Hartlepool Borough Council Faces Significant Loss of Income Following Venator Collapse — With Up to £500,000 at Risk...
- teessidetoday
- Nov 17
- 3 min read
Hartlepool Borough Council envisages a loss of Business Rates Income of around half a million pounds in reports set to be put before council officials...
17th November 2025
Hartlepool Borough Council is said to be bracing itself for a major hit to its finances following the collapse of Venator Materials UK Ltd in September 2025 & was said to have been one of the area’s long-standing industrial employers.
According to the Council’s own financial documents, Venator entering administration will directly impact the local councils income from Business Rates, potentially wiping out hundreds of thousands of pounds from the councils Collection Fund.
This comes at a time when the Council is said to be forecasting an eye-watering £3.26 million overspend this year, with reserves projected to decline sharply and demand for services ballooning.
How Much Money the Council Stands to Lose
Councillors sitting at Hartlepool Borough Councils Finance & Corporate Affairs Committee will reportedly be told next week that there will be a £250,000 loss in the current year’s Collection Fund, with a projected £500,000 loss for future full-year impact...
This loss comes exclusively from the Business Rates (NNDR) that Venator would normally be liable to pay.
The report states:
“The recent news that Venator Materials UK Limited has entered administration will result in a circa £0.250m loss to the council in the current year’s collection fund and a full year loss of circa £0.500m.”
Not Yet Included in the Council’s Medium Term Financial Plan — Leaving A Dangerous Uncertainty...
One of the most concerning parts of the report is that its claimed the income loss has not been factored into the Council’s Medium Term Financial Plan (MTFP).
“It should be noted that this has not been included in the MTFP position pending any positive news regarding future operation.”
This is essentially the Council hoping that something might turn up — whether a rescue deal, new investor, or a swift restart of the plant. That may happen, but as things stand, there is no guarantee whatsoever.
If no buyer is found, the councils Medium Term Financial Plan must be updated in January, meaning:
A £500,000 black hole will appear in the councils 2026/27 budget
Cuts or savings will have to be identified
Pressure on reserves will increase even further
Other services may have to absorb the loss
This is on top of the already serious risks outlined elsewhere in the financial report — including the possibility of a Section 114 “bankruptcy” notice in future years due to the spiralling Dedicated Schools Grant deficit.
Why Venator’s Collapse Matters So Much
Business rates are one of the Council’s most important income streams. When a major employer folds, the financial impact is felt immediately and sharply.
In Venator’s case:
It occupied significant industrial land
Paid substantial annual rates
Supported hundreds of jobs before earlier restructurings
Its administration means:
The site may become non-operational
Rates may no longer be billable
The Council may be forced to 'write off' amounts it has no realistic chance of collecting as part of any rescue deal for the business...
Worse still, the report warns the business rates loss could rise further if the site remains empty long-term or becomes derelict.
With mounting overspends, a SEND deficit that threatens bankruptcy, and now the loss of up to £500,000 in Business Rates, Hartlepool Council is edging closer to a financial tipping point.
The potential loss of Venator — one of the area’s few remaining industrial giants — only deepens the storm clouds gathering over Hartlepool’s financial future & pours cold water over the Labour held councils plans to freeze Council Tax Bills, as the financial reality of a council sinking under its financial liabilities becomes ever more apparent.
