Hartlepool Borough Council’s Finances: A Worrying Overspend and the Need for Urgent Action....
- teessidetoday
- Nov 20, 2024
- 5 min read
Council forecasting an in year budget overspend of £1.67 Million Pounds, as deficits in council departments continue to spiral out of control.
20th November 2024
Hartlepool Borough Council's troubling financial position is reportedly worse than originally anticipated as its claimed this year, the council's forecasting an in year overspend of £1.67 million, even after dipping into its Budget Support Fund to the tune of £3.166 million.
Its been claimed in a council report that without that extra cash taken from he councils dwindling financial reserves, the gap would have been an eye-watering £4.836 million, meaning the council is spending far more than it can afford.
While council leaders claim to be "taking action", critics claim the reality is very much clear: Hartlepool’s finances are in a mess, and taxpayers are being left wondering just how things have gotten this bad.
A Grim Financial Picture
Children’s Services: Has reportedly published figures to show that its now forecast to overspend by a staggering £5.88 million, up from £4.79 million in just three months. The sharp rise is said to be due to more children needing expensive external care placements, with private providers charging sky-high fees. This isn’t unique to Hartlepool, but the lack of control over these costs raises serious questions about planning and management.
Temporary Accommodation: Homelessness is said to be putting more pressure on the budget, with rising costs for temporary housing. This issue isn’t going away anytime soon and will likely worsen if proactive measures aren’t taken according to the council report.
Savings Targets Have Been Missed: The council aimed to save £1.885 million this year. So far, its claimed just 76% of the target has been achieved, with over £440,000 of those savings unlikely to materialise at all. For example, plans to start charging for the Telecare service have been delayed, leaving a £240,000 shortfall in the councils budget this year.
Whilst some departments have managed to stay on track or even report an underspend, the overall picture is said to be "grim". The overspend being reported in some council departments isn’t just a small blip—it’s said to be a sign of deeper, systemic problems.
Its Pointing to a Serious Failure of Leadership?
Council leaders have reportedly resorted to "strong messaging" to staff, urging them to cut back on non-essential spending and think twice before filling vacancies, however critics claim the councils failure to implement departmental spending caps is whats actually exacerbating the councils financial problems & that top heavy management in the councils senior directorship team, a sector whcih reportedly trousers nearly a million pounds a year in public funds in salaries & pension contributions is seemingly "not up to the job" in dealing with the 'real world' financial pressures the councils said to be facing.
There even resorting to holding training sessions on how to save money !
Additionally, its claimed Training sessions for budget managers have been set up, and spending efficiency measures reinforced, but critics claim these measures are simply "too little, too late" and that this level of scrutiny should have been applied earlier, with local taxpayers ultimately being the ones paying for the council's lack of foresight.
Children’s Services is reportedly the biggest financial headache for the council. The cost of caring for vulnerable children is rising, and whilst no one disputes the importance of this work, the way it’s being managed reportedly leaves much to be desired. External care providers are said to be charging premium rates, and the council appears powerless to negotiate better deals leading to even the towns Labour MP stepping in by raising the issue recently in parliament.
Homelessness: A Growing Concern
Temporary accommodation costs are said to be yet another growing burden. As more people find themselves without a roof over their heads, the council is said to be spending more on housing them in temporary accommodation. This is a short-term fix for a long-term problem, and without effective intervention, these costs will only escalate, with critics claiming the recent influx of homeless applicants being shipped up from councils across London Boroughs has only added to the councils financial pressures, as well as taking up what little temporary accommodation was available to locals who are presenting themselves as homeless.
Numerous Missed Opportunities
One of the most frustrating aspects of the council’s finances is its inability to deliver on planned savings. When budgets are tight, every pound matters, yet nearly a quarter of the council’s savings plans are already considered to be unachievable. This level of inefficiency doesn’t inspire confidence in those managing public money which many claim again points to failed leadership by its Managing Director, who's said to be coming under increasing pressure to deliver results.
For residents of Hartlepool, this level of financial mismanagement is said to be having serious consequences. If the council can’t control its spending, it will eventually have to look at increasing council tax, cutting services, or borrowing even more money to keep itself afloat—all of which will undoubtedly hit local taxpayers in the pocket.
It’s also worth noting that the Budget Support Fund, which is being used to plug this year’s gap, won’t last forever, with even the councils auditors raising concerns that Hartlepool Borough Councils not doing enough to increase its financial reserves, with the very real risk that in just two years time, those financial reserves could be exhausted & plunging HBC into bankruptcy.
Locals & pressure groups sounding their voice for change at Hartlepool Borough Council claim the situation demands answers.
Why is the council consistently overspending?, What's being done to hold departments accountable? And most importantly, what’s the long-term plan to bring the budget back under control?
Its claimed by some that whilst strong messaging to staff is a start, but it doesn’t fix the root problems, with a deep cycle of overspending, missed targets, and vague promises of improvement all said to be shining the spotlight on a failed senior management team at HBC, & increasing calls for their salaries to be capped (or even reduced) until the financial situation improves. .
It simply cant go on like this, one local resident told HBC Exposed.
Hartlepool Borough Council’s financial situation is dire, and taxpayers are right to be concerned with one local resident worried that a Council Tax rise in April could leave him being unable to pay other essential bills in what they claim is locals "paying the price for repeated managerial failures"...
Whilst its claimed steps are being taken to address the issues, they fall far short of what’s needed.
The council must act decisively to get its house in order, or residents are likely to face the consequences through higher Council Taxes and ever more reduced services.
And whilst Hartlepool’s residents work hard for their money. Many say It’s high time the council worked just as hard to protect it....
