Financial pressures ‘cast a significant shadow’ over Durham council

Politicians in charge at the Reform-led Durham County Council have warned the ongoing financial challenges facing the local authority “continue to cast a significant shadow” over its budget for next year and beyond. 

In the latest estimates revealed in November, council officers anticipate that £72.8 million worth of savings is required over the next four years. 

The council faces a budget deficit of £19 million for 2026/27 and last month revealed proposals for £10 million of new savings proposals, including potential job cuts and parking charge rises. 

Unavoidable pay and price inflation, alongside rising costs in statutory services, continue to place a “huge strain” on the council’s finances, council leader Andrew Husband said. 

Services have also been impacted by escalating and sustained increases in demand for children’s social care, home-to-school transport, and Special Educational Needs and Disability (SEND).

Forecasted costs for children and young people’s services are estimated to overspend by more than £9.5 million.

Darren Grimes, council deputy leader, said: “These financial challenges continue to cast a significant shadow over our 2026 to 2027 budget and beyond. We continue to challenge these costs line by line.

“We have to make difficult decisions. We were bitterly disappointed that the budget failed to provide a solution to that particular can and instead chose to kick it down the road. Newcastle United have problems at the minute, but I’m suggesting that we get Rachel Reeves in because she’s one hell of a striker. 

“We continue to prioritise maintaining a strong grip on the public purse, tackling pressures early and refusing to pretend that national cost drivers are local choices. We are clear with the public in this party.”

Despite the concerning outlook, Cllr Grimes praised officers for their “sensible housekeeping” and said it was “representative of a clear focus on reducing costs wherever we can.”

Cllr Husband added: “All services across Durham County Council are performing well, and it’s really encouraging to see the direction of travel we are on.”