Government Fair Funding Review: Why Hartlepool Borough Council Is Set to be Much Better Off....
- Jan 5
- 3 min read
Fair Funding Set to Bring Millions of Pounds to Hartlepool Can Hartlepool Council Still Claim It’s Broke?
5th Jan 2025
For years, Hartlepool Borough Council's said it simply does not get enough money from central government to run its local services properly. That argument is about to change with documents seen recently by the Teesside & Durham Post revealing Hartlepool Borough Council is set to be millions of pounds better off under the governments Fair Funding 2.0.
The new Government funding plans under the Fair Funding Review show that Hartlepool is set to receive millions of pounds more every year than it would have been given under the old system. According to Government funding statements seen by our reporter, Hartlepool Borough Council is now expected to receive:
£31.6 million extra in 2026/27
£41.9 million extra in 2027/28
£45.7 million extra every year from 2028/29 onwards
The money is also said not a one-off grant either, but ongoing funding, built into the council’s budget year after year. In simple terms, once Fair Funding is fully in place, its claimed Hartlepool Borough Council will be around £45 million a year better off than it would have been under the Governments previous funding settlements.
Why is Hartlepool gaining?
The new system gives more money to areas with:
High deprivation
Greater social care needs
Poor health outcomes
A low council tax base
With Hartlepool reportedly ticking all of those boxes, its claimed Hartlepool is set to become a big winner under Fair Funding & likely to be a huge sigh of relief for the towns labour MP & councillors, who are all fearing a Reform UK tidal surge in the upcoming May 2026 Local Elections.
What does it mean for the council’s finances?
The improved funding formula means Hartlepool Borough Council is set to be in a much stronger financial position than it is now, with concerns made previously by the councils finance chief that the governments fair funding review would not go close to addressing the councils budget deficits, especially if the Labour controlled council sought to plough ahead with its 2026/27 Council Tax freeze.
The level of extra funding should in effect, Take pressure off day-to-day services, Reduce the need for “emergency” savings & Make long-term financial planning far easier, however, it does not mean the council will be swimming in cash, but it does mean the argument that Hartlepool Borough Council is financially “on the brink” because of underfunding becomes much harder to justify.
What about Labour’s promise to freeze council tax in April 2025?
Labour Councillors currently in control of Hartlepool Borough Council have said that they intend to freeze council tax bills for local residents in April 2026.
The key point is this: Fair Funding certainly strengthens Labours promise to freeze household council tax bills. With large increases in Government funding on the way, councils like Hartlepool will certainly be less dependent on council tax rises to balance their budgets, however, it would look more like a political choice, especially in the face of Labour being set to potentially lose swathes of seats in the upcoming local elections to Reform.
So will council tax be frozen?
With the news that Hartlepool is expected to do 'quite well' out of the new funding proposals, there's now no financial excuse for Hartlepool Borough Council to rule it out in advance. Council Chiefs had previously warned that they may not be in a posotion to sign off the councils finances as 'robust' if the Labour run council were to freeze council tax bills, however in the face of the signifciant incomoing increase in funding, the claim it would be detrimental to the councils finances becomes much harder to justify.
We will have to wait until next month before we know whether bills will be frozen
Times certainly running out for Hartlepool Borough Council to make its decision on whether to freeze Council Tax bills, however, the reality is HBC is set to be tens of millions of pounds better off under Fair Funding over the next 3-5 years.
That changes the conversation completely.
If residents are still to face service cuts or council tax rises in the years ahead whether that be under a labour held or Reform council, the question will no longer be
“Is Hartlepool underfunded?”
It will be:
“Why, with all this extra money coming in, are local people still being asked to pay more?”
And that is a question the council – and local politicians – will need to answer.
