Labour warns tax rise would impact vulnerable Durham residents

People on low incomes could face higher costs under new measures proposed by Durham County Council. 

The local authority has suggested several reforms to its Council Tax Reduction Scheme after warning that changes are necessary due to funding constraints. 

But the County Durham Labour Group said the Reform administration’s proposal is “deeply unsettling” for people using the scheme.  

Councillor Rob Crute, County Durham Labour leader, said: “It comes as no surprise to see that people are angry at the Reform UK administration running Durham County Council.”

The introduction of a cap would result in all working-age residents being required to pay a minimum amount towards their council tax liability – meaning that all residents, regardless of their financial circumstances, would contribute to the services provided by the council.  

Labour claimed residents feel they have been “duped” by a previous pledge not to raise council tax. However, the head of Reform UK’s Doge unit, Zia Yusuf, recently said local authorities the party controls will not be able to reduce council tax, despite earlier claims of potential cuts. 

North Durham Labour MP Luke Akehurst also urged the council not to change the scheme. In a letter to Council Leader Andrew Husband, he said: “I am appalled and concerned that one of the first acts of a Reform council under your leadership is to contemplate a significant increase in council tax.”

Around 32,600 people are currently signed up to the scheme, which was introduced in 2013 to offer eligible working-age residents discounts of up to 100 per cent on their council tax bills. 

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Peterlee, Stanley, Bishop Auckland, and Ferryhill are set to be the most impacted due to having the largest proportion of council tax discount claims, the local authority said. 

County Durham Labour has launched a petition, calling on Reform to protect the scheme, dismiss any attempts to scrap it, and protect working people from council tax rises.

A final decision is due to be made in December following a public consultation. 

Deputy Council Leader Darren Grimes said introducing a cap would bring the council scheme in line with the majority of other councils. 

He added: “Labour’s local representatives have the nerve to attack us for launching a consultation to fix the broken, wasteful benefits system they left behind. 

“A system so chaotic it costs taxpayers over £175,000 a year in postage alone and causes misery for low-income families with up to 11 confusing bills a year every time a resident’s Universal Credit ward changes, the Council has processed 190,254 changes in the 2024/25 financial year alone.  

“Crucially, however, our consultation also consults on keeping 100% of the cap.”