The Cabinet of County Durham Council met on Wednesday 16 September 2026. The Cabinet considered the council's Medium Term Financial Plan (MTFP) for 2027/28 to 2030/31, which forecasts a budget shortfall of £83.662 million before any new savings proposals or council tax increases are applied. This shortfall is £38.917 million higher than previously anticipated, largely due to increased inflationary pressures and demand on services, particularly in adult and children's social care. New savings proposals totalling £21.519 million have been identified, with £9.171 million sufficiently developed for implementation and a further £12.348 million identified as transformation-led savings requiring further development. The council plans to consult on these proposals, alongside options for council tax increases, from 21 September to 15 November 2026. The Cabinet noted the significant residual budget deficit of £62.143 million even after proposed savings, assuming no council tax increases. They also noted the impact of various council tax increase scenarios, acknowledging that even a 4.99% increase would still leave a small deficit. The Cabinet agreed to the high-level timetable for budget development and noted the strategic approach, governance framework, and delivery arrangements for the Changing Together Transformation Programme, which aims to modernise services and improve financial sustainability.

Medium Term Financial Plan (17) 2027/28 – 2030/31 Financial Forecasts

The Cabinet considered the council's Medium Term Financial Plan (MTFP) for 2027/28 to 2030/31, which forecasts a budget shortfall of £83.662 million before any new savings proposals or council tax increases are applied. This shortfall is £38.917 million higher than previously anticipated, largely due to increased inflationary pressures and demand on services, particularly in adult and children's social care.

New savings proposals totalling £21.519 million have been identified, with £9.171 million sufficiently developed for implementation and a further £12.348 million identified as transformation-led savings requiring further development. The council plans to consult on these proposals, alongside options for council tax increases, from 21 September to 15 November 2026. The Cabinet noted the significant residual budget deficit of £62.143 million even after proposed savings, assuming no council tax increases. They also noted the impact of various council tax increase scenarios, acknowledging that even a 4.99% increase would still leave a small deficit. The Cabinet agreed to the high-level timetable for budget development and noted the strategic approach, governance framework and delivery arrangements established for the council's Changing Together Transformation Programme, which aims to modernise services and improve financial sustainability.

C31 Crakehill Bank Landslip, Hamsterley

The Cabinet agreed to proceed with an application to the Magistrates' Court for an order to stop up the C31 Crakehill Bank road in Hamsterley, following extensive landslip and embankment slippage. Geotechnical investigations revealed that repair solutions, estimated to cost around £10 million, were no longer viable due to the risk of future ground movement. An alternative solution to realign the carriageway was also deemed too costly and risky. Therefore, the proposal is to permanently close the road and make the existing diversion route via the A68 permanent, with remediation works at the closure point and improvements to the diversionary route. The application to the Magistrates' Court will involve a public notification process and could be subject to judicial review.

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

The Cabinet noted the quarter one forecast outturn for the General Fund revenue budget, which indicated a net overspend of £1.641 million for 2026/27. This is a 0.24% overspend against the net revenue budget of £674.060 million. The overspend is primarily driven by pressures in children and young people's services (£10.3 million) and neighbourhoods and environment (£1.4 million), which are partially offset by underspends in other services and corporate budgets.

The forecast closing General Reserve balance is £38.047 million, which at 5.64% of the net budget requirement, meets the council's reserves policy. Earmarked reserves are forecast to decrease by £19.499 million to £164.358 million.

A significant concern highlighted was the forecast overspend on the High Needs Dedicated Schools Grant (DSG) block of £31.105 million, an increase from the previous year's overspend. The Cabinet noted that the council expects to receive £32.472 million of High Needs Stability Grant from the Department for Education, contingent on the approval of the SEND Local Area Reform Plan.

Amendments to the MTFP(16) capital programme were agreed, resulting in a revised capital programme of £293.212 million for 2026/27 and £725.116 million across the MTFP(16) planning period. The Cabinet also noted the forecast performance against treasury management indicators and the positive outturn position for the Council Tax and Business Rates Collection Funds, which are forecast to generate a combined surplus of £0.755 million for the council. Finally, the Cabinet noted the progress in delivering the £12.914 million of budget savings agreed for 2026/27, with 98.31% forecast to be delivered.

