A COUNCIL must make“difficult choices” as it strives to save more than £45m over the next few years to balance its budget.

Durham County Council’s cabinet heard how the authority would face “significant” challenges in the next four years - even after “necessary and expected increases in council tax”.

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Councillor Richard Bell, deputy leader and cabinet member for finance, said: “We have a funding gap of £5.8m next year, and £45.7m across the next four years, based on these updated forecasts.

“The position for next year is manageable but the scale of the challenge beyond next year is significant and will require some difficult choices to be made.”

The council’s medium term financial plan for 2022 to 2026 - a “step on the road” to deciding on budgets next February - was presented to cabinet this week.

“The report outlines the significant uncertainty and financial challenges we will face in balancing next year’s budget and beyond,” said Cllr Bell.

“We must continue to plan for the medium term and prudently manage the council’s finances.”

The meeting heard the council had reserves of £12.6m, but these were only to be used as a temporary measure.

Cllr Bell said: “Some councils have fallen foul of not planning sufficiently well ahead, of not taking these tough decisions on council tax and on savings, and of using reserves to unsustainable levels. That is not something that we will allow to happen.”

He said low house prices and bandings meant council tax could not raise enough money to cover the budget pressures.

“This is something I’ve previously written to the Prime Minister and the Secretary of State about,” he added.

He said matters would be clearer after the Government’s comprehensive spending review later this month, and the draft local government finance settlement in December, when it is hoped a further report will be brought to cabinet.

Cllr Bell said: “The uncertainty that currently exists over our medium term funding position will hopefully be resolved by the end of the year, which will then allow us to firm up our forecasts and have a solid foundation on which to make whatever decisions we need to make.”

Council leader Cllr Amanda Hopgood said: “The report provides us with an updated forecast of the unavoidable budget pressures we will need to accommodate in order to balance our budgets in the coming years.

“Let’s be clear - it is important to note that this is not the budget and the council tax setting report.

“It is a set of financial forecasts underpinned by prudent financial planning assumptions that will ultimately help frame the cabinet budget proposals that we will take to council in February.

“I believe we have robust arrangements in place.”

She said the forecast challenges after next year would “require difficult choices to be made, and careful planning”.