Hartlepool Borough Council tax freeze still planned despite budget pressure warning
Hartlepool's council leader has stressed a council tax freeze is still planned for next year - despite warnings from finances chiefs around budget pressures.
Hartlepool Borough Council officers are currently predicting a £8.572million budget deficit for 2026-27 – which would reduce to £4.3million if planned efficiencies and savings are adopted.
This takes into account the latest funding estimations from the Government while the planned savings will go before the relevant council committees for discussion over the coming weeks.
Council chiefs noted there continues to be a “difficult financial position facing local government as a whole” with pressures including rising children’s and adult social care costs and pay and price inflation.
Local authority leader Cllr Pamela Hargreaves stressed they are still planning to push ahead with a council tax freeze for 2026-27, which was previously announced by the leading Labour administration in June.
This comes despite council finance director James Magog warning that, at this stage, the freeze would mean “it is unlikely the budget can be signed off as robust, given the requirement to utilise significant reserves”.
Labour’s Cllr Hargreaves, speaking at the latest meeting of the finance and corporate affairs committee, said the council tax system is “grossly unfair” on the people of Hartlepool and “at some point we have to make a stand”.
She added: “We are paying more and that is wrong and it needs looking at.
“Our pledge to freeze it is about us recognising that people in Hartlepool are struggling and we cannot keep putting the burden onto them.
“Where we’re at at the moment is it is our view that it should be frozen and I know that’s been questioned on various bits of social media, but that remains the position.”
She added the council and town MP Jonathan Brash continue to lobby the Government over the issue.
Mr Magog’s report noted for a “robust” budget to be achieved the council would either need “significant increased government funding flows” beyond those already forecast, further budget savings or cuts or a council tax increase.
If council tax is increased by 5% for 2026/27, which is expected to be the maximum allowed without a referendum, it would raise £2.804million for the local authority.
Further discussions are expected at the next meeting of the committee in January.