Council warned of future budget ‘uncertainty’ in County Durham

The cash, received from the Government earlier this week, has enabled Reform-led Durham County Council to reassess its budget for 2026/27 and suggest a 1.99 per cent council tax rise, down from an initial 3.1 per cent. 

Reform council leaders said the proposal is among the lowest in the country. 

The local authority will receive an additional £10 million on top of an initial £50.5 million government grant to fund key services over the next three years – including £3.7 million this year and £4.9 million next year before dropping to £1.4 million in 2028/29. 

Despite the funding boost, the authority has proposed £12.9 million worth of savings next year, including changes to services. 

But Liberal Democrat councillor Mark Wilkes warned of the negative impact the council’s budget proposals could have in the future. 

Liberal Democrat councillor Mark Wilkes has questioned the budget. (Image: County Durham Liberal Democrats)

He told a Corporate Overview and Scrutiny comittee: “I am really concerned about the level of uncertainty despite the fact that we have a three-year settlement, and I think the cabinet is putting the public at risk of huge council tax rises down the line, much bigger increases in charges to parking or cuts to services that we have never seen on such a scale before. 

“Even with the best settlement we have ever had, we are still seeing grass cutting being reduced, litter pickers being cut, and warden services being reduced.”

In December, the local authority agreed to change its council tax discount scheme, meaning most residents will have to pay at least 10 per cent of their bills, to ensure all residents contribute to the cost of services provided by the council.

Council leaders have also proposed cutting a £1 million fund that it gives out to town and parish councils across the county each year for maintaining local services and hosting events. 

Cllr Wilkes added: “There is a genuine risk here that, in order to balance the budget, all of those services and more are going to see much larger reductions in future years, and it does feel like this year, a mistake is being made. I hope I’m wrong.”

The authority’s decisions were also challenged by Councillor Chris Lines, an Independent member for Sedgefield. 

“Decisions are being made now that appear to be very short-sighted and will create what could be insurmountable financial challenges for this council in a few short years,” he told the committee. 

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.

Councillor Chris Lines, an Independent member for Sedgefield. (Image: The Northern Echo)

Cllr Lines added: “Despite the luxury of having a three-year settlement, the current administration now appears to be pursuing what looks like an ideologically-driven approach to score a PR point, while at the same time cutting services.”

“The administration could have used the extra money announced by the Government to reverse its decision about changes to the Council Tax Reduction Scheme, helping the poorest in society and many town and parish councils manage the reduction. It feels to me like they have pursued a headline.”

Councillor Richard Bell, Conservative member for Barnard Castle, said the extra funding provided this year should have been used as a reprieve for service cuts. 

A proposal to review and rationalise Household Waste Recycling Centres across the county has also been withdrawn from the budget, reducing the council’s planned savings by £250,000.

And Andrew Husband, council leader, said the reduction in grant funding in 2028/29 will need to be dealt with in future budget planning. 

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