'There are other authorities closer to the edge' - accounts experts Mazars deliver financial verdict on Hartlepool Borough Council

The verdict came from Gavin Barker, from Mazars, a global audit and accounting group, who provided an update on the financial position Hartlepool faces going forward.

He told the Hartlepool Borough Council audit and governance committee that the authority, “like a lot of others, is in a difficult and challenging financial position”.

Yet he noted “there are other authorities that are closer to the edge” than Hartlepool.

Mr Barker added: “There is nothing on our radar to suggest this is a sort of red alert. The council continues to manage through a very difficult situation.

“That’s not something to take too much comfort from, but that is the reality.

“It’s a challenging position, it’s not a rosy picture for a council like Hartlepool and others.”

He added the council has a “number of levers at its disposal”, such as council tax, and Hartlepool’s decision to not increase the levy by the maximum for 2024-25, has “essentially cost the council some resources”.

Councillors voted to increase council tax bills by a total of 2.99% for 2024-25, which was below the maximum 4.99% rise recommended by civic centre finance chiefs.

James Magog, director of finance, digital and IT, added he would agree the council is “not at red alert”.

But his opinion is they are “heading towards” that direction and actions need to be taken.

Councillors also heard Mazars could make recommendations to the council over steps to take although it does not deem that necessary at this stage.

Mr Barker added: “The council has to deliver important and essential services, and there are particular pressures in certain of those services that the council must handle.

“It’s really difficult, there are a lot of uncertainties around the future of government funding and how that will look going forward.”

Councillor Jonathan Brash, chair of the committee, said the decisions “that happen over the next six to nine months are going to be critical for the future of the authority”.

More than a dozen local authorities have been issued with section 114 notices since 2018, effectively declaring themselves bankrupt, including the likes of Birmingham and Nottingham in 2023.