A proposal to extend a council tax discount scheme which supports County Durham’s most vulnerable residents will be considered by councillors next week.
Durham County Council’s Local Council Tax Reduction Scheme offers a council tax discount to eligible residents on low incomes whether in work, unemployed or retired.
Just over 53,800 residents are currently benefiting from the scheme, with more than 41,000 receiving the maximum 100 per cent discount, meaning they pay no council tax.
When they meet next Wednesday (September 18), members of the council’s cabinet will consider making a recommendation to full council that the existing scheme is retained for another year.
Cllr Richard Bell, the council’s deputy leader and Cabinet member for finance, said: “We are the only council in the region to have retained entitlement for this support at the levels they were at when councils first introduced discount schemes 10 years ago.
“We continue to prioritise protecting our most vulnerable residents through very difficult times of huge pressure on household budgets.
“Of course, providing this level of support does come at a cost in terms of lost revenues and, if this proposal is agreed, we’d expect that sum to reach around £67million next year.”
The proposal is part of a financial update report that also details the savings the council expects it will have to make to balance the budget next year and beyond.
The report says the council needs to make £21.7m in savings for 2025/26 – even if council tax is increased by the maximum 2.99 per cent – and forecasts a budget gap of £64.1m over the next four years.
This is higher than previously forecast due to growing unfunded budget pressures, primarily in children’s social care and home to school transport.
Alongside this are anticipated pressures from pay and price inflation linked in part to the expected National Living Wage increases across the next four years
Also included in the report is a recommendation that Cabinet agree to a public consultation on areas from which further savings could be made.
“Like all councils, we are facing unavoidable financial pressures,” said Cllr Bell.
“These are being driven by rising costs, such as the increase in the National Living Wage, pay increases negotiated nationally, and increasing levels of demand, particularly for children’s social care and also for home to school transport, where our budget has trebled over the last six years.
“Every year it is increasingly difficult to balance our budgets with the funding received from the government and the income we are allowed to raise locally, which is primarily through council tax.
“We’ve always endeavoured to maximise savings in management and administration services to protect front line services. But that too, is becoming increasingly difficult.
“Without extra funding, front line services are inevitably going to be impacted going forward.
“We continue to lobby government for a fairer funding settlement that gives us some certainty over a number of years, unlike the current one-year settlements.”
If the recommendation to consult on a fresh set of savings proposals is agreed next week, a public consultation will follow with a view to a further report being brought to cabinet at the end of this year.
If the recommendation to extend the Local Council Tax Reduction Scheme for another year is agreed next week, it will be considered by full council on September 25.
