'Efforts made across the council' praised as Hartlepool Borough Council 2023-24 overspend is revealed

Hartlepool Borough Council officers have reported the final “general fund revenue outturn position” for 2023/24 is a net overspend of £612,000.

This is an improvement of circa £2million from the £2.616million predicted at the end of December and around £3.6million better off than the £4.228million forecast in September.

James Magog, director of finance, IT and digital, said while an overspend is “disappointing”, the council introduced “successful” measures during the year to help keep the gap lower than first estimated.

Speaking at the latest meeting of the finance and policy committee, he added: “I think the improvements reflect the efforts made across the council to address the budget position.”

Actions included introducing non-essential spending restrictions alongside increased spend control measures and monitoring.

The meeting also heard the council benefited from increased treasury investment returns, a business rates levy distribution from government and a VAT refund, which supported the improved position.

The main area contributing to the council’s budget pressures was a reported overspend of £4.946million in children’s and joint commissioning services.

Officers noted this comes as the number of children in the council’s care requiring residential placements continues to increase, as does the complexity of needs and placement fees.

The meeting heard children’s social care “is a big issue” for local authorities in the North East, with Hartlepool’s spend increasing over the past three years from £25.3million to an estimated £35million in 2023-24.

The current average cost for a weekly placement is over £6,000, which has increased by more than 40% over the last three years.

The overspend will be covered from the council’s budget support fund reserve.