Council tax bills to increase in County Durham after council vote

Durham County Council’s annual budget was approved by councillors yesterday (Wednesday, February 19) despite opposition from Labour members. A vote on the proposals saw 59 councillors vote in favour and 57 against. 

Council leaders warned the authority faces huge cost pressures and significant financial challenges over the next four years.

Despite criticism over the tax rise from opposition councillors, Durham County Council’s leader Amanda Hopgood warned: “Not increasing council tax is simply not a sustainable or prudent strategy to adopt.”

The council will make savings worth £18 million amid a budget gap of £45.536 million over the next four years. A government grant providing an additional £48.8 million is not enough to avoid the cost pressures, councillors were told. 

Liberal Democrat councillor Hopgood said the authority faces “significant inflationary and demand pressures” with its services and has been impacted by changes to national living wage and national insurance costs. 

She told a full council meeting: “We are constantly having to find savings just to stand still. We are in a constant spiral of finding savings to balance the budget and it’s getting harder and harder as years go by. The uncertainty over our funding settlements from 2026/27 onwards casts an ominous shadow over our medium term financial planning.”

Labour leader Carl Marshall praised the funding provided by the government but said it should not be blamed for the council tax rise, which is the responsibility of the council – led by a coalition of Conservatives, Liberal Democrats and Independents. 

He said: “Let’s dispense with the flip-flopping, the ‘not our fault’, and the finger-pointing of the Lib Dems, Tories and Independents. They all know increasing the council tax is their choice and their choice only. They’ve got to own that. 

“This budget is an absolute disaster for our community, another missed opportunity by the people who have spent four years squandering reserves, ducking difficult decisions, sweeping their mess under the carpet for Labour to clear up come May. If this council was a resident in County Durham I dare say the bailiffs would be knocking at the door.”

“It doesn’t have to be like this, it’s time to start putting the communities of County Durham first. The council should start by putting people ahead of their own political preferences. Start making decisions based on the needs of our communities.”

Council officials warned it would be “negligent” if approval of the budget was delayed, but Labour members refused to back the financial plan. 

Cllr Marshall added: “It’s time to put County Durham back on track. Shake off the shackles that have held us back for 14 years and look to the future with optimism and ambition – and that starts by rejecting this budget and creating a new one. 

“I would urge all members to vote against this budget today. Let’s take a pause, and use the time we have wisely. Let’s create a budget to rebuild our county, a budget delivering for all of the people we represent. A budget that would put County Durham first.” 

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However, members of the ruling coalition said the opposition failed to provide an alternative plan. James Rowlandson, Conservative councillor for Barnard Castle East, said: “Labour are here again with no ideas, no amendments, and no vision for the people of County Durham.”

Independent councillor John Shuttleworth said the change in government has not provided a substantially improved County Durham’s finances.

He said: “Everyone had high expectations of the Labour government, they promised lots of things. In eight months they’ve shot themselves in the foot, leg, and head. There’s nothing else to shoot.”

Changes to council tax bills will come into force later this year. People on low incomes, unemployed, or retired are currently eligible for Durham County Council’s reduction scheme, meaning they pay less for their bills.