Extra £10m funding boost praised by Durham council and MPs

The Reform-led local authority and Labour MPs in the region welcomed the investment, which is part of a new three-year settlement for councils. 

News of the funding boost on Monday enabled council leaders to suggest a revised council tax rise of 1.99 per cent for County Durham households, down from the proposed 3.1 per cent increase. 

Andrew Husband, council leader, said: “While we welcome the awarding of any new additional funding for County Durham, it is extremely disappointing that this announcement has been made so late in the budget setting process, but we have considered the new settlement quickly and the right thing to do is to pass this on by reducing the council tax increase for 2026/27.”

Councillors will vote on the authority’s budget, which includes the proposed council tax rise, on Wednesday (February 18). 

Durham County Council will receive an additional £3.7 million in 2026/27, rising to £4.9 million in 2027/28, before reducing to £1.4 million in 2028/29. The Government had already pledged to give the authority £50.5 million over the next three years. 

The funding is part of a new Recovery Grant Uplift Grant, given to councils that were due to receive a ‘Core Spending Power’ increase of less than 17 per cent over the next three years.

Increased grant funding allocations for homelessness, rough sleeping and domestic abuse are also due to be provided. 

Welcoming the increased funding, Mary Kelly Foy, City of Durham MP, said: “After years of being overlooked by Tory and coalition governments, Labour is demonstrating that this is a government that will finally provide for people across County Durham – but the work doesn’t stop there, I’ll continue to push for more funding whenever the opportunity arises.”

Mary Kelly Foy, City of Durham MP (Image: UK PARLIAMENT)

Bishop Auckland’s Labour MP Sam Rushworth said County Durham was “let down” by previous Conservative governments, which he said prioritised wealthier areas of the country. 

“We announced recently that Labour is restoring fairness to council funding with a new funding formula that will deliver a significant uplift to Durham. 

“This means extra funding for the things you care about, like reviving our high streets, fixing roads, building homes, and supporting libraries, youth services, clean streets, and community hubs, getting back what has been lost. And it makes it possible for the council to keep your council tax low, to help with the cost of living.”

Sam Rushworth. (Image: Roger Harris)

However, Cllr Husband warned that the reduced grant funding in 2028/29 could impact the council’s future finances. 

He added: “While this will provide some respite next year, the majority of this new grant is to be taken away in 2028/29. In addition, once we factor in the net additional funding we will receive, it is only £1.4 million by 2028/29. We will need to deal with that in future budget rounds.

“We will continue to do all we can to seek efficiencies and protect frontline services going forward.”