Hackey gets final finance orders
Embattled Hackney Council has today been officially ordered by the government to get its financial house in order and balance its budget.
Secretary of state Stephen Byers issued the council with final statutory directions that require Hackney to make improvements in education, social services, waste management and housing benefits and to make the budget balance.
The move followed a month-long consultation process between Hackney and five government departments, including Byers’ department for transport, local government and the regions.
Hackney is now required to publish action plans by 30 November showing how it will introduce a new system of financial control and stability without further government support.
Byers said: ‘We now expect the council to comply with these directions and to begin to provide the quality services that local residents want and deserve.’
It is still not clear whether additional public money will be used to help bring Hackney back from the brink.
Jules Pipe, Hackney’s leader, said: ‘The directions issued today are achievable with government support and we are continuing discussions with civil servants from a number of departments about this.’
The government is already paying Deloitte & Touche to recruit several senior finance managers.
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Hackney Council faces crisis cuts
Hackney told to balance budget