Key Points:
- Hackney Council to spend £2 million on consultants in 2024–25 to support council-wide transformation.
- The plan, led by Mayor Caroline Woodley, aims to make the council more “flexible, collaborative and efficient.”
- Transformation expected to deliver £42m in savings by 2027–28, including £17m already in progress.
- Corporate strategy director Kieran Read said the consultancy support is essential due to the scale and urgency of change needed.
- Inner Circle Consulting hired for the first phase; more consultants to follow in phase two.
- Committee chair Cllr Margaret Gordon raised concerns about high consultancy fees and potential risks.
- Capital receipts and increased staffing also form part of the transformation budget, with £24.4m planned for 2025–26.
- Council projects include improving digital tools, better data use, and streamlining services like Blue Badge applications.
- Hackney Council also reviewing all rejected disabled parking permits following a watchdog ruling.
Hackney Council to spend £2m on consultants in bid to transform services and cut costs. Hackney Council will spend £2 million on consultants this year as part of a multi-year plan to overhaul how services are delivered, aiming to close a £52 million budget gap and improve outcomes for residents.
Why is Hackney Council undertaking a transformation?
The “corporate transformation project” was outlined during a scrutiny panel meeting on Thursday, 10 April, by Mayor Caroline Woodley and corporate strategy director Kieran Read. The plan seeks to modernise Town Hall operations, which officials say are under intense financial strain due to rising demand for core services like adult social care, children’s social care, and temporary accommodation.
“This is the annual dilemma for this council,” said Mayor Woodley, explaining that the current approach of “salami-slicing” services like libraries and youth hubs is no longer sustainable. She warned that prioritising social care above all else risks neglecting vital community services.
What will the £2m consultancy spend cover?
Hackney has already hired Inner Circle Consulting to support the first phase of its transformation, and further external consultants will be recruited for phase two. Mr Read said the scale and urgency of the changes required meant expanding internal teams wasn’t feasible.
“We believed there was value in working, in a managed way, with a consultancy partner [which has] supported a range of authorities recently,” he said.
Committee chair Cllr Margaret Gordon (Lab, Lea Bridge) questioned the justification for such high external costs, especially during tight financial conditions: “In such challenging financial times, we want to understand why that money needs to being invested rather than spent directly on residents’ services.”
She also expressed concern that the transformation may not yield meaningful improvements despite the financial outlay.
How will the council measure success?
The overarching goal is to make Hackney Council more agile and capable of delivering “high performance culture” outcomes, according to chief executive Dawn Carter-McDonald. The programme also aims to better use data, embrace digital tools, and increase early intervention across services.
Officials hope to save £42m through the transformation by 2027–28. Of this, £17m is already in delivery from last year. The council expects the current plans to reduce the borough’s budget deficit by £21m.
Funding will come in part from the “flexible use” of capital receipts—money generated from selling council-owned assets.
What changes will residents see?
The council hasn’t confirmed specific departmental changes yet, but early results from similar service shifts were highlighted. For example, Hackney reduced the average wait time for Blue Badge applications from nearly six weeks to under two weeks. Other improvements cited include streamlined business support and the rollout of “Money hubs” for financial advice.
Mr Read also noted that future changes may involve team integrations to offer a more “joined-up” experience for residents.
Is the council addressing any existing service concerns?
Yes. On the same day as the scrutiny panel meeting, Hackney Council announced it would review all rejected disabled parking permit applications from 1 January 2024. The decision follows a finding by the local government watchdog that flaws in the permit assessment process had caused “injustice”.
This action underscores the council’s effort to restore public confidence while undergoing structural change.
