Hackney Council is reducing funding to the voluntary and community sector by £820,000. 

The council told Eastlondonlines that the proposed cut will coincide with an updated voluntary and community sector programme, and not immediately affect any organisations directly as it will not impact any existing grant funding. 

Councillors Chris Kennedy and Joe Walker said in a joint statement: “Like councils across the country, Hackney is facing unprecedented financial pressures. Rising costs, reduced funding from central government, and the growing demand for essential services have left us with no choice but to make tough decisions. 

“One of those is the need to reduce the grants we provide to voluntary and community organisations.

“We understand the importance of the support these organisations provide, and we know this decision will be disappointing for many … but I want to assure residents, and our partners, that we have not made this decision lightly.”

In the statement, they also said that they want to help voluntary and community organisations source funding and partnerships elsewhere. 

The cut comes after Councillor Robert Chapman, cabinet member for Finance, Insourcing and Customer Services, warned that “residents will need to be prepared to see reduced investment in some areas, so that we can protect essential services in others” because of an expected £36m overspend this year, despite already making £14.5m in savings.

The council is set to publish an updated medium term financial plan in November, which will set out how they will manage their finances in the coming three years.