3.1% council tax increase proposed in County Durham

Durham County Council has announced its intention to increase bills to help balance its budget.

Council tax has increased by 4.99 per cent, the maximum allowed without a referendum, in recent years. 

Deputy leader of the Reform UK administration Darren Grimes said “difficult decisions” will need to be made, but is confident the local authority will continue to provide effective services for residents. 

Council officers warned that if the authority does not increase its council tax, the forecast budget deficit will be £9.344 million in 2026/27 and £51.792 million across the next four years.

Final decisions on council tax proposals will be made in February as part of the final budget-setting process.

Cllr Grimes said: “Some difficult decisions will need to be made ahead of the approval of the budget in February, however, I am confident we have identified proposals which will protect our financial position while ensuring we can continue to deliver effective services for our residents and communities. 

“The proposals will also help us limit council tax increases next year to below inflation, and below that which has been applied previously in County Durham, and certainly below what other councils are likely to apply.”

A survey of around 1,700 residents found 69 per cent of respondents supported some level of council tax increase to avoid cuts to local services. 

Durham County Council will receive £51.4 million across three years as part of the new multi-year funding settlement, which sets out local government finances for the three years up to 2029 and can be used to pay for services like bin collections, housing and children’s services.

Children’s and adult social care remain the largest cost pressure for the authority due to rising demand and pay inflation. 

Reform UK leader Nigel Farage (right) and Darren Grimes whilst on the local election campaign trail (Image: Owen Humphreys/ PA)

Cllr Grimes, who was elected to the Annfield Plain and Tanfield ward in May 2025, added: “We continue to face significant financial challenges, driven by increasing demand for statutory services, inflationary pressures, and changes in national funding policy. 

“These are all factors which are out of our control, however, we are working hard to set a balanced budget which protects vital services without putting additional cost onto the taxpayer.

“While the Local Government Funding Settlement gives us better clarity in terms of our funding position over the next three years, the government has based its figures on the assumption that councils will raise council tax by the maximum amount available. Once again, we are being asked to put the burden of balancing our budget onto the taxpayer, which we are trying to avoid.

“In order to avoid following the government’s assumption of a maximum council tax increase next year, we have identified savings which have been thoroughly consulted on. We would like to thank every resident who has given feedback on our proposals, which have been factored in as we look to set our final budget.”

The Cabinet will discuss the council’s budget at a meeting next Wednesday (January 21).