Middlesbrough Blinks First: Teesside’s Council Tax Hike Domino Effect?

Middlesbrough Borough Council becomes the first town council on Teesside to announce its raising Council Taxes by almost 5% in scenes that are likely to be repeated across the region...

28th Nov 2024

Middlesbrough Borough Council's become the first local council on Teesside this week to officially announce its set to council tax bills in the town by almost 5%—an ominous move that's reportedly likely to set the tone for similar decisions across the region.

The announcement comes as the council scrambles to address millions of pounds worth of budget overspending. With Middlesbrough BC last year having to seek emergency funding from the government to plug its significant budget shortfalls, where its now reportedly faces the challenge of having to make approximately £7 million pounds in savings over the next year to stave off a fiscal disaster. Alongside the tax rise, its claimed residents will also see an increase in the cost of services the council offers such as parking fees in council-managed areas.

Hartlepool’s Financial Woes Mirror the Crisis

Hartlepool BC is looking to raise household council tax bills by 4.99%, in a move that mirrors nearby Middlesbrough Council.

Hartlepool Borough Council, meanwhile, reportedly finds itself in similarly troubled waters. Projections suggest the council faces a three-year budget overspend of between £10 million and £13 million pounds, forcing it to consider following Middlesbrough’s lead with a 4.99% council tax increase. Such a move, according to council reports would generate an additional £2.625 million pounds in revenues, but still leave a further £3 million in required savings to balance the books.

Much of Hartlepool’s financial strain reportedly stems from runaway costs in its Children’s Services department, where overspending has reportedly reached unsustainable levels. However, the now Labour-controlled council faces a political conundrum, where its claimed whilst in opposition, Labour consistently rejected council tax increases proposed by the previous Conservative-Independent coalition. Now, with Labour at the helm, its claimed a tax rise is almost certain to spark a backlash from residents and political opponents alike.

A Political Time Bomb for Labour

The Hartlepool Labour Group, whilst in opposition rejected council tax increases, now they're in power, they're set to increase town council tax bills by nearly 5%

The Hartlepool Labour Group reportedly is set to face mounting backlash over any proposed increase in council tax bills, amidst declining national opinion polls for the party as well as local dissatisfaction over its handling of council affairs. In 2023, Hartlepool Borough Council by public petition & under its previous Conservative / Independent coalition was declared an "authority of no public confidence," and with Reform UK said to be gaining ever increasing support in the town, Labour’s majority at HBC could now be under serious threat in the next local elections if they press ahead with a council tax increase, despite rejecting them every year when in opposition...

A 4.99% tax hike is likely to add hundreds of pounds annually to the average Band D household's bill in a town already said to be grappling with obscenely high poverty levels. This, coupled with controversial cost-cutting measures, is unlikely to sit well with locals who are almost certainly set to punish Labour in any future elections.

Cost-Cutting Controversies

HBC Could really be getting ready to 'steal Christmas' after claims emerge thry're even reviewing the number of Christmas Trees being planted over the festive season next year

Hartlepool Borough Council is also reportedly considering ending free parking on Sundays bringing to an end all of its parking concessions in its managed car parks. Popular free events like the Christmas light switch-on and even the towns fireworks displays are also said to be on the chopping block, with funding reviews in progress. Even allotment rents are said to be under review as potential sources of additional revenue.

The council is set to debate the proposed tax increase at its next full council meeting, but with the cost of living already straining residents, this decision could cement widespread public frustration with local leadership.

Could Labours return to Hartlepool Council be "short lived"...?

For Labour, the stakes couldn’t be higher. An approved 4.99% council tax increase for Hartlepool could solidify public resentment and hand Reform UK the ammunition they need to secure victories in the next election. As Hartlepool braces for yet another round of tough financial decisions, one thing is clear: patience with politicians—local or national—is wearing dangerously thin.