LGA Corporate Peer Challenge – Progress review: London Borough of Hackney

The council undertook an LGA Corporate Peer Challenge (CPC) during November 2024 and published the full report with an action plan. 

The Progress Review is an integral part of the CPC process. Taking place approximately ten months after the CPC, it is designed to provide space for the council’s senior leadership to:

• Receive feedback from peers on the early progress made by the council against the CPC recommendations and the council’s CPC action plan;
• Consider peers’ reflections on any new opportunities or challenges that may have arisen since the peer team was ‘on-site’ including any further support needs; and 
• Discuss any early impact or learning from the progress made to date.

The LGA would like to thank the London Borough of Hackney for their commitment to sector-led improvement. This Progress Review was the next step in the ongoing, open and close relationship that the council has with LGA sector support.

The Progress Review at the London Borough of Hackney took place at the council on Thursday 9 October 2025. The Progress Review focussed on the recommendations from the Corporate Peer Challenge: 

• Recommendation 1 – Explore how this peer challenge and your other external reviews can support and accelerate the mayor’s intent to reset priorities and deliver a sustainable budget in the short and medium term: Use this time and the reviews completed, to support and accelerate the mayor’s intent to reset priorities and deliver a sustainable budget in the short and medium term.
• Recommendation 2 – Accelerate the whole council/system change transformation workstream, creating an explicit path to where the organisation wants to be for the future (new priorities, sustainable financial envelope, ways of working, etc.): Ensure that the one council integrated system is led and modelled by CLT behaviour and that enables pace, and capacity to be  aligned with the council’s transformation ambitions.
• Recommendation 3 – Consider the design of regular structured meetings between the cabinet and Corporate Leadership team (CLT) that anchor the corporate delivery of priorities: Ensure the regular structured meetings between the cabinet and CLT are used to anchor the corporate delivery of priorities and achieve agreed outcomes.
• Recommendation 4 – Clarify the approach to the use of reserves as an in-year solution to budget overspends and ensure there is an understanding of the limitations and risks of this: Given the reserves position and financial pressures that the council is experiencing, revisit the approach to the use of reserves as an in-year solution to budget overspend and ensure there is an understanding of the limitations of this approach.
• Recommendation 5 – Continue with the intention to introduce a new performance management framework: Consider reshaping the council’s performance management framework to provide a more comprehensive and shared overview of performance and outcomes against the council’s strategic priorities.
• Recommendation 6 – Accelerate the current review of council assets and ensure the approach reflects the emerging financial position and new priorities: Ensure all assets are working for the council and the approach taken to future decisions and changes reflects the emerging financial position and new priorities.
• Recommendation 7 – Consider how best to resolve the differing views on the adult social care budget and the need for collective endeavour: There is considerable financial pressure and challenge in the adult social care budget. Work cross council on how best to resolve/address this and embed the commitment for collective endeavour in seeking solutions. 
• Recommendation 8 – Consider how to communicate the plan for the resolution of the cyberattack on council systems and effective use of data. Plan to cover any unresolved or outstanding issues: The 2020 cyberattack on council systems, which affected the majority of council services and access to data, left significant issues with delivering services. Work has been done to resolve issues across service areas, but issues remain and a clear path and timeline for resolution are required to inform and support the workforce strengthening a forward-looking approach.
• Recommendation 9 – Maximise opportunities to work across boroughs and capitalise on areas of economic prosperity e.g. Shoreditch and other business districts, like the City of London, may be able to offer: Maximise opportunities for innovation and investment, working across boroughs capitalising on areas of economic prosperity to realise the political vision for Hackney.
• Recommendation 10 – Use the ongoing review of decision-making and the constitution to more effectively deliver the mayor’s priorities: Hackney should ensure that arrangements continue to serve the organisation well in delivering council priorities and ensure an appropriate level of resilience for the challenges ahead. The ongoing reviews of decision-making and the constitution should be used to ensure more effective delivery of the mayor’s priorities.
• Recommendation 11 – Review member training and support to include chairing skills, support for dealing with casework involving vulnerable residents, and support for member wellbeing and mental health: Explore opportunities to expand member training and support, including chairing skills, support for dealing with casework involving vulnerable residents, and support for members’ wellbeing and mental health. 

Hackney accepted all the recommendations made during the LGA CPC and subsequently produced an action plan outlining the steps the council would take to respond to these recommendations. 

