Budget does not provide the increase in funding they desperately need to ensure their financial sustainability, protect services, support local communities, and address national priorities.”

The Chancellor of the Exchequer’s office has been contacted for comment.