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Special Meeting, Cabinet - Wednesday 9 July 2025 12.00 pm

July 9, 2025 View on council website  Watch video of meeting or read trancript
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Summary

Durham County Council's Cabinet met to discuss a number of issues, including the transfer of trusteeship for the Plawsworth and Kimblesworth Community Centre and Recreation Ground and the local council tax reduction scheme. The Cabinet agreed to appoint the Plawsworth and Kimblesworth Community Group as Trustee of the Plawsworth and Kimblesworth Community Centre and Recreation Ground, and following their appointment, to approve the retirement of Durham County Council as Trustee. The Cabinet also agreed to launch a consultation on potential changes to the local council tax reduction scheme for working-age residents.

Plawsworth and Kimblesworth Community Centre and Recreation Ground

The Cabinet voted to approve the appointment of the Plawsworth and Kimblesworth Community Centre and Recreation Ground (P&K Community Group) as Trustee of the Charitable Scheme, and to approve the retirement of Durham County Council as Trustee, to take effect on appointment of the P&K Community Group as Trustee. They also agreed to delegate authority to Paul Darby, Corporate Director of Resources, to carry out the necessary work to facilitate the amendments to the Scheme.

Paul Darby, Corporate Director of Resources, explained that the P&K Community Group currently occupies the property and manages the building, but has no legal interest in it, which limits their ability to access external grants and funding opportunities. A report considered by the Cabinet in 2016 recommended applying to the Charity Commission to explore the possibility of the community group taking on the role of Trustee.

Councillor Nicola Lyons, Cabinet Portfolio Holder for Stronger Communities and Belonging, said that the community group had demonstrated their ability to run the centre and were embedded in the local community, and that she was confident that the centre would go from strength to strength once they could access external funding.

Councillor Howard Brown, Cabinet Portfolio Holder for Adults and Health Services, echoed these points, noting that the charitable objects of the community group clearly state that its purpose is to be inclusive for all members of the community, and that he expected this to continue to be the case.

The report to the Cabinet noted that the buildings and land are owned by Lambton (Guernsey) Limited.

Local Council Tax Reduction Scheme 2026-27

The Cabinet considered a report on potential changes to the local council tax reduction scheme for working-age residents in 2026-27 and agreed to launch a consultation on the proposals.

Paul Darby, Corporate Director of Resources, explained that local authorities have been required to develop and administer their own local council tax reduction schemes since April 2013, and have some discretion on the scheme that applies for working-age residents. Pension-age claimants continue to follow the nationally set rules. The working-age scheme has remained largely unchanged since 2013 and mirrors the national council tax benefit system, with a potential 100% council tax award available.

In March 2025, there were just under 52,500 total claimants, of which 32,500 (62%) were of working age. The total cost of the scheme is around £66.2 million, with £41.3 million (62%) linked to the working-age cohort. Mr Darby noted that the scheme is complex and difficult to administer, and that the ratio of working-age to pension-age claimants has continued to increase since 2013. He also noted that 81% of working-age claimants are on Universal Credit, and this is expected to increase to 96% by the end of 2025 and into 2026.

The report detailed a range of options available to the council, including a banded scheme with or without a cap on support, the removal of the second adult rebate, the introduction of a fixed deduction for non-dependence, and a reduction in the overall maximum capital limit. The report also outlined the option of maintaining the current scheme, but this was not recommended.

Councillor Nicola Lyons, Cabinet Portfolio Holder for Stronger Communities and Belonging, said that the council's current scheme is one of the most generous in the country, but that maintaining it at its current level may not be sustainable. She stressed that none of the potential changes would impact on pension-age households.

Councillor Darren Grimes, Cabinet Portfolio Holder for Finance, Policy and Communications, added that the report made a persuasive case for the introduction of a banded scheme to simplify administration, make the scheme easier to understand, and reduce the volume of amended bills being issued. He acknowledged that introducing a cap on the level of support available to working-age claimants was not a decision to be taken lightly, and that the council would consult widely on the proposals.

The consultation will take place over 10 weeks from July to September, with engagement from councillors and web communications. A direct email link to the consultation will be sent to all existing claimants where the council holds an active email address. Two online sessions will be held with local networks, and letters will be sent to key stakeholders such as town and parish councils and partner organisations. The report will be presented to the Corporal Overview and Scrutiny Management Board in September, and the Cabinet will consider a decision-making report with recommendations in November. Any changes agreed by the council in December would be implemented from 1 April 2026.

