Labour Councillors in Hartlepool Threaten Mass Resignation Over Care Funding Crisis
Keir Starmer is confronting a potential mass resignation of Labour councillors in Hartlepool, one of England's most deprived areas, amid accusations of a "betrayal" over funding for children in care. The council, led by Labour, is grappling with a severe financial shortfall that has left members "between despair and open revolt."
Funding Shortfall Sparks Outrage
Pamela Hargreaves, the Hartlepool council leader, revealed that her group of 21 councillors, who hold overall control of the 36-member council, are contemplating quitting Labour this week in protest. "We feel betrayed. We feel let down," she stated, expressing disappointment that the Labour government has not delivered on its promises of fairer funding.
Hartlepool requires an additional £3 million to address its escalating social care bill, but the government has refused this request. The town has the third-highest number of children in care per capita in England, exacerbating the crisis. Jonathan Brash, the Labour MP for Hartlepool, noted that the offered £3 million increase is "the equivalent of funding around six children in care," a figure he described as grossly inadequate.
Broader Implications for Local Services
The funding settlement has left Labour councillors "distraught, despondent and profoundly worried," with services such as libraries, youth provision, and community hubs now under threat. Hargreaves emphasized that unless the government agrees to help fund a £6 million overspend on the children's social care budget, resignations are imminent. This overspend has been partly driven by other local authorities "dumping" families in Hartlepool.
Hartlepool, ranked as the sixth most deprived council in England, is expected to raise council tax by 4.99%—the maximum allowed without a local referendum—for 2026-27. This move places further financial strain on residents already paying high taxes.
Political Context and Historical Background
The situation is particularly poignant for Labour members who helped reclaim Hartlepool in 2024 after a damaging byelection loss to the Conservatives in 2021, which prompted Starmer to consider resigning as party leader. Hargreaves lamented, "We've stomped the streets... and now here we are again at the 11th hour with not enough money to fix the issues that are beyond our control."
Steve Reed, the local government secretary, asserted that ministers are "realigning" funding to ensure poorer areas receive a fairer share. However, local government leaders argue that a significant increase in funding is essential to prevent more councils from facing bankruptcy, following years of cuts and rising costs under the previous Conservative administration.
As Reform UK eyes gains in the upcoming May elections, the potential resignation of Labour councillors could destabilize the authority, which was previously led by a Conservative-independent coalition and briefly by the Brexit party in 2019-20. The Ministry of Housing, Communities and Local Government has been contacted for comment, but the future of Hartlepool's care services remains uncertain.