For this Progress Review, the following members of the original CPC team were involved:

• Katherine Kerswell, Chief Executive, London Borough of Croydon
• Cllr Claire Holland, Leader, London Borough of Lambeth
• Stuart Reid, Director Business & Resources, South Tyneside Metropolitan Borough
• Sharon Bridglalsingh, Director of Law and Governance (Monitoring Officer), Milton Keynes City Council
• Megan Hermes, LGA Peer Challenge Manager.

The peer team would like to thank all those that they spoke to as part of the Progress Review for their participation and openness.

The council’s action plan themed the recommendations around their Corporate Transformation objectives: Delivering for Residents, Securing Hackney’s Future and Modernising Together, to help further embed the ambitions of the transformation programme. From the action plan 18 per cent are complete, 33 per cent are on track, 44 per cent are in progress and 5 per cent are not due to start at the time of this report. 

Over the past year, the council has made significant progress, marked by a renewed sense of energy, commitment, and partnership working. A clear reset has been felt across the organisation, supported by a more confident and cohesive Cabinet and strengthened managerial leadership. Significant progress has been made since the LGA CPC and the renewed ambition, confidence and determination was markedly noticeable. However, financial challenges remain a critical concern, with understanding across the organisation still uneven and the largest budget area, Adult Social Care (ASC), insufficiently visible in strategic priorities. Transformation efforts are advancing, including the launch of a new operating model and digital programme. The anticipated savings and benefits are programmed for future years, though the peer team noted confidence in them materialising in due course. Continuing to embed transformation into the organisation’s culture during an election year will require sustained focus, alongside a stronger, data-led approach to demand-led services and ownership of overspends. While progress is evident, particularly in governance and partnership engagement, further clarity and prioritisation will be essential to maintain momentum and deliver long-term financial sustainability.

Theme: Delivering for residents

The peer team heard that the CPC was widely regarded as a reset moment for the council. Staff and political leadership all acknowledged a renewed sense of confidence and commitment. This reset reaffirmed existing priorities while also incorporating additional elements in response to the external political environment, aligning mayoral priorities and transformation goals. While these priorities are broadly consistent and aligned, there remains an opportunity to sharpen focus. 

In line with the peer team's recommendations, the council has successfully embedded the Mayor’s priorities (housing and homelessness, poverty and inequality, and climate change) into annual service planning and strategic reporting processes. These priorities now underpin the council’s transformation programme, providing a clear framework for prioritising service delivery and improving visibility through enhanced performance monitoring. Furthermore, a proactive process has been established to engage all political parties in shaping priorities for the 2026 local election and beyond. This ensures alignment between the strategic plan, service plans, financial position, and administration’s manifesto, resulting in priorities that are both financially viable and responsive to residents’ needs.

Progress toward a sustainable budget continues, supported by the new group director of finance & corporate resources whose approach has been open and visible and well received by staff. However, the peer team noted that while intent and understanding are evident, further work is needed to maintain momentum, sharpen focus, and ensure that the commitment to follow through is fully embedded across the organisation. The pace and prioritisation of this work must further be accelerated which the council acknowledges.

The council also acted on the recommendation to redesign regular structured meetings between Cabinet and the Corporate Leadership Team (CLT) to ensure they are consistently anchored in the corporate delivery of priorities. This included reviewing the frequency, terms of reference, and forward planning of these meetings, resulting in a more purposeful and coordinated approach. The peer team heard multiple times that this change has had a positive impact, strengthening collaboration and improving clarity on shared objectives for both Cabinet members and CLT. In addition to formalising these meetings, the council reviewed internal boards with Cabinet and CLT membership to ensure alignment with corporate priorities and effective governance. These steps have collectively enhanced the council’s ability to deliver on its strategic priorities through improved governance structures and stronger partnership working at the senior level.

The council has taken significant steps to strengthen its approach to performance management, introducing a new Performance Management Framework (PMF) as part of its transformation programme. This framework is designed to provide a comprehensive and shared overview of performance and outcomes against strategic priorities, ensuring a continuous cycle of improvement for residents. Key actions include the creation of standardised operating procedures for services to ensure consistency in reporting and the establishment of business rules for measuring and tracking KPIs, enabling quicker interventions to improve performance. 

