Tax rise to net Durham County Council £7m – but cost Band D properties £50 a year

DURHAM County Council is proposing not to increase core tax in the coming year, despite pressure on its budget.
However, its medium-term financial plan does make for an increase in the adult social care precept it charges from households by three per cent.
This means that households in the band D bracket will pay an extra 98 pence per week on their county tax bill and will add about £7million to council coffers, if the proposals are approved.
Householders also have to pay charges levied by the fire and police services and parish councils.
The authority’s financial plan is due to be discussed by the county council’s cabinet today, February 9.
In a report, the corporate management team said it was difficult to plan for the medium term because no details are known about how much cash the council will get from government under the Fair Funding Review (FFR) which is due to come into place next year.
The medium term covers 2022 to 2026. The report said the council had received a provisional settlement from government ahead of the FFR.
It added: “The provisional settlement is welcome, with additional funding being provided to the council next year, although around 50 per cent of the additional funding is one off and not certain for 2023/24 and there is significant uncertainty beyond next year due to the FFR, with a lack of clarity on the future of the National Housing Bonus.”
A major challenge to balancing the budget has been the cost of adult social care, which has risen due to a 6.6 per cent increase in the basic living wage. The report said: “On that basis a three per cent increase in the adult social care precept will ensure that the increased costs in adult social care can be financed in 2022/23.”
It further noted that the council would have to continue to make savings of almost £30million over the medium term to balance the council’s budget, with £2.4million being made in the coming financial year.
The bulk of the savings, some £16.6million, is to be made during the 2023-24 financial period.
The report said: “The council continues to seek to identify and generate additional savings, having a clear focus upon efficiency savings, income generation and the protection of frontline services as far as is possible.
“To protect frontline services additional corporate savings of £1.2million are proposed to supplement the already agreed 2022/23 savings, resulting in £2.427million of support to help balance the 2022/23 budget.”
Despite the challenges, officers are proposing capital investment of £602.2million up to the 2024/25 period. This includes the building of new schools and improving roads.
Some £109million of capital investment is to be made in the coming year.
The report said: “Although the council’s main highways and footway networks are maintained at or above the national average standards, the unclassified network is below national average standards. Over the period 2022/23 to 2024/25 the council will invest a further £13.86 million in the unclassified road network to bring this element of the network up above national average standards.”
The deputy leader of the county council, Cllr Richard Bell, said: “We are pleased that we have been able to balance the budget next year without the need to increase the core council tax and without the need to use our reserves. However, we face significant and unavoidable cost pressures, particularly in our adult and social care services. Therefore we are proposing to increase the adult social care precept by three per cent to help us meet these challenges. More than that, as a council we are heading into the next financial year with a wide range of new proposals to invest in frontline services, from pest control to allotments, from climate change to country parks, and with funding in place to ensure our bids for further funding from Levelling Up are robust.”