Quarter 4 2024-25 Performance Management Report

The Cabinet received the Quarter 4 2024-25 Performance Management Report, which sets out details of progress towards the targets and outcomes set out in the council plan for 2024-2028.

Steve Evans, Head of Corporate Affairs, said that overall performance was strong across many areas, with some key improvements over the last year. He noted the recent Ofsted rating of children's services as outstanding, and said that this strong performance continued against statistical near neighbours, despite financial, inflationary and demand-driven pressures.

During questions on the report, Mrs Susan MacDonald asked whether the administration would continue to invest in renewable energy and energy efficiency. Councillor Karen Allison, Cabinet Portfolio Holder for Neighbourhoods and Environment, responded that the administration was currently undertaking a review of capital budgets and spend aims and ambitions for the county.

Mr Chris Hood asked whether the administration would continue with the approach to recruitment, employment and the work of social workers. Councillor Cathy Hunt, Portfolio Holder for Children and Young People Services, responded that it was essential for the council to have a stable, high-quality workforce in children's social care, and that she was committed to working with officers to further enhance staff recruitment and retention within children's services.

Councillor Mark Wilkes asked about the condition of the county's roads. Councillor Tim McGuinness, Portfolio Holder for Rural Communities and Highways, responded that the administration was currently undergoing a comprehensive review of capital budgets and spending in order to maximise outputs and benefits to county residents, and that the highways network condition was a key priority.

Councillor Alex Neill asked whether the excellent work of the previous administration and the officers in children's services would be carried on, and why the number of children in care was no longer being reported to the corporate parenting panel. Councillor Cathy Hunt, Portfolio Holder for Children and Young People Services, responded that the administration was committed to making a positive difference to the lives of children and young people, and that reporting at the corporate parenting panel on numbers of children in care continues as part of a regular performance report.

Councillor Amanda Hopgood asked whether the administration would commit to continuing the policy of culture-led economic regeneration, and what plans were in place to help fill vacant posts. Councillor Joe Quinn, Portfolio Holder for Investment and Assets, responded that the council recognised the importance of culture-led economic regeneration, and that it was working with partners to provide a wide range of high-quality employment and skills support to residents.

Councillor Andrew Husband, Leader of the Durham County Council Cabinet, said that the new administration had set new priorities in line with its mandate following the last election, and that these would be set out to officers at the next meeting of the Cabinet. He added that the administration would provide common-sense governance that makes sense to local people and delivers value for money.

2425 Final Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management

The Cabinet considered a report on the 2425 Final Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management.

Paul Darby, Corporate Director of Resources, said that the children and young people services overspend last year was £13.074 million, marginally up on the £13.057 million net overspend forecast at quarter three, and that the social care children looked after placement budget was £15.46 million overspend last year, despite a significant increase factored into the 2425 budget. He noted that the CYPS overspend had once again needed to be picked up corporately, and that if this was excluded, the other services were all underspent last year by a net £7.49 million.

Mr Darby said that in overall terms, once the CYPS overspend was accounted for, there was a corporate net overspend of £10.573 million in 2425, which had been charged to the general reserve, offset by a £7.49 million underspend for other services which had been transferred to their cash limit e-mark reserves at year end. He noted that the general reserve at year end was £21.488 million, which accretes to 3.78% of the council's overall net budget requirement, below the minimum 5% reserve requirement agreed by the council.

He also noted that the high needs DSG outturn was a £12.386 million overspend last year, down on the £13.343 million overspend forecast at quarter three, and that the cumulative high needs DSG deficit position at the 31st of March was just under £23 million.

Mr Darby said that the capital outturn for capital spend last year was £233.734 million against a revised budget of £289.489 million, i.e. an in-year underspend of £55.725 million, and that these capital budgets had been re-profiled into £25.26.

He added that the final outturn for the council on the combined collection fund was a £2.726 million surplus, and that the change in surplus would result in an undeclared deficit for the council of just over half a million pounds, required to be accounted for as part of the £25.26 collection fund and the £26.27 budget setting process.

Finally, Mr Darby said that 88% of the MTFP savings that were agreed and factored into the budget last year were delivered, but that 12%, or around £965,000, were not.

Councillor Darren Grimes, Cabinet Portfolio Holder for Finance, Policy and Communications, said that the council faced a range of financial challenges during 2024-25, which placed pressure upon the council's revenue budget and ultimately resulted in a net £3 million overspend last year. He added that the council's challenging financial position was mainly caused by overspends in the children and young people services, and that it was this overspend that contributed to the £10.573 million corporate overspend last year.

Councillor Andrew Husband, Leader of the Durham County Council Cabinet, said that the overspending in children and young people last year was largely offset by underspends in other service groupings, with a manageable £3 million net overspend last year, though this position could and should have been better had it not been for the undelivered MTFP savings. He added that the council spent nearly £233 million of capital expenditure last year, an eye-watering sum which comes with significant borrowing commitments, and that sustaining capital investment at such a high level was not sustainable.

Planning and Infrastructure Bill

The Cabinet considered a report providing a summary of the Planning and Infrastructure Bill, including potential implications for County Durham, and seeking approval for responses to a number of working papers published by the government for comment.

Tony Hanson, Corporate Director of Regeneration, Economy and Growth, said that the bill was introduced to Parliament on 11 March 2025, with the stated purpose of speeding up planning decisions to boost house building and remove unnecessary blockers and challenges to the delivery of vital infrastructure. He noted that the key provisions of the bill include changes to the role and size of planning committees, more flexibility about setting planning fees, introducing a system of strategic planning across England, streamlining consent for major infrastructure projects, providing people living near new electricity transmission infrastructure with up to £2,500 over 10 years off their energy bills, and reforms to the compulsory purchase order process.

Mr Hanson said that the council broadly supports the key drivers for accelerating build-out rates, placing accountability on developers to build out their sites in good times, and simplifying planning requirements for smaller builders. However, he noted that the council disagrees with having a national scheme of delegation for planning functions, and is concerned over the resource implications of requiring local authorities to monitor and enforce biodiversity net gain plans associated with nationally significant infrastructure projects.

Councillor Howard Brown, Cabinet Portfolio Holder for Adult and Health Services, said that the proposal to centralise how planning committees operate could potentially see elected councillors stripped of their ability to make local decisions, and that the government should abandon these proposals.

Councillor Karen Allison, Cabinet Portfolio Holder for Neighbourhoods and Environment, said that there were a number of good proposals in the bill and working papers, but also some proposals that should not be taken forward, and that it was therefore important that the council respond to the consultations and make its comments known.

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

The Cabinet considered a report providing an overview of the budget plans agreed by the 128 maintained schools on the council's books for the coming year.

Paul Darby, Corporate Director of Resources, said that 15 schools converted to academy status, one school closed, and one nursery school amalgamated with a primary in 24-25, and that the cumulative net retained surplus balances for the 128 schools at the 31st of March 25 was £27.48 million, an increase in year of £2.649 million. He noted that the initial budget plans for the coming year for these 128 schools factor in an anticipated £7.811 million draw on these balances this year, and that there are five schools where he has needed to exercise his judgment to grant a licence deficit.

Councillor Cathy Hunt, Portfolio Holder for Children and Young People Services, said that there were five schools where the Chief Finance Officer had to exercise delegated powers to agree a licence deficit budget for 2025-26, compared to none in 2024-25, and that this was in no small part due to the withdrawal of additional funding for schools in financial distress provided by the previous government. She added that it was important that the council support, but also challenge, its schools to properly manage their budgets, and that she feared that more and more of the council's schools would struggle to balance their budgets in the coming years.

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

The Cabinet considered a report providing an update on progress following the Care Quality Commission (CQC) assessment during 2024, which rated the council as good.

Michael Lang, Interim Corporate Director of Adult and Health Services, said that the council had put in place a service improvement plan following the CQC assessment, and that paragraph 35 of the report summarises progress in implementing that plan. He noted that there was still further work to do, for example, on involving people who use services in a more formal and structured way, and that the council was currently consulting service users about an adult social care strategy.

Councillor Howard Brown, Cabinet Portfolio Holder for Adult and Health Services, said that the service has a strong focus on continually improving high-quality services and support to meet the needs of the people of County Durham, and that he was assured that good progress was being made on the improvement plan.

Councillor Cathy Hunt, Portfolio Holder for Children and Young People Services, said that the update in the report was positive and provides reassurance that actions within the service improvement plan are progressing well, and are being monitored robustly through appropriate governance arrangements.

Attendees

Profile image for Councillor Amanda Hopgood
Councillor Amanda Hopgood  Liberal Democrat
Profile image for Councillor Alex Neil
Councillor Alex Neil  Liberal Democrat
Profile image for Councillor Mark Wilkes
Councillor Mark Wilkes  Liberal Democrat

Topics

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