Durham County Council tax hike CUT to 1.99 per cent

Members of Durham County Council’s cabinet backed a proposal to reduce the previous 3.1 per cent increase to bills at a meeting on Wednesday (January 11). 

New funding received from the Government earlier this week has enabled the Reform-led authority to reassess its budget for 2026/27 and suggest the new figure. The core council tax base will be reduced to zero per cent, while the 1.99 per cent increase with fund social care services. 

Karen Allison, cabinet member Leisure, Tourism, Regeneration and High Street, praised her Reform colleagues and council officers for improving the financial management of the authority. 

She said: “At 1.99 per cent, the council tax increase next year will be well below inflation and, I would expect, well below what the majority of other councils will be at. It will be interesting to see if the other 40 councils that benefited from the funding do as we are. Let’s see if they pass on the benefits to their local council taxpayers.”

Paul Darby, the council’s corporate director of resources, said that despite the change, future council tax rises must continue to be considered in the future to balance the budget. 

He told the meeting: “I would strongly recommend to the council that a proposed council tax increase next year is factored into consideration. If we do not increase council tax in 2026/27 the council will face an increased budget deficit of £6.1 million, for which the council will be unable to identify suitable savings at this stage.”

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. 

The council’s budget proposals suggest the authority faces a budget deficit of around £9.5 million in the next year and an additional deficit of around £42 million for the following three years.

Cllr Allison added: “We are determined to continue as we have set out from day one. To drive transformational change and deliver real value for money for our residents, and ensure we keep any future council tax rises to an absolute minimum.”

A final decision on the updated proposal will be made at next week’s county council meeting on Wednesday, February 18.