County Durham Youth Justice Service: Youth Justice Plan 2026-2027

The Cabinet noted and endorsed the County Durham Youth Justice Plan for 2026-2027. This statutory plan outlines the service's strategic priorities, performance, and key developments aimed at improving outcomes for children, victims, and communities. The plan highlights a 49.6% reduction in First Time Entrants since 2015/16 and continued reductions in custody use and overall offending. The service operates on a Child First framework, prioritising early intervention, diversion, and strengths-based approaches. The plan demonstrates a robust multi-agency model with strong governance and a pooled budget of £2.7 million. The Cabinet supported the continued multi-agency partnership approach and agreed for the plan to progress to County Council for information and endorsement.

Chester-le-Street Riverside

The Cabinet endorsed the approach set out for the Riverside Sports Complex and surrounding area, as a basis for further development and consultation, in partnership between the Council, the Football Foundation and wider partners. This place-based approach aims to position the town as a Town of Sport and a key component of the North East Mayor's Region of Sport. The proposals include the development of a community multi-sports hub, potential elite sport facilities, and improvements to Riverside Park. The Cabinet approved progression to the next stage of work, which includes detailed feasibility, planning pre-application engagement, and statutory and non-statutory consultation where appropriate. They noted the requirement for ongoing dialogue with Durham Women's Football Club regarding their ambitions for new elite sports facilities. The council has secured up to £200,000 from the Football Foundation for initial feasibility and design works on the community sports hub, with the council providing £133,333 as match funding. Other external funding opportunities, including for park improvements, will also be progressed. The indicative financial implications for the council include a potential 40% contribution to the community sports hub element, estimated at approximately £4.9 million, subject to further decision-making and external funding.

Durham Castle and Cathedral World Heritage Site Management Plan 2025-2035

The Cabinet endorsed the Management Vision and Objectives within Section 6 of the new Durham Castle and Cathedral World Heritage Site Management Plan for 2025-2035. This plan is a key instrument for the protection and management of the World Heritage Site, outlining how its Outstanding Universal Value will be conserved and safeguarded. The Cabinet also endorsed the delivery of the actions contained within Section 7, Appendix A of the Management Plan. The management plan has been developed through extensive collaboration and public consultation, and will serve as a material consideration in the planning process.

Review of Cockerels on Allotments

The Cabinet determined the Council's future policy position that show cockerels could be kept on allotments if permission was granted by the Council, which was the policy prior to the March 2026 decision. This decision follows consultation feedback, petitions, and stakeholder representations that raised concerns about animal welfare, practicalities, and the impact on traditional allotment practices. The Cabinet noted that statutory nuisance provisions will override any policy position, and a ban on cockerels would apply across an allotment site if a statutory nuisance is proven. They also noted the requirement for all poultry keepers to comply with Animal and Plant Health Agency (APHA) registration requirements and to provide evidence of this registration as a condition of their tenancy. Failure to comply may result in enforcement action. The Cabinet delegated authority to the Neighbourhood Protection Manager to implement the decision and agreed to review the Allotment Policy in three years' time.

Delegation of Powers: Section 21 of the National Parks and Access to the Countryside Act 1949 to Shincliffe Parish Council to create a new Local Nature Reserve

The Cabinet agreed the delegation of powers under Section 21 of the National Parks and Access to the Countryside Act 1949 to Shincliffe Parish Council, for the purpose of providing a new Local Nature Reserve at Shincliffe Pit Heaps. Shincliffe Pit Heaps is already a designated local wildlife site, owned and maintained by the Parish Council, which has Natural England's support and has received positive community feedback. The delegation means that all subsequent statutory consultation, management plan development, and ongoing management responsibilities and costs will remain with Shincliffe Parish Council.

Feryemount House Ferryhill - Option to Reacquire

The Cabinet agreed the recommendations contained within the report regarding the option to reacquire Feryemount House in Ferryhill. The specific recommendations were not detailed in the provided summary.

The meeting was confirmed as held, and decisions were made.