Darlington residents are set to be hit with another council tax hike, as the local authority warns of an urgent need to make multi-million pound savings. 

Council chiefs have unveiled new cutbacks aimed at saving £4m per year and £16m by 2027/28. 

A 4.99 per cent council tax increase is proposed as part of plans to raise much-needed funds. Other savings are expected to be made through: increased service charges; reduced costs in management, back office, general housekeeping; and energy savings will be closely monitored. 

The Labour-Liberal Democrat council said it is facing “unparalleled” financial challenges due to a £46m reduction in public spending between 2010 and 2019. 

Particular pressures affecting the council include the “spiralling increase in demand for children’s social care, high inflation, and rising interest rates”, council leader Stephen Harker said. 

Council officials have warned that additional government funding is needed otherwise its reserves will be fully depleted by the end of 2025/26.

Explaining the council tax increase, Cllr Harker said: “Darlington has the second lowest council tax in the North East and as such we cannot raise sufficient income from council tax charges to fund the spending pressures we face, every one per cent increase in council tax increases revenue by £0.625m

“To protect services as far as possible and push back the impending cliff edge, all budgets have been reviewed and challenged and savings of £4.019m achieved through back office efficiencies, restructures and income generation which do not affect front line service delivery.”

Around £3.1m will be raised through the tax hike. 

Elsewhere, £300,000 will come from increased prices for swimming, gym and sport classes at the Dolphin Centre, and increased burial and crematorium fees among others. 

Cllr Harker added: “The council has performed well in responding to the financial challenges over the years, taking early action to ensure that it is ahead of the curve and not therefore pushed into short term decisions. 

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“However, the overwhelming demand for services, increased contract costs linked to inflation and living wage increases is making future budgets untenable without additional government funding.”

If the proposals are agreed, the budget will allow £127m of net revenue investment and £98m capital investment in Darlington to add to the current capital programme of £317m. 

The council’s cabinet is due to meet next Tuesday to discuss the plans.