HC Deb 02 November 2001 vol 373 cc905-6W
Mrs. May

To ask the Secretary of State for Transport, Local Government and the Regions what discussions his Department has had with Hackney borough council concerning the administrative failings of the council in the last 12 months; and if he will make a statement. [9127]

Mr. Byers

My Department has been in close contact with members and officials at the London borough of Hackney over the last 12 months and prior to that on occasions.

The council has well chronicled financial and governance problems that have contributed to failures in the delivery of key services. Following an inspection of the whole authority, the Audit Commission advised me in July of this year that the council was not complying with its statutory Best Value responsibilities. It recommended the use of intervention powers under Part 1 of the Local Government Act 1999.

We consulted the council about the form of the Directions, as required by the statute. Their response was constructive and they have accepted the urgent need to improve their performance.

On 12 October, I gave Hackney five Directions under these provisions. The Directions require the council to produce a strategy for bringing its budget back into balance; and to improve services such as financial management, education, social services, benefit administration and waste management.

The purpose of the Directions is to restore financial accountability and control within the authority, and to protect and improve front-line services. The Directions set a clear timetable for improvements to be made and we expect the council to achieve these with tailored financial and other support. I have placed copies of the Directions in the Library of the House.

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