COUNTY finance chiefs are calling for a rise of almost four per cent rise in people’s council bills in the coming year.
Durham County Council’s cabinet is meeting this week to discuss the county’s medium-term financial plan, which recommends council tax be increased by the maximum of 1.9 per cent and a further two per cent increase in the adult social care precept.
A 1.9 per cent is the maximum the council can increase its tax without holding a referendum.
Council leader Cllr Simon Henig blamed government spending cuts and uncertainty over future funding levels for creating a “very challenging financial period” .
However, Teesdale’s county representatives say the government funding is at the highest it has been in the past ten years.
The increase would see the council’s income increase by £8.8million a year, and people living in band D properties paying about £60 extra to council coffers each year.
The report, which will be considered by the cabinet today (Wednesday, February 12), said the council had made savings of about £234million since austerity began in 2011, and additional savings of £8million need to be made in the coming year.
The report, which was prepared by chief financial officer Geoff Garfoot, transformation director Gordon Elliott and head of planning and performance Jenny Haworth, said: “The council has addressed some of its financial challenges through increasing fees and charges.
“Such decisions are carefully considered and it is acknowledged that it is not appropriate to aim for the highest charges possible, given the income levels of the majority of residents and service users in County Durham.
Despite the savings that need to be made, the council’s plan provides more than £145million investment in frontline services and development projects over the next three years.
A spokesperson said: “The council is planning to invest an additional £31million of revenue spending over the next two years, with more money for roads and potholes, further climate change initiatives in support of commitments already made by the council, investment in sprucing up local communities and deploying more neighbourhood wardens to improve community reassurance, and more funding to support some of the most vulnerable residents across the county.”
Among the proposals that will directly impact the dale are an investment in 10,000 trees through Teesdale Action Partnership to offset carbon emissions. Proposed locations or how this will work has not yet been revealed.
There will also be plan to provide an electrical point at Barnard Castle’s Wednesday market to remove the need for traders to rely on diesel generators, which cause fumes and noise. Some £50,000 is to be given to the North Pennines Area of Outstanding Natural Beauty Partnership (AONB) to restore peatland in Teesdale and the surrounding areas.
Cllr Alan Napier, deputy leader of the, said: “There continues to be significant uncertainty over the resources available to local government over the medium to longer-term, which makes accurate planning extremely difficult.
“Nevertheless, it is important that we continue to invest in our services whenever the opportunity presents itself in order to address the priorities of residents, meet changing demands and ensure services are as robust as possible for the future.”
Cllr Richard Bell, who leads the Conservative group on Durham County Council, accused council leaders of underplaying the role of central government in the council’s improved finances.
He added: “The press releases always lay it on thick about government cutbacks, but if you get into the detail of this report you can see that the council has about £20million more revenue spending this year than it thought it had last July, of which £16.2million is increases in government grants. This is the most generous funding settlement for ten years and it would have been nice to see some acknowledgement of that. Instead we get the usual ‘poor me’ record.
“We are studying the cabinet proposals for spending and will be tabling our own at full council at the end of February.”
