Cleveland Fire Authority Facing £6m Pound Deficit as Council Tax Increase Looms....
- teessidetoday
- Nov 27
- 4 min read
Teesside Fire Authority Admits It Can’t Balance Budget Without Raising Your Council Tax...As a £5 Pound Increase Looks set to hit Locals in the pocket.
27th November 2025
Cleveland Fire Authority is warning of a major financial crisis over the next three years, with documents revealing the embattled institution faces a budget deficit of up to £6 million pounds, unless Council Tax is increased and substantial savings are made.
In a report seen by the Teesside & Durham Post, its claimed that even with a proposed rise in Council Tax, the Cleveland Fire Authority is still said to be facing nearly £3 million in shortfalls that must be addressed.
The figures come from the latest Medium Term Financial Strategy (MTFS) report which is set to be presented to the Executive Committee on 28 November 2025. It outlines the scale of the financial pressure building within Cleveland Fire Brigade and sets out what options remain on the table.
Deficit That Could Hit Core Fire Services
According to the report, CFA is staring at deficits across the next three financial years (2026/27 to 2028/29). The severity of the shortfall reportedly hinges on whether the Authority approves a Controversial Council Tax increases set to hit locals in the pocket with an annual £5 increase on the average Band D Council Tax bill.
According to the report, its claimed without any Council Tax increase: CFA faces a deficit of £6.014 million, with a £5 Council Tax increase bringing that deficit down to £2.973 million. Cleveland Fire Brigades deficit is said to represent up to 15.8% of the current budget, a level that—according to the Authority itself—cannot be addressed without either raising Council Tax or making cuts to frontline services.
Council Tax Rise: CFA's First Line of Defence, but its likely not to go down well with locals.
The strategy to deal with the deficit is claimed to be being built around three pillars, the first being a clear recommendation to use “available Council Tax flexibility” to raise additional recurring income. Government policy has confirmed that Fire Authorities can increase Band D Council Tax by £5 per year, and CFA is signalling that failing to take advantage of this now will leave it unable to claim it is underfunded.
The Authority is expected to make its formal Council Tax decision in early 2026, once the national funding settlement is confirmed, however its been claimed that even if the £5 increase was to be formally approved, CFA still faces a £2.973 million deficit. To manage this, the report confirms that the Brigade will need to use £1.345 million from its Budget Support Fund in 2026/27, with a major savings plan having to be produced by July 2026.
Its claimed CFA will also need to undertake at least £2.150 million in service cuts or efficiencies which would need to be implemented from April 2027, with a further £0.823 million in savings having to be delivered by April 2028.
The report indicates that, even with higher Council Tax bills, CFA expects service reductions, structural changes, or non-essential functions being scaled back considerably. .
Reserves Draining Fast – Financial Flexibility Shrinking
The report also lays bare just how quickly CFA’s reserves are being depleted. In similar scenes to Hartlepool Borough Councils financial crisis its been found that total earmarked reserves for CFA are now forecast to collapse from £13.172 million in 2025 to just £2.693 million by 2031.
Once these reserves are gone, the CFA warns it will have “significantly less financial flexibility” and a much higher risk of spending cuts if unexpected costs arise.
This trend is one of the document’s clearest warnings Cleveland Fire Brigade is losing the cushion that has protected it from cuts in previous years in very much the same scenario now faced by the now crippled Hartlepool Borough Council.
Capital Spending Cuts Already Underway
To reduce pressure on the budget, the CFA claims its already trimming investment in infrastructure, a new Asset Management Plan has been reviewed, and proposals are said to include:
Scrapping new training towers planned for Stockton, Hartlepool, Loftus, Coulby Newham and Yarm, releasing £630,000.
Delaying or altering planned fire appliance purchases (subject to future review).
Identifying up to £1 million in required upgrades to Fire Behaviour Training Units, which currently have no allocated funding.
With critics claiming this shows CFA is already shifting money away from long-term infrastructure to address short-term funding gaps.
Waiting on Westminster – But Not Expecting a Miracle
CFA notes that the Government’s latest “Local Government Finance Policy Statement” may provide some additional funding for Fire Authorities through a new national funding floor. However, CFA makes clear:
The impact on Cleveland won’t be fully known until December.
With even optimistic forecasts failing to erase the deficit.
The Government expecting CFA to use all Council Tax powers available before claiming hardship, meaning CFA cannot rely on Westminster to solve its financial problems.
What It Means for Local Residents
Despite claims from the Labour held Hartlepool Borough Council that Council Tax bills are to be frozen, unless something changes, residents in Hartlepool, Stockton, Middlesbrough and Redcar & Cleveland are likely to face in any event:
✔ A £5 annual rise on a Band D Council Tax bill
(less for Band A, more for higher bands)
✔ Potential cuts or restructuring of fire services by 2027
✔ Reduced reserves and increased financial risks
meaning less protection from unexpected shocks
✔ Delays or cancellations of major capital projects,
including training towers and equipment modernisation
The report closes with a stark warning that even with Government changes appearing “more positive” than earlier proposals, Cleveland Fire Brigade must still prepare for multi-million-pound deficits and long-term funding pressures.
For residents, councillors and firefighters, the next few months—and the funding settlement in early 2026—will shape the future of fire and rescue services across Teesside for years to come.
Have Your Say !
Do you support an Increase in Council Tax for Cleveland Fire Authority ?
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