£15million worth of Hartlepool projects to go ahead as chiefs reject calls to review spending plans

Hartlepool Borough Council approved the bulk of its capital investment plan in December last year, before it was finalised at a meeting in February.

The plan included using more than £13million of prudential borrowing, and a matched amount of external grant funding, to look at delivering projects to improve the area, with one example being a new leisure centre at the Waterfront.

A further £2million in prudential borrowing was also later agreed in February to boost the funding available.

However Coun Paddy Brown raised a motion at the recent extraordinary council meeting to halt capital spending, pending a review of the budget situation following Covid-19, which was seconded by Coun Amy Prince.

He said: “I’d like to move a motion that, with the exception of the cemetery [£600,000 work to address flooding at Stranton Cemetery] that we stop capital expenditure on everything pending a new budget, due to the Covid situation. “

Coun Mike Young, deputy council leader, said the motion was ‘bonkers’.

Coun Brown clarified the proposal was not to cancel all committed expenditure, but review the £13million capital funding pot financed through prudential borrowing.

Chief executive Gill Alexander warned the motion could place the council at ‘significant financial and legal risk’ and called for advice from other officers.

Council chiefs said they had already carried out negotiations to borrow the money based on the full project plan previously agreed, and if they were to review it now they would have to put on hold negotiations.

Chris Little, chief finance officer at the council, warned if they backed out now they would likely not be seen as a ‘serious player’ and it could harm future funding bids.

He said: “If there was a review put in place of the capital programme that’s previously been approved by members I would have to put on hold the work I’m doing.

“That then increases the risk that when we do go out to borrow I suspect the market would not be interested in Hartlepool, they would not see the council as a serious player.

“There are a limited number of players who will invest in local authorities, and I’d be worried we wouldn’t be able to secure alternatives, equally I think the company that’s assisted us so far wouldn’t want to get involved and assist the council.”

He also noted the council had received beneficial interest rates to fund the prudential borrowing based on the plans agreed.

Hayley Martin, monitoring officer at the council, added because Coun Brown’s motion would reverse an already agreed motion from within the last six months, which confirmed the capital budget, it cannot be accepted by the council’s constitution.

Ms Alexander, council chief executive, added the budget is earmarked to deliver projects which would help the area post Covid-19.

She said: “A lot of what was in our capital plan is about the animation and the development of the visitor and tourism economy, and we know that’s going to be critical in the recovery strategy.”

Other projects highlighted as part of the capital plan include improvements to the Borough Hall, Town Hall Theatre, Headland Bandstand and PS Wingfield Castle.