Why Hartlepool council tax payers face near 5 per cent rise despite £1m of extra Government funding

Hartlepool Borough Council officers said both would contribute towards reducing cuts and putting the “budget on a more sustainable basis” and a “firmer financial footing” ahead of continued inflation and energy price uncertainty.

The local authority faces a gross deficit of £10.039million for 2023-24, which was much higher than initial estimates this time last year due to the impact of inflation.

For the 2023-24 financial year, the Government now assumes councils will raise bills by just under 5% in line with referendum limits, which includes a 2.9% rise in core council tax plus a 2% precept for adult social care services.

A report to finance and policy committee on Monday, which will then go to full council the following Thursday for final approval, asks councillors to back the full council tax rise to help balance the budget.

It said: “This will provide additional recurring income of £2.303m, which will help protect services and provide the most robust basis for setting the 2023-24 budget.”

For residents not in receipt of council tax support, a 5% rise would represent an annual increase of £60 for a Band A household.

Officers added they appreciate it is a “difficult decision” to increase council tax.

Councillors will also be asked to back £1.768million in potential savings, which includes implementing an annual charge of £41.50 per household for brown bin garden waste collections from April 2023.

Additionally officers are planning to balance the budget by using one-off funding such as reserves to defer around £2.5million in savings until the following year.

The local authority’s finance plans have been boosted after learning they are to receive £1.188m more than anticipated from the 2023-24 Local Government Settlement, compared to the position forecast in December.

A report said: “The settlement provides a clear opportunity to put the budget on a more sustainable basis than anticipated and to balance the 2023-24 budget without having to make the scale of cuts initially feared.

“It also provides a firmer financial footing for managing the 2023-24 budget as external uncertainty in relation to inflation, gas/electric prices and national pay awards will continue.”