The council has also established the Corporate Performance Steering Group to promote good practice and improve accountability across the organisation. In addition, work is underway to develop and refine performance dashboards, which were recently used in Cabinet and Scrutiny meetings for the first time. Early feedback on these dashboards has been positive, and both the council and the peer team recognise this as an important step forward in embedding a performance-led culture.

While the framework is still in its early stages, these developments represent a clear shift towards evidence-based decision-making and improved transparency. The introduction of the PMF, combined with the use of dashboards and governance structures, positions the council to better monitor progress, identify areas for improvement, and deliver on its strategic objectives.

The council has made strong progress in advancing economic development and cross-borough collaboration, as recommended by the peer team. Since the peer review, a new senior officer has been appointed to lead this agenda, bringing renewed focus and energy to the work. The Hackney Economic Development Plan has been published, setting out clear priorities for fostering an inclusive and greener local economy. This plan is supported by targeted engagement with businesses, neighbouring boroughs, and anchor partners, ensuring that Hackney capitalises on areas of economic prosperity. 

The council continues to deliver and expand the Leading Inclusive Futures Through Technology (LIFT) programme, which creates pathways for local residents into the tech and knowledge economy. In addition, work with the voluntary and community sector has progressed, resulting in an updated strategy and improved cross-sector partnership working to strengthen resilience and maximise resources. These initiatives demonstrate a commitment to innovation and investment, with the peer team noting these encouraging examples of cross-borough collaboration that are already delivering tangible benefits.

While these developments represent a significant step forward, the council recognises the need to maintain momentum and ensure that the benefits of economic growth are shared widely across communities. The combination of strategic planning, partnership working, and targeted programmes positions Hackney to deliver on its ambition for inclusive growth and long-term economic resilience.

The council has made a comprehensive response to the governance challenges identified in the peer review, with changes that are already having a positive impact. Full council meetings now focus more clearly on mayoral priorities, and this shift has been widely recognised by those in attendance as improving the effectiveness and relevance of discussions. A review of the constitution has been completed, ensuring that governance arrangements remain robust while enabling faster and more effective decision-making. This review has maintained principles of openness and transparency while introducing practical improvements to support the delivery of priorities.

Importantly, the council has established a clear process for making constitutional changes, providing clarity on how and why amendments can be made. This approach recognises the constitution as a living document, with scope for ongoing review to ensure it remains fit for purpose as the organisation evolves. The peer team noted these developments as a strong and proactive response. 

Securing Hackney’s future

The council has clarified its approach to the use of reserves as an in-year solution to budget overspends, ensuring that both members and officers have a shared understanding of the limitations and risks associated with this strategy which is financially unsustainable. There is consequently more corporate focus upon mitigating and reducing projected in –year overspends. Regular reporting through the monthly Overall Financial Position (OFP) now sets out the impact of reserve usage on the council’s overall financial sustainability, and updated messaging has reinforced the importance of achieving year-on-year balance. The updated Medium-Term Financial Plan (MTFP) presented to cabinet has further expanded on the reserves position, providing greater transparency and clarity with future financial gaps to be closed by savings rather than further drawdowns on reserves.

The Mayor and her administration are very clear on the risks of over-reliance on reserves, and the cabinet lead for finance has established a strong working relationship with the new group director - finance & corporate resources. However, while intent and understanding are evident at the senior leadership level, the peer team noted that although progress has been made, further work is required to embed this understanding and ensure that the organisation fully recognises the financial implications and the urgency of achieving sustainable solutions.

The council has acted on the peer team’s recommendation to review its asset base to ensure alignment with emerging financial priorities. A Non-Core Asset Challenge (NCAC) approach has been agreed, providing a framework for identifying and releasing surplus assets. This work is intended to generate capital receipts that can be reinvested to support transformation and financial sustainability. However, although the approach has been formally adopted, progress has been slower than expected due to challenges with key sites and the political sensitivity of implementation, which has required extensive engagement with residents and occupiers.

Further steps are planned to accelerate delivery. Asset sales are due to be agreed through an upcoming Capital Update, Disposals & Acquisitions Report, with decisions made via formal reports and meetings involving cabinet and the corporate leadership team. This aims to ensure that asset decisions are fully aligned with the council’s long-term financial strategy and transformation objectives. The peer team noted that while the foundations for change have been established, there is a clear need to ramp up pace and prioritisation to realise the financial benefits of this work to aid in the reduced reliance on reserves.

