Hartlepool Council’s Chief Finance Officer Warns: “I Cannot Sign Off This Budget as Robust”...
- teessidetoday
- Nov 26
- 4 min read
Hartlepool Borough Council's Chief Finance Officer Sounds Alarm Over the Council's Budget, stating he cannot sign off the next years financial proposals without Major Action being taken....
26th November 2025
Hartlepool Borough Council's facing one of its most serious financial warnings in years, after the council's own Chief Finance Officer sensationally admitted that he cannot currently sign off the 2026/27 budget as “robust”.
It comes after a report was sent to councillors as part of the Medium Term Financial Plan (MTFP) covering 2026/27 to 2029/30 financial year, sparking questions as to whats gone wrong ?
A £8.5 Million Black Hole Before Savings Are Even Counted
According to the councils Medium Term Financial Plan (MTFP) report, Hartlepool Borough Council is facing a forecast £8.572 million deficit for 2026/27 — and a huge £20.591 million gap across the next four years, a deficit that would almost undoubtedly lead to the council filing for Section 114 Bankruptcy.
Even after the council identified what it claims to be as much as £4.1 million pounds worth of cuts for next year, there's still said to be a £4.3 million hole & no clear plan to fill it.
In the report, The Chief Finance Officer made it clear:
“Based on the current information presented, it is unlikely the budget can be signed off as robust.”
Children’s Services: The Crisis Driving the Financial Meltdown...
The report makes it unavoidable that Children’s Social Care is the main pressure point, with external children’s placements now said to be costing the council £12 million per year for just the 25 most expensive cases, with the average external placement costing £7,010 per week, with some reaching as much as £23,000 per week. Hartlepool’s number of children in care continues to rise above national and regional averages — a trend said to be driven by high poverty levels.
Even after the council reportedly pumped £6.9 million extra into Children’s Services for 2025/26, the service is still overspending by a colossal £6.195 million this year alone.
Yet, incredibly, the draft budget for 2026/27 does not allow for any growth in Children’s Services demand next year — a decision the Chief Finance Officer says is deeply risky and unrealistic.
Reserves: Nearly Gone !
Reserves that once sat at around £56 million back in 2018 are now forecast to collapse to just £13 million over the coming years. The Budget Support Fund — the pot used to fill short-term gaps — will drop to just £3.4 million, less than the amount needed to plug next year’s deficit alone.
The report warns that this leaves Hartlepool dangerously exposed to:
in-year overspends
emergencies
further social care pressures
the looming £14 million DSG (schools funding) deficit that the government may soon force councils to carry on their books
The message is blunt: reserves are nearly gone, and continuing to rely on them is no longer sustainable...
Government Funding Reform Won’t Save Us, report concludes...
Fair Funding 2.0 — the long-awaited shake-up of council funding — was expected to benefit deprived northern towns like Hartlepool. But the council report has concluded that opposite is said to be happening.
Based on consultation papers, Hartlepool is only a “modest beneficiary”, far lower than expected, and gains are likely to be phased over three years. Many other North East councils actually lose funding under the new model, With the report making it all but certain that there will be no bailout coming from Whitehall.
Labours Political Decision to Freeze Council Tax Makes the Hole Even Deeper
Despite the obvious financial risks, its claimed The Labour administration in Hartlepool is set to press ahead with a freeze in Council Tax Bills for 2026/27, with that decision set to remove £562,000 of lost revenue for every 1% not applied & as much as £2.804 million pounds in lost revenue if the council refuses the full 5% rise...
Over 10 years, the move represents around £30 million pounds in lost income — money that could have stabilised essential services.
The Chief Finance Officer is clear:
Setting a budget without a Council Tax rise is not recommended unless significant extra government funding is received.
The Three Choices Hartlepool Now Faces
The Councils Section 151 Officer spells out the only three ways the council can deliver a legally balanced budget:
1. Major additional government funding
Unlikely based on current estimates.
2. Further severe cuts to services
On top of the £4.1 million already proposed, leaving services dangerously overstretched.
3. A Council Tax increase for 2026/27
Despite political promises to freeze it.
Without one — or more — of these options, the councils Chief Finance Officer warns the budget cannot be signed off as financially sound.
Hartlepool Borough Council Is Now on Financially Dangerous Ground...
Years of rising demand, soaring children’s care costs, inflation, frozen Council Tax, and falling reserves have all collided to create the perfect storm. The council’s top finance officer has effectively told councillors:
Hartlepool cannot continue as it is. The budget is not safe, and without serious action, the council risks heading toward crisis.
Its said to be the clearest warning yet that Hartlepool Borough Council is moving into the same territory as other local councils that have already issued “Section 114” bankruptcy notices...
The next few months will decide whether Hartlepool avoids joining them.
