£10m Pounds Extra from the government — but Hartlepool local's set to be told they must pay more Council Tax...

Despite £10m ‘funding boost’ from the Government, Hartlepool Residents still face a 4.99% council tax rise according to the councils report..

Whitehall’s funding increase "won’t save Hartlepool taxpayers from higher bills" council report reveals, as Labours Proposed Council Tax Freeze pledge fades...

3rd Feb 2026

Councillors are set to be told that Hartlepool Borough Council will receive what ministers are describing as a substantial increase in funding from central government next year, yet the council's own financial papers make it clear that this will not be enough to avoid a council tax hike, with officers continuing to recommend the maximum 4.99 per cent increase for April 2026..

Under the Provisional Local Government Finance Settlement, Hartlepool’s Core Spending Power – the government’s headline measure of council funding – is set to rise by £10.275 million in 2026/27, equivalent to a 7.7 per cent increase from the previous year. On paper, this places Hartlepool among the better funded upper-tier councils in the country, ranking 37th out of 153 councils for the size of its uplift. #

However, the committee papers set to be put before councillors at a Finance Meeting next week reveal that this so-called funding boost is heavily dependent on local taxpayers footing the bill. Of the £10.275 million increase, £3.947 million of that is assumed to come from a 4.99 per cent council tax rise, with the remainder made up of business rates and the government grant. In effect, almost 40 per cent of Hartlepool’s “extra” funding is expected to be raised locally rather than it being delivered by Whitehall.

Beyond this, Hartlepool Borough Councils also due to receive a £2.457 million increase in its Dedicated Schools Grant (DSG) for 2026/27, money which is specifically earmarked for supporting children with special educational needs and disabilities. While welcome, officers warn this will do little to plug the council's rapidly growing High Needs deficit, which could reach almost £10 million by the end of the current financial year. The DSG increase is said to be 'ring-fenced', meaning it cannot be used to balance the council’s general budget outrun...

Despite these additional allocations, the Medium Term Financial Plan prepared by Hartlepool Borough Councils Chief Finance Officer James Magog makes it clear that the council’s overall position has not materially improved since Labour previously pledged a council tax freeze. At that time, finance chiefs warned a freeze would leave the budget “unlikely to be robust” given rising social care costs, dwindling reserves and growing service pressures.

Councillors would be left having to ignore Officer Recommendations if bills were to be frozen...

The Labour Run Hartlepool Borough Council would be forced to ignore Officer Recommendations in voting through its proposed council tax freeze based on official reports.

The provisional settlement has reportedly not changed that assessment, with the report stating bluntly that, unless there is a significant last-minute uplift in the final settlement, Hartlepool will still need to either make deeper cuts or raise council tax to balance its books. Officers therefore are now said to be “strongly recommending” using the full 4.99 per cent increase available under referendum rules, describing this as the most prudent and financially sustainable option going against Labours pledge to freeze household council tax Bills as a pledge made last year to locals & could lead to the Hartlepool Labour Groups most embarrassing U-Turns if the freeze was to be dropped.

If approved, its claimed a 4.99 per cent rise would generate £2.804 million in additional recurring revenue for the council next year, but even this would not close the entire budget gap, meaning £936,000 of reserves would still need to be used in 2026/27.

The report also highlights the longer-term consequences of not raising council tax.

Finance officers estimate that forgoing a 4.99 per cent increase would in turn, cost the council more than £56 million in lost income over 20 years, a shortfall that would be far more expensive to cover through borrowing.

While ministers have trumpeted the national 5.7 per cent rise in Core Spending Power for councils, Hartlepool Borough Councils finance papers underline a harsher reality: the settlement still leaves the local council reportedly increasingly reliant on council tax to fund its day-to-day services, meaning for those living in Hartlepool despite the headline figures from Westminster, residents are likely to be told they must pay more if the council is to balance its budget, leaving Labours proposed Council Tax Freeze a costly election gamble likely to be felt by residents the year after.