County Durham residents to see council tax bills rise by 5%

People throughout the county have been told they must pay up to £90 more per year, as Durham County Council bids to cut a £52 million shortfall over the next four years. 

The proposed tax increase would see band A-C households pay between an extra £1.12 and £1.50 per week, however around 54,000 households on low incomes will be protected from any increase. 

Adult social care will receive increased council funding amid growing pressures and inflated costs, allowing the local care sector to employ more staff and increase pay. 

The authority said the tax rise will reduce the deficit to £41 million but must also increase the cost of fees and services to help balance the books. The price of school bus tickets is set to increase across the county in a bid to make savings, rising from £1.63 per day to £2.80.

A further £12.4 million of savings and reductions will also be made, while the council will need to use £10.2 million of its cash reserves to balance the books.

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But the council received criticism from the opposition Labour Party, who claimed the Tory-led coalition had set out a budget that demanded people pay more for less services, while Labour leader, Cllr Carl Marshall branded it “a failed budget by a failed administration”.

Cllr Rob Crute said: “Why should residents pay more for less in return? It doesn’t take a genius to realise they are being told to cough up for someone else’s mistakes. Hard-pressed households in a cost of living crisis shouldn’t be burdened with another rise in bills. 

“This is a failed budget by a failed council. A budget to finish a job they started two years ago – upping fees, raising charges, hiking council tax. Do coalition councillors realise people can’t afford yet another raid on the piggy banks of working families. Do they care?”

Opposition councillors say the former Labour administration protected residents, and kept average council tax rises under one per cent each year between 2010-2016, including three years with no increase.

Cllr Rob Crute from Durham County Council, deputy leader of the Labour group and shadow cabinet member for finance. (Image: The Northern Echo)

However Lib Dem council leader, Amanda Hopgood, defended the budget and branded the opposition “full of hot air, but no ideas”. 

She added: “This budget is prudent and affordable, and incorporates significant savings, and the use of reserves as well as an increase of 2.99 per cent in the core council tax rate.  

“The joint administration is not cutting any key council services – in fact, this budget protects front line services.”

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Cllr Hopgood said the Labour group previously only raised council tax by one per cent due to a government-enforced threshold. 

“Applying an adult social care precept increase in addition is not a decision we have taken lightly, however it is essential for funding the significant budget pressures in social care and to ensure that we continue supporting vulnerable people in County Durham,” the council leader added. 

“There remain significant financial challenges ahead for the council. This budget reflects the joint administration’s positive and inclusive approach to serving and supporting everyone in this great county.”

Despite some rises the budget also includes multi-million investment for a range of key schemes in County Durham, which invest in public buildings and facilities to revitalise town centres, transport improvements, and maintenance of the county's highways and pavements.

This includes the new Belmont Community Arts College and Belmont CE Primary School; an additional £10 million investment in the refurbishment of Greenfield School, Newton Aycliffe; a £14.8 million investment in highways and a £15 million investment to repair a landslip on the A690.