News

Five government departments have issued draft directions to Hackney Council under new powers. The directions require service improvements in social services, education, waste management, and housing benefits, and a "tough" financial strategy to balance the council's budget.

The action represents the first ever use by the government of intervention powers under the Local Government Act 1999. Hackney has 14 days to make representations to the government on the draft directions.

Hackney's leader, councillor Jules Pipe, said changes had taken place and progress had been made. He added: "The draft directions reflect the discussions we have been having with government and incorporate many of our suggestions for moving forward."

The directions - intended to "safeguard front-line services" and "tackle a legacy of financial mismanagement" - include: production of a strategy to balance the council's budget and an action plan for a new system of financial management; key staff recruitment and addressing skills gaps in procurement and contract management; and development of Best Value reviews for older people's services and mental health services.

"The government is simply not prepared to let the present situation continue," said transport, local government and the regions secretary Stephen Byers.

In June Byers had said he was "minded" to use his intervention powers subject to advice from the Audit Commission. In July a report by the commission recommended government intervention.

The draft directions have been issued by the following government departments: Transport, Local Government and the Regions; Health; Work and Pensions; Education and Skills; and Environment, Food and Rural Affairs.