Millions of Pounds Worth of Cuts to Be Introduced, as Hartlepool Council Struggles to Balance the Books
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'Doomed' Council Tax Freeze Comes at a Cost, as Hartlepool Borough Council Now Hunts for £2.8m Pounds worth of Savings..
6th March 2026
Hartlepool Borough Council's being forced to make millions of pounds in savings across almost all of its services as it attempts to balance its budget following what many claim is a 'doomed' decision to freeze council tax.
A revised finance & forecast report presented seen by the Teesside & Durham Post reveals Hartlepool Borough Council is forecasting a £2.45 million overspend for the 2025/26 financial year, despite already relying on £1 million pounds worth of reserves to balance the books when the budget was first set. In reality, its claimed the council is likley to be facing a structural financial deficit of aroun £3.45 million as the financial year progresses .
The report, outlines a wide range of savings measures and cost controls which are now having to be implemented across the local council after councillors controversially approved a Council Tax Freeze for the borough going against officer recomendations & warnings that the council would lose almost three million pounds in lost revenue due to the decison. .
Nearly £3 Million Pounds in Savings Already Planned
Council leaders are already said to have approved a £2.849 million savings programme for the current financial year as part of efforts to keep spending under control.
According to the report £1.93 million of savings have already been delivered, with a further £605,000 progressing, but may take longer to fully deliver & a further £315,000 of savings now said to be 'at risk of not being achieved this year'.. Many of the savings are said to have come through vacant posts, delayed recruitment and tighter spending controls across council departments. One of the main ways the council has managed to reduce spending has been by leaving jobs unfilled and holding vacancies open across multiple services. Several departments are currently reporting underspends due to vacant positions or staff not yet reaching the top of their pay scale, with these staffing savings reportedly said to be helping to offset financial pressures elsewhere within the council.
Service Budgets Under Pressure
The report also reveals several planned savings are proving difficult to achieve, with a planned £300,000 saving from the concessionary bus fares budget now expected to fall short by £225,000, largely due to increased bus usage. Furthermore, A review of school catering and cleaning services aimed at saving £100,000 is now expected to deliver only half that amount because of rising costs and fewer schools buying the service. In addition, A proposal to save £40,000 from children’s services data support work has also failed to deliver as schools did not take up the service as expected.
Financial pressures are also being caused by reduced income from some council services.
Areas currently experiencing lower-than-expected revenue which include:
Planning services
Strategic asset management
Public protection services
Cultural venues including the Town Hall Theatre and Borough Hall
Carlton Adventure outdoor centre
These shortfalls mean the council must find savings elsewhere to compensate.
Social Care Pressures Driving Costs
The biggest financial pressure facing Hartlepool Council is said to be the continuing demand for social care services. Children’s services alone are reportedly forecast to overspend by £6.45 million, mainly due to the growing number of children requiring residential care placements and the increasing cost of specialist care. Adult social care is also under strain, with a forecast overspend of £700,000 caused by rising care costs and increasing demand for support.
Council Reserves Being Used to Balance Budget
Despite repeated warnings from the councils auditors that persistent relyingon council reserves to balance the budget was 'unsustainabe', The council is also said to be still relying heavily on its reserves to stabilise finances. Figures in the report show that council reserves are expected to fall significantly over the next few years as they are being used to support the budget. Revenue reserves are projected to drop from £38.3 million to around £12.3 million by 2029 if current spending pressures continue.
Mounting Financial Pressure & Neither Labour or Reform have a plan !
Despite the savings already delivered, council officers were said to have warned councillors recently that further financial pressures remain, particularly within social care services & as additional costs are set to be felt due to the crisis in the middle east which is expected to see costs across the economy soar.
For now, Hartlepool Borough Council is relying on a combination of service savings, recruitment controls and the use of reserves to keep its finances under control while attempting to maintain frontline services.
However, the reality is that neither Labour or Reform seemingly have any credible financial plan as to how they would stabalise the councils finances in the next financial year, with sources claiming many more cuts are on the horizon, with Council Tax Support next to be in the sights for cuts which will again pile the financial pressures on those who are struggling already.
