Growth in executive housing in Hartlepool brings in £2.5m recurring council tax income

Hartlepool Borough Council chiefs praised how the authority has managed to increase its council tax base since 2013/14.

From 2013/14 to 2020/21 the council tax base has risen on average by 398 properties each year, compared to an average growth of 141 between 2004/05 and 2012/13.

The council tax base is set annually and in overall terms converts the number of properties in the eight property bands (A to H) into band D equivalents.

It also reflects statutory discounts and the level of the local council tax support scheme, which provides discounted council tax to those facing financial hardships.

Council finance chiefs also noted since 2004/05 there has been an increase in the more ‘executive housing’ provided by bands E to H.

They said this increase has provided additional recurring council tax income in 2020/21 of £2.465m, and without this additional income the council would have faced even higher budget deficits.

Cllr Shane Moore, Hartlepool Borough Council leader, speaking at the finance and policy committee meeting, praised the beneficial impact the growth has had.

He said: “For me it is just good to see that we have still continued to have a significant amount of growth in the borough over the past couple of years, and importantly rebalancing that council tax base which is vitally important for our budget.”

Council officers noted there are around 44,000 properties in the borough, which equates to around 25,000 band D equivalents.

This is because 77.4% of properties are in bands A to C, 9.9% are in band D and 12.7% are in bands D to H.

In comparison in 2004/05, 81.6% of properties were in bands A to C, with 9.1% band D and 9.3% in bands E to H.

Chris Little, council director of resources and development, said Hartlepool’s council tax base growth has been ‘above average’ compared to others in the Tees Valley, which has had a positive impact on the area.

However he warned trends in relation to less people needing the local council tax support (LCTS) scheme are to reverse next year, due to the impact of Covid-19.

He said: “I think we all recognise in the context of the budget that growing housing is vital. It will help the financial sustainability of the council.

“Historically since 13/14 up to the current year when we set the tax base, the split of why that change has happened, 64% of the growth was driven by new properties and 36% was because over that period we’ve seen a reduction in local council tax support claimants.

“I think that really reflected a better economic position over that period than at the start of 13/14.

“Some of those trends in relation to LCTS have been significantly reversed in the current year however in a very short, short period.”

Support your Mail and become a subscriber today. Enjoy unlimited access to local news, the latest on Pools and new puzzles every day. With a digital subscription, you can see fewer ads, enjoy faster load times, and get access to exclusive newsletters and content. Click here to subscribe.