Hackney local authority budget "shielded" in Localism Bill

Communities and Local Government Secretary Eric Pickles has this afternoon announced the settlement of the Localism Bill which has resulted in an average 4.4% cut in local authority funding across the UK. Ministers have announced that fuding priority will be given to areas of the country with the most social need, which will include local borough Hackney.

Hackney Council has already responded with anger to the funding cuts announced in the Comprehensive Spending Review, stating that the removal from the budget of the area-based grants that tackle social inequality will leave areas such as Hackney significantly worse off. Mayor Jules Pipe says,  "From the figures released so far, it's becoming clear that

the most deprived areas in the country will be hit hardest by these

spending cuts."

Billed as a "fair deal for local taxpayers", the Localism Bill seeks to devolve power from Westminster to local councils and involve local people in decision-making, including local referenda on council tax levels. Council tax is to be frozen for one year, which will no doubt be good news for some residents. At the same time, all councils are encouraged to cut spending and find ways to work more efficiently.

Councils have been grouped into four separate grant bands, based on the extent

to which they are reliant on government funding. No council is to lose more than 8.9% in total funding, with the avergae across all UK councils said to be 4.4%. As Hackney has been identified as an are of need, its allocation of the settlement for 2011-12 has been set at £1043 per head of the population (whereas Richmond upon Thames will receive £158 per head).

Commentators have welcomed the community devolution aspects of the bill but criticised the associated cuts, saying the offer of power to communities without the necessary funding is "hollow". Campaigners fear services such as libraries, leisure funding, school building projects and services for the elderly may be cut. Greater community involvement in deciding council budgets may now equate to greater involvement in deciding budget cuts, a less than welcome task.

An Emergency Motion made by councillors last month states that Hackney council "is concerned about the impact of the cuts

on vital public services and on the lives of our most vulnerable

residents." Hackney is inviting residents' views on the budget for next year. Read more about the budget here and let the council know what you think by emailing budget@hackney.gov.uk.

Haringey Council is also asking residents for their views on the budget - take part in the budget consultation online at this page.

Islington Council is continuing the work of its Fairness Commission to help determine a fair budget in the face of cuts, and invites all residents to the public council meeting on 17 February 2011 at which the budget will be set. See more details here.