Cleveland Fire Authority Facing £2.97 Million Budget Black Hole...

CFA's head offices in Hartlepool

Cleveland Fire Authority (CFA) is warning of a looming £2.97 million budget deficit over the next three years — a gap that could force difficult decisions on services and staffing unless government funding improves according to officials....

24th October 2025

Cleveland Fire Authority has been warned if faces some "difficult decisions" after the latest financial reports put before its full committee painted a bleak financial outlook for the embattled Teesside authority.

According to the Medium-Term Financial Strategy (MTFS) 2026/27–2028/29, discussed at the CFA's meeting on the 17 October 2025, the shortfall reflects a combination of soaring pay and inflation costs, falling government support, and Cleveland’s weak local tax base.

Even after applying the maximum permitted £5 annual Council Tax rise, the Authority reportedly now forecasts deficits of £1.35 million in 2026/27, £805,000 in 2027/28, and £823,000 in 2028/29, totalling £2.973 million — the equivalent of 7.8% of its current annual operating budget. Without any Council Tax increase, its claimed the deficit would rise to more than £6 million, or nearly 16% of its budget.

Years of Cuts Said to be Leaving Little Room to Manoeuvre

The Authority has reportedly already endured deep cuts in previous years, including a 33% cut in wholetime firefighter posts — from 494 down to 331 — far higher than the national average reduction of 25%. It also permanently budgets for just 97% of its pay bill, saving £900,000 annually, but leaving little headroom for vacancies or illness.

Cleveland’s Fire Authorities financial weakness are made worse by what's claimed to be its heavy dependence on central government grants, which make up 57% of its core funding, compared to a national fire service average of 40%, According to the report only 43% comes from Council Tax, one of the lowest proportions in the country, leaving the Authority more exposed to funding freezes from Westminster.

Funding Reform Could Make Things Worse

CFA's report warns that the government’s forthcoming Fair Funding Review, which is due to take effect, is likely to make matters worse. Analysis by the National Fire Chiefs Council (NFCC) shows that while some fire services could see their funding rise by up to 14% over three years, others — including Cleveland — are expected to face real-term cuts.

The NFCC has condemned the new funding proposals, warning they would lead to further firefighter reductions and “large-scale service cuts”. Cleveland’s Chief Fire Officer is already said to have written to ministers raising concerns that the review will “significantly redistribute funding between fire authorities” at a time when fire and rescue budgets are already stretched.

Record Incident Levels, Shrinking Budget

Cleveland now reportedly faces the highest operational demands of any English fire service according to reports.

National figures show the Authority recorded the highest number of incidents per 100,000 residents in 2024/25, with local figures for early 2025 showing a 64% year-on-year increase. Despite that, its financial resources remain among the weakest.

The MTFS warns that “increases in Council Tax will not be sufficient to fund budget pressures arising from national pay awards and inflation” — and that without significant reform, “the Authority will continue to face significant annual budget deficits.”

Reserves, Tax Rises, and Possible Cuts

If ministers fail to improve funding allocations later this year, its claimed Cleveland Fire Authority may have no choice but to look at further savings and even possible service reductions, despite what's claimed to be an already stretched workforce, with the figures painting a stark picture that by 2028/29, government funding to Cleveland Fire Authority is forecast to fall by £2.4 million, even as costs rise by nearly £3 million due to pay and inflation, with Teesside’s firefighters being asked to do even more — with even less.