The ASC budget remains the most significant unresolved financial challenge for the council. While there has been progress since last year, moving away from a siloed approach and developing some collective awareness, an overall corporate response or shared understanding of the scale of the issue is still lacking. Senior leaders are clear on the risks associated with the current predicted overspend, but the work underway is insufficient to close the gap, and ownership of the overspend remains limited across the organisation. Politically, despite ASC being the biggest area overspend and therefore budget risk it is not reflected in the current political priorities. Going forward ASC must become a key strategic, corporate and political priority. The monthly ASC Finance Improvement Board, attended by the Mayor, Chief Executive, service heads and lead members from December need to drive this crucial work.

Insourced delivery model is one driver of the expense of the service alongside rising demand and complexity. Although there is interest in exploring alternative delivery models this has not yet been actively investigated. If this is not thoroughly investigated it puts the council in a self-limiting position to achieve affordable service delivery. The peer team highlighted that fundamental questions about approach, accountability, and long-term sustainability need to be resolved urgently. The peer team noted that the council could learn from others in the sector around mixed market models on the basis of finding the most efficient and effective model that ensures financial sustainability. 

Without a clear, shared picture of the financial reality and a stronger commitment to collective action, the council risks continued financial instability due to overspends in this critical service area.

Modernising together 

Transformation work has accelerated significantly since the previous CPC, and this momentum is being felt across the organisation. In line with recommendations, the council has agreed a new Target Operating Model (TOM), which sets out a clear roadmap for organisational change over the next three years. This model defines the council’s future state across strategy, structure, people, processes, technology, assets, and governance, ensuring alignment with strategic priorities and financial constraints. A high-level business case has also been developed to articulate the benefits, risks, costs, and timelines for implementation, providing clarity for staff, residents, and partners on how the council will deliver its transformation ambitions.

While the TOM has only recently been adopted and is not yet embedded, there is strong ambition and recognition of the need for change. Senior leadership is committed to modelling a “One Council” approach, and the clarity of direction is evident. The peer team noted that this work represents a significant step forward in creating an integrated system that enables pace and capacity to be aligned with the council’s transformation goals. Continued focus on embedding the model and maintaining momentum will be critical to achieving the intended outcomes. 

The council has taken meaningful steps to continue to address the impact of the 2019 cyberattack, and there is growing confidence in the solutions being implemented. A Cyber Recovery Plan has been established to ensure clarity across the organisation on recovery priorities and progress. This has been supported by initiatives such as the recent Chief Executive roadshow and Tech Week, which have helped reinforce positive messages and build organisational confidence in the ongoing recovery process.

Despite these advances, challenges remain, particularly around missing data due to the cyber-attack, which continues to affect some services. Housing is preparing to transition to a new off-the-shelf system imminently, and there is strong enthusiasm for this move as a key step toward resolving outstanding issues. While progress is evident and the overall direction is positive, further work is needed to cascade understanding across the organisation and close remaining data gaps. The peer team noted that these efforts represent a significant improvement, but sustained focus will be required to fully embed resilience and ensure long-term data integrity. 

The council has made tangible progress in strengthening member training and support, with further developments planned during the current election cycle. Initial fact-finding has been completed to understand members’ training and development needs, and role profiles for elected positions have been developed to inform personalised training plans. This work will underpin a new training offer that includes induction programmes for the next election cycle, alongside additional support for chairing skills, casework involving vulnerable residents, and member wellbeing and mental health.

Collaboration with the LGA continues through initiatives such as “Be a Councillor,” which aim to encourage participation and improve preparedness for elected roles. Notably, the chairing of scrutiny has already improved, reflecting a positive shift in governance practices and the early impact of these efforts. While the full implementation of the new training programme is scheduled for the next election cycle, the progress to date demonstrates a clear commitment to equipping members with the skills and support needed to fulfil their roles effectively.

The LGA would like to thank the London Borough of Hackney for undertaking a CPC Progress Review. We appreciate that senior managerial and political leadership will want to reflect on these findings and suggestions in order to determine how the organisation wishes to take things forward.

Under the umbrella of LGA sector-led improvement, there is an on-going offer of support to councils. The LGA is well placed to provide additional support, advice and guidance on a number of the areas identified for development and improvement and we would be happy to discuss this. 

Mona Sehgal, Principal Adviser for London is the main point of contact between the authority and the LGA and her e-mail address is [email protected].