Full Council approves budget deficit strategy

A meeting of Full Council on Thursday (September 30th) voted in favour of annual Council Tax increases in line with national referendum limits in 2022/23, 2023/24 and 2024/25.

The strategy had been recommended by the Finance and Policy Committee.

Full Council agreed to an increase in Council Tax of 1.9% (subject to confirmation of a 2% referendum limit) and a 3% increase in the Adult Social Care Precept for 2022/23. (The precept was deferred from 2021/22 as councils had flexibility to implement it either this year or next. Most implemented the precept increase in the current year as average Council Tax increased nationally by 4.4%, but Hartlepool councillors opted for a freeze.)

Indicative Council Tax increases of 1.9% for 2023/24 and 2024/25 were also agreed.

Councillor Shane Moore, Leader of the Council, said: “The truth is the Government left us with very little choice but to make this very difficult decision.

“National funding changes over recent years have seen the burden of funding for local services shift from national grant to Council Tax. In the current financial year, 53% (£42.7m) of Hartlepool Borough Council’s recurring income is coming from Council Tax, compared to 32% (£30.8m) in 2013/14. Over the same period, general grant funding has decreased from 53% (£50.7m) to 24% (£19.1m).

“The proposed increases in Council Tax will generate recurring income that will reduce the deficit from £11.4m to £7.5m. The alternative would be to address all of the deficit by cutting services.

“Whilst £7.5 million worth of budget cuts are neither great nor palatable, they have got to be better than the devastation that £11.4m worth of cuts would bring to this town.”

The Council now intends to develop a Transformation and Savings Plan that will enable it to take a phased, three-year approach to tackling the remaining deficit and proposals will be considered over the coming months.

The Council recently sent a letter to then Secretary of State for Housing, Communities and Local Government Robert Jenrick calling for an overhaul of the Council Tax system and a fairer funding deal, while councillors also recently agreed to approach Hartlepool MP Jill Mortimer to seek her support for their campaign.

Councillor Moore said: “It is clear from the response that the Government expects authorities to increase Council Tax  and the Adult Social Care precept to fund local services – including supporting our most vulnerable adults.”