The Durham County Council Cabinet met to discuss the local council tax reduction scheme, performance management, budget outturns, the planning and infrastructure bill, school budgets, and adult social care. The cabinet agreed to consult on changes to the Local Council Tax Reduction Scheme, noted the Quarter 4 Performance Management Report, and approved amendments to the capital programme. They also discussed the Planning and Infrastructure Bill and the financial challenges facing maintained schools.

Local Council Tax Reduction Scheme 2026-27

Durham County Council is considering changes to its Local Council Tax Reduction Scheme (LCTRS) for working-age residents, with a public consultation planned for the summer. Paul Darby, corporate director of resources, explained that the current scheme, which mirrors the old council tax benefit system, is complex and costly to administer, especially with the increasing rollout of universal credit¹. Councillor Nicola Lyons, Cabinet portfolio holder for stronger communities and belonging, moved the report, highlighting that the council currently has one of the most generous schemes in the country, but maintaining it may not be sustainable. Councillor Darren Grimes, Cabinet portfolio holder for finance, policy and communications, seconded the report, stressing that no decisions would be made until after the consultation.

The proposed changes include:

• Introducing an income-banded scheme to simplify administration.
• Removing the second adult rebate².
• Capping the maximum level of support available.
• Reducing the maximum capital limit.
• Introducing a fixed deduction for non-dependents.

The consultation will seek views on these options, with financial modelling showing potential savings for the council. The report noted that residents in Peterlee, Stanley, Bishop Auckland and Ferryhill are most likely to be affected by any changes.

Quarter 4, 2024-25 Performance Management Report

The Cabinet reviewed the Quarter 4 Performance Management Report, which covers the period up to the end of the 2024-25 financial year. Steve Evans, head of corporate affairs, presented the report, highlighting strong performance across many areas, including the recent Ofsted rating of children's services as outstanding.

The report prompted questions from both the public and councillors:

• Mrs Susan MacDonald asked about the council's commitment to investing in renewable energy. Councillor Karen Allison, Cabinet portfolio holder for neighbourhoods and environment, responded that the administration is reviewing capital budgets and spending aims.
• Mr Chris Hood enquired about the council's approach to recruitment and retention of social workers. Councillor Cathy Hunt, portfolio holder for children and young people services, confirmed the administration would continue to enhance staff recruitment and retention within children's services.
• Councillor Mark Wilkes asked about plans to maintain improvements to the county's roads. Councillor Tim McGuinness, portfolio holder for rural communities and highways, stated that the administration would continue to invest in the highways network.
• Councillor Alex Neill sought confirmation that the work of the previous administration in children's services would continue. Councillor Hunt confirmed the commitment and clarified that reporting on children in care continues at the corporate parenting panel.
• Councillor Amanda Hopgood asked about plans to fill vacant job posts. Councillor Joe Quinn, portfolio holder for investment and assets, outlined plans to support residents in securing jobs through employment and skills programmes.

Councillor Andrew Husband, Leader of the Durham County Council Cabinet, noted the good performance in the report, particularly the outstanding Ofsted judgement, and stated that the new administration would deliver practical outcomes and value for money.

2024/25 Final Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management

Paul Darby, corporate director of resources, presented the 2024/25 Final Outturn report, which detailed the council's revenue and capital expenditure, as well as the collection fund and treasury management performance. Councillor Grimes moved the report, noting a £3 million overspend due to pressures in children's services. Councillor Husband seconded the report, highlighting the need to review capital commitments and reduce debt.

Key points from the report:

• A £3 million overspend, mainly due to overspends in children and young people services.
• A £13.074 million overspend in children and young people services, primarily due to children in care placement costs.
• A £233 million capital expenditure, less than planned due to slippage and underspending.
• A £2.726 million surplus on the combined collection fund.
• 88% delivery of MTFP savings, with £965,000 undelivered.

Planning and Infrastructure Bill

Tony Hanson, corporate director of regeneration, economy and growth, presented a report on the Planning and Infrastructure Bill, outlining potential implications for County Durham. Councillor Brown, Cabinet portfolio holder for adult and health services, moved the report, expressing concern about the centralisation of planning committee operations. Councillor Allison seconded the report, highlighting the importance of responding to the consultations.

The report summarised the bill's key provisions, including changes to planning committees, fees, spatial development strategies, and compulsory purchase orders. The council's proposed responses to the working papers included:

• Supporting measures to accelerate housing build-out rates.
• Favouring efforts to support SME builders.
• Disagreeing with a national scheme of delegation for planning functions.
• Supporting proposals to increase exemptions to biodiversity net gain.
• Raising concerns about the resource implications of monitoring biodiversity net gain for nationally significant infrastructure projects.

Maintained Schools Budget Plans and Permission to Set Deficit Budgets 2025-2026

Paul Darby presented a report on the budget plans of the 128 maintained schools for the coming year. Councillor Hunt spoke on the report, noting that five schools had been given permission to set a deficit budget for 2025-26, compared to none in 2024-25.

Key points:

• 15 schools converted to academy status, retaining £1.371 million in combined reserves.
• The 128 schools have a cumulative net retained surplus of £27.48 million.
• The initial budget plans anticipate a £7.811 million draw on these balances this year.
• Five schools have been granted a licensed deficit.

Adult Social Care, Care Quality Commission (CQC) Assessment Update

Michael Lang, interim corporate director of adult and health services, presented an update on progress following the Care Quality Commission (CQC) assessment, which rated the council as good. Councillor Brown spoke on the report, highlighting the service's focus on continuous improvement. Councillor Hunt noted the positive update and the commitment to continuous improvement.

The report summarised progress in implementing a service improvement plan, with further work needed on involving people who use services. A further report to Cabinet in early 2026 will include an adult social care strategy. The council is likely to be reassessed by CQC in mid-2026.

Plawsworth and Kimblesworth Community Centre

The Cabinet considered a report regarding the Plawsworth and Kimblesworth Community Centre. Councillor Lyons moved the report, expressing satisfaction that the community group would step in as trustees. Councillor Brown seconded the report, emphasising the importance of accessibility and inclusivity.