Reform criticises Government funding settlement for Durham Council

Labour MPs in County Durham have praised the party’s investment, designed to improve the local authority’s core spending power, but Durham County Council (DCC) has accused the Government of “telling huge fibs” about the funding. 

Durham County Council said it will receive £51.4 million across three years. 

The money is part of the new multi-year funding settlement, which sets out local government finances for the three years up to 2029 and can be used to pay for services like bin collections, housing and children’s services.

Luke Akehurst, Labour MP for North Durham, said: “This is a turning point, a chance to turn the page on a decade of cuts and callousness, and for 
local leaders to invest in getting back what has been lost – to bring back libraries, youth services, clean streets, and community hubs.

“For too long, deprived communities were left behind. We’re ending the postcode lottery so  everyone can access the services their community deserves.”

But Darren Grimes, deputy council leader, said much of the funding will be spent on responding to current budget overspends and accused the Government of prioritising metropolitan areas over deprived regions, including County Durham. 

“The ‘party of the working class’ has chosen Kensington over Kelloe,” he said. 

The council’s cabinet member for finance added: “They have traded the pit villages for the penthouse. This talk of a £170 million ‘boost’ is a fantasy – they’ve re-badged old money and told councils to fleece residents by the maximum five per cent tax hike every single year just to keep the lights on.”

An updated funding system will also be introduced, the Government announced, which aims to make more money available for areas with the greatest need. 

Mary Kelly Foy, Labour MP for City of Durham, said: “The new administration at Durham County Council has nowhere to hide. With these resources now in place, thanks to a Labour Government, it is time for them to deliver. As always, I’ll continue to push for Durham to get a fair deal.”

But Andrew Husband, council leader, isn’t convinced. He said: “Labour MPs are telling huge fibs about the fair funding review for DCC. It is not ‘£170 million’. It is not a ‘27 per cent increase in core spending’.” 

Reform said the funding figures are also reliant on council tax being increased by the maximum five per cent next year.

Politicians in charge at County Hall have warned that the ongoing financial challenges “continue to cast a significant shadow” over the local authority and its budget for next year and beyond. Budget estimates for funding children’s care have increased by about £20 million in one year. 

Since taking control of the local authority in May, the Reform-led council has repeatedly called for a fairer funding deal. 

And Cllr Grimes accused Labour of targeting Reform-led councils. 

He added: “The actual new government grant is a fraction of what they claim. Meanwhile, in just one year, the cost of children’s care in Durham alone has spiked by £20 million. A single statutory pressure has already wiped out their entire ‘new’ annual funding.

“This isn’t an investment; it’s a managed decline of the North to bankroll the London liberal consensus. It is a punishment beating for Reform-voting areas that dare to demand a fair share. Durham isn’t stupid—we can read the small print, and the small print says we’re being short-changed to feed Starmer’s Labour-voting cities.”

The settlement also includes other changes, including letting councils keep all additional council tax from new homes to encourage local growth and home ownership.

Local government and homelessness minister Alison McGovern said: “Deprivation doesn’t happen by accident, it’s the result of years of broken systems and wrong priorities.

“This settlement tackles that head on by directing funding where it’s needed most.

“By fixing the link between funding and deprivation, we’re giving local areas the tools to create opportunities, support families and rebuild the services that hold communities together.

“This is how we deliver a fairer Britain where everyone has the chance to succeed.”