The Durham County Council meeting on Wednesday 18 February 2026 focused heavily on the council's financial future, with significant decisions made regarding the budget, council tax, and the medium-term financial plan. The council also debated and voted on a motion concerning the re-industrialisation of County Durham and addressed concerns about healthcare provision at Shotley Bridge Hospital.

Budget and Council Tax Setting

A key decision was made regarding the council's financial planning for the upcoming years. The council noted the updated 2026/27 budget and Medium-Term Financial Plan (MTFP) for 2026/27 to 2029/30, which incorporates the Provisional Local Government Finance Settlement. A significant deficit of £9.344 million is forecast for 2026/27, rising to £51.792 million over the MTFP period, assuming a 0% Council Tax increase. To balance the budget for 2026/27, the council resolved to recommend a circa 3.1% increase in Council Tax.

Furthermore, the council approved the proposal to fully align the existing Council Tax Section 13A(1)(c) Reduction Policy with government regulations from April 2026. This means no additional discretionary relief will be offered for empty properties and second homes beyond statutory requirements, and relief will be limited to a maximum of 12 months. The decisions were made following consideration of budget consultations and equality impact assessments. The full details of the financial planning assumptions and proposed savings are available in the Cabinet Report to Council - 18 February 2026.

Re-industrialising County Durham

A significant debate took place regarding a motion proposed by Councillor Kyle Genner, which aimed to position Durham as the Industrial heartland of Britain and commit to an economy first approach to local regeneration, including exploring resource and energy exploration. An amendment, moved by Councillor Elizabeth Scott, sought to reframe the motion to focus on continuing economic resurgence and building on existing growth, while ensuring economic growth and environmental sustainability work in harmony.

After extensive debate, the amendment was put to a named vote and was lost. Subsequently, the original motion was also put to a named vote and was carried. The motion commits the council to reversing decline, building a strong local economy, and exploring opportunities for re-industrialisation, including energy and resource exploration. It also advocates for a pragmatic approach to environmental protection, balancing it with the utilisation of natural resources for economic benefit.

Shotley Bridge Hospital and Healthcare Provision

A motion was passed unanimously, expressing deep concern over the continued overnight closure of the Urgent Treatment Centre (UTC) at Shotley Bridge Hospital and the delay in constructing a new hospital. The motion highlights that the extended closure reduces access to urgent healthcare for a significant local population and that the absence of a published recovery plan for workforce recruitment raises serious concerns.

The council resolved to formally state its view that the continued failure to restore overnight UTC provision and progress the new hospital build risks breaching statutory obligations by both central government and NHS bodies. It calls upon the Secretary of State for Health and Social Care and NHS leadership to restore overnight UTC provision without delay, publish a clear, time-bound plan for workforce recruitment and service stabilisation, and release capital funding for the new hospital. Furthermore, the NHS is required to convene an in-person public meeting with affected communities, and the Chief Executive and Leader of Durham County Council are instructed to formally write to the Secretary of State and relevant NHS bodies outlining these concerns.

Adult Social Care Strategy and Service Improvement Plan

The Cabinet's decisions regarding Adult Social Care were noted by the council. This included the approval of the Adult Social Care Strategy 2025-2028 and the Adult Social Care Service Improvement Plan 2025-2027. The council also acknowledged the contents of a revised self-assessment for Care Quality Commission (CQC) assessment purposes, with a review to be conducted prior to future CQC assessments.

Housing Allocations Policy Review

The council was informed about the progress on reviewing the Housing Allocations Policy. The Cabinet had approved an eight-week public consultation period, commencing 16 February 2026, on a draft policy. The Corporate Director of Regeneration, Economy and Growth, in consultation with relevant portfolio holders, has been delegated the authority to make minor modifications and adopt the policy following the consultation, unless significant changes necessitate a return to Cabinet.

Corporate Peer Challenge

The council acknowledged the final report and recommendations from the Corporate Peer Challenge (CPC) undertaken from 7 to 10 October 2025. The council's response to these recommendations was approved, and a plan to develop an action plan will be integrated into the corporate service planning process and Extended Management Team discussions. A future report will provide an update on progress against the CPC recommendations, with the action plan to be approved in March 2026. The final report will be published on the council's website.

Appointment of Independent Members to the Independent Remuneration Panel

The council agreed to reappoint Joyce Drummond-Hill and Raymond Morris to the Independent Remuneration Panel. Alan Fletcher was thanked for his contributions between 2015 and 2025. Claire Bailey, Paul Burdon, and Clement O'Donovan were appointed to the panel for a four-year term from 2026-2030, bringing the panel's total membership to five. Authority was delegated to the Corporate Director of Resources, in consultation with the Leader and Deputy Leader, to recruit and appoint to any future vacancies.

Adoption of the Startforth Neighbourhood Plan

The Startforth Neighbourhood Plan was formally adopted by the council, becoming part of the statutory development plan. The Director of Legal and Democratic Services was authorised to take all necessary steps to effect this adoption, including the required publicity. This followed the plan passing independent examination in September 2025.

Updated Local Code of Corporate Governance

The updated Local Code of Corporate Governance (LCoCG) was received, approved, and adopted. This code had previously been considered and approved by the Audit Committee on 26 November 2025. Discussions during the meeting touched upon the council's commitment to ethical values and the consideration of scrutiny comments by the Cabinet.

Overview and Scrutiny Update

Councillor John Cook, Chair of the Corporate Overview and Scrutiny Committee, presented a six-monthly update on the committee's work. He outlined the direction of travel for overview and scrutiny, emphasising the importance of parity of esteem between Cabinet and Scrutiny, and the move towards a more intelligence and risk-based function. The report was noted by the council.

Appointment of Chairs and Vice-Chairs of Committees

Following nominations and a vote, Councillor I Catchpole was appointed Vice-Chair of the Audit Committee, Councillor D Saunders as Vice-Chair of the Area Planning Committee (South and West), and Councillor S Franklin as Chair of the General Licensing and Registration Sub-Committee (2). An amendment to appoint Councillor C Martin as Vice-Chair of the Audit Committee was lost.

Questions from Members

Councillor Amanda Hopgood questioned the Leader of the Council regarding the approval of the Corporate Peer Challenge and the evidence assessed. The Leader confirmed the timeline of the approval and highlighted positive comments from the peer challenge report. Councillor Hopgood then questioned the Leader's attribution of credit for the work, suggesting it was from the previous administration.

Councillor Mark Wilkes raised concerns about a proposed 40% increase in permit parking charges. Councillor T McGuinness, Cabinet Portfolio Holder for Finance, responded that no commitment was given to remove or pause the increase, stating it was necessary to ensure the parking permit scheme remains fully self-financing. He indicated a willingness to discuss the matter further with Councillor Wilkes. Councillor Wilkes also raised concerns about a 33% increase in permit charges for business owners, to which Councillor McGuinness would provide a written response.