The County Durham Council Cabinet is scheduled to convene on Wednesday, 18 March 2026, with a packed agenda covering a range of significant local issues. Key discussions are expected to include an interim policy on houses in multiple occupation, the progress of the 'Pride in Place' regeneration programme, and an update on the council's financial performance and budget forecasts.

County Durham Plan Houses in Multiple Occupation Interim Policy

A key item for discussion is the proposed interim planning policy for Houses in Multiple Occupation (HMOs) outside of the existing Durham City Article 4 areas. This policy aims to control the spread of HMOs in areas where their numbers have increased, potentially impacting residential amenity and community cohesion. The report outlines plans to consult on this interim policy, which would be used as a material consideration when assessing future planning applications for HMOs in these areas. The policy seeks to ensure HMOs contribute to mixed and balanced communities, protect neighbouring amenity, and provide a high standard of amenity for occupants.

Pride in Place Programme

The Cabinet will receive an update on the expansion of the Ministry of Housing, Communities and Local Government's (MHCLG) Pride in Place Programme (PiPP). This £5 billion initiative aims to support long-term, community-focused regeneration by empowering local neighbourhoods. Four neighbourhoods in County Durham have been selected to participate: Spennymoor (Phase 1), and Crook North/Tow Law, East Peterlee, and South Stanley (Phase 2). Each selected neighbourhood could receive up to £20 million over a 10-year period. The report details the next steps, including the establishment of Neighbourhood Boards, governance requirements, and community engagement processes for creating Pride in Place Investment Plans.

Quarter Three 2025/26 Performance Management Report

This report provides an update on the council's progress towards achieving the strategic ambitions and objectives set out in its Council Plan for 2025-2030. The KPIs are presented through dashboards focusing on trends, direction of travel, benchmarking, and performance against targets, framed within the wider national context. The report highlights areas that are going well and issues we are addressing across the council's five strategic ambitions: Reforming the Council, Supercharging Our Economy, Building Better Communities, Caring For Our People, and A Practical Environmental Stewardship.

2026/27 Quarter Three Forecast Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management

This report will provide Cabinet with the quarter three updated forecast outturn positions for the council's revenue budget, Dedicated Schools Grants and School Budgets, capital programme, and Treasury Management for the 2025/26 financial year. It will also detail the forecast outturn for the Council Tax and Business Rates collection fund, an overview of reserve movements, and an update on the achievement of the Medium-Term Financial Plan savings plan targets. A significant point of discussion is expected to be the forecast Dedicated Schools Grant cumulative deficit balance of £41.880 million, largely driven by Special Educational Needs and Disabilities (SEND) High Needs Block overspends. The report notes potential government funding through a new High Needs Stability Grant, which could cover up to 90% of cumulative deficits.

Local Nature Recovery Strategy

The Cabinet will consider the proposed publication version of the Local Nature Recovery Strategy (LNRS). This statutory requirement, introduced by the Environment Act 2021, aims to establish local priorities and map proposals for actions to drive nature's recovery and deliver wider environmental benefits. Durham County Council has been leading on the preparation of this strategy in conjunction with various partners. The report outlines the extensive consultation process undertaken, including engagement with land managers, residents, and schools, and details the feedback received, which has informed the final proposed version of the strategy.

High Street Rental Auctions

This report seeks to note consultation responses on proposed High Street Rental Auction (HSRA) designations in Bishop Auckland and Stanley, and to outline the next steps for implementation. HSRAs are a new power introduced by the Levelling Up and Regeneration Act 2023, allowing local authorities to auction leases for commercial properties that have been vacant for over 12 months. The report details the consultation feedback, proposed boundary confirmations, and the resource and capacity implications for operating these pilot schemes, noting that costs are eligible for Government New Burdens funding.

Updated Allotment Policy, Tenancy Agreement and Transition Rule – Post Consultation

Following a public consultation in January 2026, this report seeks approval for amendments to the County Council's Allotment Policy, Tenancy Agreement, and Transition Rules. The proposed changes aim to provide clearer, fairer, and more flexible rules, particularly concerning cultivation expectations, animal-keeping, and the handling of long-standing caravans. Key recommendations include reducing the minimum cultivation requirement to 50%, clarifying rules on fruit crops, allowing historic caravans to remain until tenancy ends, and introducing a more compassionate succession process for co-workers.

Changes to Local Networks from April 2026

This report outlines proposed changes to the Council's Local Network model, effective from 1st April 2026. The principal changes involve amendments to the geographical boundaries of two network areas and a revised governance structure, including the creation of an Elected Member Board and changes to Stakeholder Panels. The report also sets out the potential development of a Locality Board to provide strategic oversight and improve the interface between Local Networks and the council's strategic direction. Local Network Action Plans (LNAPs) will be developed to guide locality working and align council and partner activity.

Corporate Peer Challenge Action Plan

The Cabinet will consider and approve an action plan developed in response to the recommendations of the Corporate Peer Challenge (CPC) conducted in October 2025. The report highlights the council's strengths, areas for improvement, and key recommendations from the CPC. It also provides an interim update on the implementation of the action plan, noting that significant progress has already been made, with 92% of actions reported as complete or in progress. The council is also preparing for the LGA peer team's re-engagement in July 2026 for a progress review.