§ The Minister for Local Government and the Regions (Mr. Nick Raynsford)We announced on 31 January 2002 that the Government would provide the London Borough of Hackney with £25 million of financial support in 2002–03, This was part of a package of measures including stringent conditions, requiring improvements in the authority's performance and the restoration of its financial stability.
The £25 million support is an exceptional measure, provided to prevent unacceptable cuts in services. It is being given to enable Hackney to get their finances back in order on a long-term basis and deliver the frontline services the people of Hackney deserve. Without this support Hackney would have been unable to balance their budget this year and action to turn the authority around would have been still further delayed. I am pleased to say I am advised that, with our help, Hackney are expecting to balance the 2003–04 budget, and are making good progress in a number of other areas to build for the longer term.
I am today laying before this House a Special Grant Report, number 113, which seeks approval for providing Hackney with the £25 million to support its 2002–03 finances.