Preparations underway to tackle £7.5million financial black hole in Hartlepool council budgets

Hartlepool Borough Council Finance and Policy Committee is to meet next week to determine savings proposals to be referred to individual policy committees as part of its budget process for the coming year.

This will form part of the council’s “transformation and saving plan” to address the deficit faced over the next three years.

It comes after full council last month approved a core council tax rise of 1.9%, along with a 3% increase in the Adult Social Care Precept, for 2022/23.

The authority previously faced a cumulative deficit of £11.435 million for 2022/23 to 2024/25, with the increases reducing this to £7.523 million.

At the meeting next week councillors will look at initial savings plans from officers, and also identify areas they would be prepared to reduce services and make changes to achieve future budget savings.

A report from Chris Little, director of resources and development, warns the council has already faced reductions in Government funding over recent years, which led to cuts in services and a reduction in the workforce of 20%.

He said: “These measures cannot be repeated and the financial deficit now facing the council means that further service cuts will have to be made.

“This is increasingly difficult to explain to the public, particularly as cuts will continue at the same time as reliance on council tax and the adult social care precept continues to increase.

“This is not unique to Hartlepool – most councils face this challenge.”

The report adds council tax funds 53% of the council’s budget in 2021/22, equating to £42.7million, compared to 32%, equalling £30.8m, in 2013/14.

A three-year budget plan was recommended by the Local Government Association when they reviewed the council’s financial position, which will be carried out in two phases.

Phase one will address the deficit for 2022/23, which needs to be completed by December 2021 to enable savings to be implemented from April 2022, according to officers.

The second phase will involve addressing the deficits for 2023/24 and 2024/25, which will need to be completed and approved by September 2022, to account for issues which will have “longer implementation periods”.

The majority of the £7.5million deficit was front loaded in 2022/23, and therefore councillors previously approved using reserves to phase the deficit over the next three years.

This means the council will face a £2.654million deficit in 2022/23, £2.412million in 2023/24 and £2.457million in 2024/25.

To attend the Finance and Policy Committee meeting on Friday, October 15, residents must phone (01429) 523568 or (01429) 523019 to secure a space by midday on Thursday, October 14.

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