Troubled Hackney hunts finance talent

Troubled Hackney hunts finance talent

Hackney Council is continuing its search for finance managers despite the threat of losing its powers to the new Department of Transport, Local Government and the Regions.

Currently the council is using interim consultants from Deloitte & Touche while it searches for 21 full-time finance managers.

The embattled local authority has been served notice the DTLR is prepared to use the Local Government Act 1999 to take control of its public services.

Stephen Byers, the new transport secretary, wasted no time stepping into the row over Hackney’s financial plight.

Under the provisions of the act, Byers could be given wide-ranging powers, including the transfer of functions from the council to his department.

His action resulted from warnings by senior Hackney officials that spending was in excess of income and that as a result no new spending commitments could be entered into.

This would lead to the non-renewal of all short-term and agency contracts, affecting supply teachers, child protection workers, benefits officers and other key workers. As a consequence, the DTLR said there would be severe disruption to the delivery of front line services.

Because of Hackney’s continual failure to generate a balanced budget, Byers believes action is needed to tackle the underlying financial control problems.

In order to maintain essential services Hackney will be given permission to borrow money but will not receive additional funds from the government.

In a statement, councillor Jules Pipe, leader of Hackney Council, said: ‘We welcome the fact that the secretary of state has today confirmed that we will be given permission to borrow money.’

He added: ‘We have made significant progress in tackling the failures of Hackney Council – failures which arose under previous management during a period when there was no overall political control of the authority.’

Links

Hackney in new fraud scandal

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource