Transcript
Thank you for the Cabinet Meeting. I'm Councillor Andrew Husband, Leader of the Durham County Council Cabinet and Council and Chair of this meeting. This meeting is being broadcast live through our YouTube channel. Before we commence with today's formal business, I would like to cover some of the housekeeping issues for us all to follow. Please switch off or make silent your mobile phone and all other devices. Keep microphones switched off at all times unless invited.
To speak by myself as the chair. When invited to speak, please switch on the microphone nearest to you and introduce yourself. Thank you. So we'll move to item one. We have apologies for absence. I received apologies from Councillor Fox and Councillor Gray. Move to item two. We have public general questions, non-received. Item three minutes. Can I have a mover and a seconder to agree the minutes of the meeting held on 18th of June 2025, please.
Chair, I'll move the minutes.
Chair, I'll move the minutes.
Chair, I'll move the minutes.
Chair, I'll move the minutes.
Chair, I'll move the minutes.
Thank you. Does Cabinet agree the minutes of the last meeting are a correct record?
Item four, declarations of interest. Are there any declarations of interest from members?
Before we move into the substantive part of the agenda, we have received three member questions and two public questions specifically on item six.
I will ask the officer to present the report and then invite the questions to put their questions starting with the public questions and then the member questions.
The relevant cabinet member will then respond. Please note that there is no provision for supplementary questions or discussion in respect of the answers.
Item five, local council tax reduction scheme, 2026-27. Can I invite Paul Darby, corporate director of resources to present the report?
Thank you chair and good morning members. This report sets out proposals for change to the council's local council tax reduction scheme for next financial year, as well as the consultation and communication plans aligned to these proposals.
Members will see that since April 2013, local authorities have been required to develop and administer their own local council tax reduction schemes and have some discretion on the scheme that applies for working age residents.
Pension age claimants continue to follow the nationally set rules based on the proceeding council tax benefit system, which ensures that all local authorities follow a consistent approach when it comes to pension age claimants.
The locally led nature of the working age element of the scheme means that it varies significantly from authority to authority, with each council having discretion on the design and the administration of the scheme for working age claimants.
We are unable to make any changes to the pension age scheme.
The working age scheme has remained largely unchanged since 2013 and still mirrors the national council tax benefit system and support is consistently and currently uncapped with a potential 100% council tax award available to those based on a means tested benefit assessment.
In March 2025 there were just under 52,500 total claimants of which 32,500 or 62% were of working age.
The current total cost of the scheme is around 66.2 million with 41.3 million of this again around 62% linked to the working age cohort.
The working age scheme is complex and, as I mentioned, mirrors the previous national council tax benefit system, though instead of crediting an account with a cash payment, which was previously recalled from the government, the council tax reduction scheme provides a discount against the council tax liability, thereby impacting on the tax base calculation.
The report includes details of how the scheme works and how entitlement is assessed, with the level of support varying from person to person influenced by a range of factors, including the household makeup, the number of dependents, income sources, the council tax ban and any disabilities, which means it is incredibly complex to understand and to administer.
Since 2013, the ratio of working age to pension aid claimants has continued to increase, with the pensioner caseload now at the lowest it has ever been since the last 12 years.
The council does carry the full risk of any increases in the council tax claimant caseload and the full benefit of any decreases in the council tax claimant caseload.
Following a spike during the pandemic, the working age claimant caseload is now at its lowest level since 2013.
81% of the working age claimants are on universal credit and this is expected to increase to 96% by the end of 2025 and into 26.
Although the caseload has reduced, the cost of the scheme has increased due to council tax increases applied since 2013.
Administration workloads and costs have also increased due to an increase in the income and work linked to universal credit, where there are multiple changes in circumstances generated through that scheme.
Income and work has increased from around 169,000 changes to 191,000 over the last two years, during which time the caseload has actually reduced.
The current scheme was designed before universal credit was introduced and the migration accelerated.
And as the migration has rolled out, we have seen some significant impacts, including increased changes to customer rewards, triggering revised council tax bills, impact on direct debits, increased postage and printing costs, and increased staffing resources required to administer the scheme and keep performance levels to an acceptable level.
On average, a universal credit claimant receives around 11 council tax bills a year.
96% of the working age claimant caseload, around 31,000, are anticipated to be on universal credit by the end of the current migration window in 2026.
It is anticipated that we will see income and work exceed 300,000 work items without any change to the current scheme.
The report details a range of options available to the council.
Options 1 to 2C set out in the report consider a banded scheme with either no cap on support or capped at different levels between 90 and 75%.
Further options for changes set out in the report and consider the removal of the second adult rebate, which will be necessary if we move to a banded scheme,
the introduction of a fixed deduction for non-dependence and a reduction in the overall maximum capital limit.
The report also outlines the option of maintaining the current scheme, but this is not recommended from an officer's perspective.
The report includes the financial impacts and modelling of each of these options and reflects an assumed collection rate of 75% for the additional council tax that will be levied from any capping of the scheme.
Some benchmarking information on the regional collection picture is also included for members' information and there's a summary of the initial quality impact assessment screening is attached at Appendix 3,
which is essential to meet our legal requirements with regard to meeting the public sector of quality duties and has also been included in summary from paragraphs 165 to 169.
For members' information, this identifies that residents in Peter Lee, Stanley, Bishop Auckland and Furry Hill are the areas most likely to be impacted by change to a scheme where any cap is applied,
along with detail on the most common households impacted in those scenarios, which are claimants who are single with no children and that 62% of the current claimant caseload are female.
The report sets out details of the proposed consultation that will take place following the consideration of this report.
Members should note that it is a statutory requirement for us to publish details of any proposed changes and consult on those proposals and consider the feedback received before making any final decisions on the scheme that will be in place next year.
The consultation will seek opinions on the introduction of an income banded scheme to replace the current delivery model,
the removal of the second adult rebate to support those residents who do not qualify in their own right but do based on the circumstances of a non-liable adult residing in the property,
and on the introduction of a cap on the maximum level of support available.
The consultation will highlight options and impacts of a reduction from the current 100% available to the capping of the maximum support.
Each of these options present a reduction in the cost of the scheme to the Council and the report reflects the Council's share of these reductions if implemented that could be factored into any future MTFP modelling.
Finally, the consultation will seek views on two other specific circumstances in terms of changes to the scheme.
This would be the reduction of the maximum capital limit and the introduction of a flat deduction for non-dependents.
Both proposals would further simplify the administration, have the potential to reduce the cost to the Council and could be arguable to be fairer in terms of the overall scheme.
The consultation will take place over 10 weeks from July to September, with member engagement and web comms also in place.
There are details in the report of the proposed consultation and the decision-making timeframes.
The proposed content of the website and questions to be asked are also attached to the report and being developed with the support of the consultation team and in conjunction with the portfolio holder and deputy leader.
These are attached at appendix five, a direct email link to the consultation will be sent to all existing claimants that we where we hold an active email address.
Two online sessions will be held with our new local networks and there will be letters sent to key stakeholders such as town and parish councils and partner organisations.
So we can gather and gather as much feedback as possible on the proposals.
We promote this consultation via social media and provide briefings for wider members so that they are equipped to promote it and deal with any queries that they might get.
This report will be presented to the Corporal Overview and Scrutiny Management Board at its meeting in September and members views will be factored into the overall process.
Meanwhile, we will undertake some further benchmarking activity with neighbouring councils to ensure we understand the impact of any changes to the potential to cap the level of support, but also to better understand the overall collection rates that we might expect if we did cap that support.
Following the end of the consultation, all the feedback will be built into a decision-making report with recommendations for Cabinet to consider.
It is at this next stage of this journey where Cabinet will need to firm up the proposals.
The decision-making report will go to Cabinet on the 19th of November and then on to Council on the 10th of December, as ultimately changes to the scheme need to be approved by full Council.
We will need to factor any changes into our Council tax-based calculations, which will be presented to Cabinet on the 19th of November also.
The Cabinet report will be considered by Corporal Overview and Scrutiny Management Board in December in advance of Council, so that their input can be factored into the decision-making report to Council in December.
Any changes agreed by the Council in December will only be implemented from the 1st of April 2026 and therefore impact on next financial year.
Chair, the recommendations are set out of paragraph 20. Thank you.
Thank you.
Thank you, Paul. Can I invite Council Alliance, Cabinet Portfolio Holder for Stronger Communities and Belonging, to move the report?
Thank you, Chair. Can I thank the Corporate Director of Resources and his team, particularly Vicky Murray and Patrick Hetherington, in our transactional and customer services team for preparing this report, which outlines potential changes to the Local Council tax reduction scheme next year for work in Asia.
This Council is one of the most generous Council tax support schemes in the country in terms of the support available to working-age households, helping thousands of our most vulnerable residents each year, but it comes at a cost to other residents and maintaining it as its current level may not be sustainable.
The Council tax reduction scheme is one of the ways the Council seeks to help vulnerable and low-income households, with our welfare assistance scheme and household support fund also providing vital support to people in need.
More recently, the introduction of our free school meals auto-enrolment programme has resulted in almost 2,000 more families, saving hundreds of pounds on food costs over the current academic year.
We also continue to work closely with other public and voluntary sector organisations to tackle deprivation in our communities.
The report sets out a strong case for change to simply the current scheme, which still largely mirrors the National Council tax benefit system that the Local Council tax reduction scheme replaced over 12 years ago now, and which is becoming increasingly burdensome to administer as more and more of our working-age claimants are migrated onto universal credit.
The potential changes outlined in this report, which we are looking to consult on, would ensure we can continue to provide this much-need support while taking into account the increasing financial pressure Local Councils are under.
I must stress that none of the potential changes would impact on pension age households.
However, before any decisions are made, it is important that we find out what people think about the current scheme and the potential changes to it.
The consultation proposed will provide the opportunity for us to gather residents and other stakeholder views on these potential changes, which we will need to carefully reflect on before we make any decisions to amend the current scheme.
While still reducing a cap on the level of support available to working-age claimants would bring the Council scheme in line with the majority of other Councils, it is a decision not taken lightly and something we would need to carefully reflect on.
With that, Chair, I formally move the report and recommendations as set out at paragraph 20. Thank you.
Thank you. Can I invite Councillor Grimes, Cabinet Portfolio Holder for Finance, Policy and Communications, to second the report?
Thank you, Chair. Can I add my thanks to those of Councillor Lyons, to the Corporate Director of Resources and his team for preparing this report, which outlines potential changes to the Local Council Tax Reduction Scheme next year for working-age claimants.
It's important to reiterate that we are not making any decisions today on what the Local Council Tax Reduction Scheme will be next year.
The report makes a persuasive case for the introduction of a banded scheme to simplify the administration of that scheme, opening up the possibility for some savings in its administration,
but also to make the scheme easier to understand and reduce the volume of amended bills being issued to our residents as a result of the way that the universal credit system works.
Introducing a cap on the level of support available to working-age claimants would bring the Council scheme in line with the majority of other Councils, ensuring all our residents have a financial stake in and make a contribution to the Council,
helping us to protect frontline care services and address the social care emergency that we face.
Introducing a cap, though, it has to be said, is not taken lightly, especially not for a lad from Stanley.
And this is exactly why we want to consult far and wide and we seek views from a broad range of stakeholders as broad as possible over the next coming weeks.
We'll reflect carefully on the feedback that comes in and on the impact assessment before making any recommendations to Council in December.
And with that, Chair, I formally second the report. Thank you.
Thank you. Are there any other Cabinet members wishing to speak?
Does Cabinet agree the recommendations?
Thank you.
Move to Item 6, the Quarter 4, 2024-25 Performance Management Report.
Can I invite Steve Evans, Head of Corporate Affairs, to present the report?
Thank you, Chair. Good morning, everybody. I'm Steve Evans, Head of Corporate Affairs.
Our Quarter 4 Performance Report is the first since the spring election under the new administration.
This report sets out details of progress towards the targets and outcomes set out in the Council plan for 2024-2028,
covering the period up to the end of 2024-25 financial year.
The new Cabinet are setting out their priorities, which will be consulted on in the form of a new Council plan over the summer.
Subsequently, reporting against this new framework will begin in due course.
The scope of this report is intended to meet a range of monitoring requirements for various audiences.
This includes members, senior managers, employees, regulatory bodies and the public.
In doing so, the report provides an ongoing mechanism for scrutiny of performance for our services, and supporting ongoing transparency in doing so.
The report sets out progress against the strategic ambitions, objectives outlined in the Council plan,
and a range of key performance indicators contextualised with benchmarking data, where it is available, and information from service teams.
It includes a range of service level dashboards and supporting narrative, providing a clear golden thread between the priorities of this Council and the performance of operational services.
This is in line with the Government's best value principles.
Overall, performance is strong across many areas, with some key improvements over the last year, both in terms of the view of our regulators, such as the recent Ofsted rating of children's services as outstanding,
progress against strategic objectives, and when benchmarked against our peers regionally and nationally.
Importantly, this strong performance continues against statistical near neighbours.
As members will appreciate, this is a considerable achievement in the face of financial, inflationary and demand-driven pressures over the last few years.
Where there are areas of performance falling below our expectations, we are aware of them, and have improvement plans in place.
These are referenced within the report.
The main performance report is attached in Appendix 2, and the Executive Summary pulls out some of the key highlights.
Greater detail is contained within the chapters.
The performance data presented here will be reported to thematic overview and scrutiny committees in the coming weeks,
where there will be a chance for more in-depth analysis of the Council's performance and for them to feedback.
The Cabinet are asked to note the contents of the report. Thank you.
Thank you, Steve.
As I outlined earlier, we have received two public questions and three member questions in relation to this item.
I will take the questions from the public first.
Can I invite Mrs Susan MacDonald to ask her question, please?
Thank you, Chair.
Given the clear financial savings this Council has made over the last few years by investing in renewable energy and energy efficiency,
including the installation of solar panels?
Will the relevant Cabinet member confirm that this Administration will continue this course of action to ensure value for money for the Durham taxpayer?
Thank you.
Councillor Alison, Cabinet Portfolio Holder for Neighbourhoods and Environment.
Please could I invite you to respond to Mrs MacDonald's question, please?
Thank you.
I would like to thank the member of the public for the question and would advise that the Administration is currently undertaking a review of capital budgets and spend aims and ambitions for the county.
Thank you.
Thank you.
The next question on this item today is from Mr Chris Hood.
Mr Hood, can I ask you if you could ask this question, please?
Thank you, Chair.
Relating to the Corporate Performance Report, Quarter 4, 2024-25, specifically paragraphs 139 to 141 regarding recruitment, employment and the work of our social workers.
Given the positive impact this has had on the service in terms of both staff retention and service delivery, can the Cabinet member please confirm this new administration will continue with this approach?
Thank you, Chair.
Thank you.
Councillor Hunt, Portfolio Holder for Children and Young People Services.
Please can I invite you to respond to the question from Mr Hood.
Thank you, Chair.
I would like to thank Mr Hood for the question.
We recognise that it is essential for the Council to have a stable, high-quality workforce in children's social care if we automate the priorities of children and young people.
The recent Office Day report recognised the positive impact of stability in our children's social care workforce and I am committed to work with officers and further enhance the staff recruitment and retention within children's services.
Thank you.
Thank you.
We now move on to the questions from members.
Councillor Wilkes, would you like to ask your question please?
Good morning, Chair.
Paragraph 28 and 29 refer to the condition of our county's roads.
When we came into control in 2021 we made it our target to improve the condition of our county's unclassified and estate roads to the national average.
And the report states we achieved this with an improvement of 25% needing improvement to 17% and that all our roads are at least the same or better than the rest of England.
What the report actually doesn't say because the figures have only just been released is that this figure has now fallen further to just 11% of estate roads and unclassified roads needing repair under the previous administration which the Liberal Democrats were part of.
I am sure the new administration will want to congratulate us on this achievement but could they also please advise what their plan is to maintain or improve upon this and how it will be paid for.
Thank you.
Councillor McGinnis, Portfolio Holder for Rural Communities and Highways, please could I invite you to respond to Councillor Wilkes' question please.
In response to Councillor Wilkes' question, I would advise that the administration is currently undergoing a comprehensive review of capital budgets as was mentioned by Councillor Ellison to maximise, sorry, and spending in order to maximise outputs and benefits to the county residents.
Highways network condition is a key priority and we will continue to invest in it to ensure we fulfil our statutory duty and provide a safe and resilient highway network.
Thank you.
Thank you.
Councillor Alex Neill, can I invite you to ask your question please.
Thank you, Chair.
I note the report highlights the outstanding report for our children's services by Ofsted in March this year.
Please can the cabinet member confirm that all the excellent work that the previous administration and the officers have put in over the last four years will be carried on?
Can she also advise why the number of children in care whilst reported here in paragraph 112 are no longer being reported to the corporate parenting panel and that we will continue to treat all children in our care equitably, including those unaccompanied asylum seeking children?
Thank you.
Thank you.
Thank you.
Councillor Hunt, portfolio holder for children and young people's services.
Please, could I invite you to respond to Councillor Neill's questions, please, or question?
I would like to thank Councillor Neill for his question.
We are very proud of the excellent work of the children's services recognised by Ofsted in March this year and we are committed as an administration to make a positive difference to the lives of the children and young people.
I can confirm that reporting at the corporate parenting panel on numbers of children in care continues as part of a regular performance report presented to the panel.
I would direct Councillor Neill to item 11, quarter four performance update at the last corporate parenting panel agenda at the meeting held on the 6th of June.
The details and numbers and the rate of children in care by quarter with regional and national comparisons.
In addition, the slides presented at the panel at the meeting included details on the numbers of trends of children in care.
Thank you.
Thank you.
The final member question is from Councillor Amanda Hopgood.
Councillor Hopgood, would you like to ask your question, please?
Thank you, Chair.
Our economy states in paragraph 8 that our cultural venues are all performing well.
Will this administration commit to continuing to policy of culture led economic regeneration?
Also, paragraph 49 advises that data indicates we have 189,000 available jobs across the county with our strong performance economically.
Please, can the cabinet member advise what plans are in place to help fill any vacant posts?
Thank you.
In the absence of Councillor Fox, Portfolio Holder for Economy and Partnerships, please could invite Councillor Joe Quinn, Portfolio Holder for Investment and Assets, to respond to the question from Councillor Hopgood, please.
Thank you, Chair, and thank you, Councillor Hopgood, for your question.
Our culture venues attract more than 245,000 visitors, despite having two closures for improvement works, so we recognise the importance of a culture-led economic regeneration and the important role that this can play to improve places and infrastructure to revitalise towns, providing opportunities for residents, business and visitors.
Ensuring County Durham's residents are well placed to secure current and new jobs across the Council remains a key aspect of our economic work, which is essential if we are to supercharge the economy of County Durham.
Working with our partners, we are providing a wide range of high-quality employment and skills to support residents to secure these vacancies, including the continuation of People and Skills strands, which in 2425 supported 5,900 individuals to improve their skills and helped over 1,500 economically inactive residents progress towards work.
We will continue to deliver this programme in 2526, while we expand our supported employment offer through the Connect to Work programme, which will benefit those with learning disabilities, autism or long-term health conditions.
We are also shaping the regional employment and skills agenda through our work with the North East Combined Authority, with the proposed new deal for North East Workers Strategy, setting out delivery of an integrated, innovative regional employment and skills system aligned with national policy and local growth plans.
Thank you, Chair.
Thank you.
The recommendations are for noting and therefore do not require a mover or a seconder.
However, I'll just say a few words in this report.
So firstly, thank you to Steve for this comprehensive performance update.
As noted, this new administration has set new priorities in line with our overwhelming mandate following the last election.
These will be set out to officers at the next meeting of Cabinet in order to provide immediate clarity on new objectives, including cutting waste.
These will be included in a new county plan following consultation over the summer.
I've also asked officers to review the supporting performance framework as a part of this process.
There are many challenges that face us and other local authorities up and down the country, many of which are driven by the choices made by national government.
However, this administration will provide common sense governance that makes sense to local people and which delivers value for money.
Transparency of the Council's strategic planning and performance management arrangements is welcome.
We will build on this and going forward, we'll deliver practical outcomes at our residents' value.
Progress will be explained in language that is clear and understandable to the public, avoiding technical and legal jargon.
I note the good performance in this report, the recent outstanding judgment from Ofsted for our children's social care team is particularly impressive and we are pleased to be taking on a strong performance culture.
This provides a sound footing for the new administration to work with officers and deliver on its mandate of waste reduction, reform and improvement.
There are a range of areas to note which are summarised in the executive summary on the main performance report in Appendix 2.
Greater detail is contained throughout the report within the respective chapters and dashboards.
With that, I propose that the Cabinet note the report.
Moving to Item 7, 2425 Final Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management.
Can I invite Paul Darby, Corporate Director of Resources, to present the report?
Thank you, Chair and good morning again, members.
This is a very detailed report.
It sets out our revenue and capital outturn position, including the closing position on our general and EMAC reserves at the 31st of March 25.
The report also presents the closing position on the various blocks of the dedicated schools grant, including our maintained schools outturn and for the collection funds, both council tax and business rates.
Members will see 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.
Members will also note within there, though, that the social care children looked after placement budget was £15.46 million overspend last year.
And that's despite the significant increase factored into the 2425 budget of £15.2 million.
The CYPS overspend has once again needed to be picked up corporately.
If we exclude the children and young people services position, the other services were all underspent last year by a net £7.49 million, compared to a forecast £3.338 million net underspent forecast at quarter three.
The detailed reasons for under and overspending across each service area are set out at paragraph 61 to 84 in the report.
A combination of one-off issues, some recurring issues that were addressed as part of the 2526 budget and managed underspending in year.
For example, holding of vacancies, for instance, in advance of budget and MTFP savings in 2526.
At paragraphs 90 and 91, the report details a range of sums that have been treated as outside the service budgets and funded corporately.
These total £5.3 million and there are further detail in the report on those items of paragraphs 93 to 98.
In overall terms, once the CYPS overspend is accounted for, there was a corporate net overspend of £10.573 million in 2425.
That has been charged to the general reserve, offset by a £7.49 million underspend for other services which has been transferred to their cash limit e-mark reserves at year end.
The net position being an overall £3.083 million overspend last year.
The general reserve at year end was £21.488 million which accretes to 3.78% of our overall net budget requirement below the minimum 5% reserve requirement agreed by Council.
To replenish the general reserve back to the minimum 5% balance of the 2526 net budget requirement of £31.156 million, a year end transfer from the MTFP support reserve of £9.668 million has been required in closing the accounts.
This has reduced the balance on the MTFP support reserve to £22.911 million at the year end, though members should note that £3.5 million of this has already been committed to support the balancing of the 2526 budget.
The report identifies that the cash limit regime will be ended in the current year and that a review of all reserves is underway with a view to shoring up the MTFP support reserve and the ARVR reserve to help support the MTFP 16 process.
This will be something we will need to discuss in the coming weeks and months and factor into the quarter one and quarter two forecast of outturn reports to agree to transfers that will be necessary.
Appendix 4 to the report sets out details of all our E-marked reserves excluding schools, which total £168.679 million at the year end, an in-year reduction of £7.628 million, but less than the reduction that was forecast at quarter three.
The reserves position is set out in more detail of paragraphs 99 to 111, which also highlights our position in terms of the SIP for Resilience Index.
In terms of our maintained schools, there was a net underspend or contribution to their retained balances in the year. At quarter three, our schools were anticipating a net draw on reserves.
Of the 128 maintained schools on our books at the year end, 29 overspent or drew on their reserves last year, totaling £2.582 million, but 79 contributed to their retained balances in year, an underspend of £5.231 million, the net position being a £2.649 million contribution to retain balances.
The high needs DSG outturn was a £12.386 million overspend last year, down on the £13.343 million overspend forecast at quarter three.
The cumulative high needs DSG deficit position at the 31st of March is just under £23 million.
There is a cost to the council of servicing this cumulative deficit in terms of lost interest.
Paragraphs 133 to 142 provide an overview of the capital outturn and the proposed revisions to the programme.
This section of the report shows how the capital expenditure was financed and 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.
These capital budgets have been re-profiled into £25.26 and all of the capital programme commitments are currently being reviewed by the new cabinet, as members will be aware.
Details of the under and overspending against the revised capital budgets are set out in some detail at paragraphs 143 to 148.
The report also includes performance against the various treasury management prudential indicators as set out at paragraphs 149 to 163, which we subject to a separate report to council next week.
The final outturn for the council on the combined collection fund is a £2.726 million surplus.
When the budget was set for £25.26, it was forecast that the combined surplus would be £3.232 million.
The change in surplus will result in an undeclared deficit for the council of just over half a million pound, required to be accounted for as part of the £25.26 collection fund and the £26.27 budget setting process.
The council tax collection fund position is set out at paragraphs 165 to 174, whereas the business rates collection fund position is set out at paragraphs 175 to 180.
At paragraphs 183 to 185 of the report, the report concludes by providing an overview of the delivery of MTFP savings in 2425 and highlights that 88% of the savings that were agreed and factored into the budget last year were delivered, but that 12%, or around £965,000, were not.
Details of the undelivered savings are set out in the table of paragraphs 185 and are broadly split 50-50 between neighbourhoods and regeneration.
The recommendations are set out of paragraphs 42 and 43 and included in these are the cabinet's endorsement and approval of the amendments to the capital programme at the year end and to the transfer of reserves as being actioned as part of the statement of accounts.
Thank you, chair. Thank you, Paul. Can I invite Councillor Grimes, Cabinet Portfolio Holder for Finance, Policy and Communications to move the report?
Thank you, Chair. I'd like to thank the corporate director of resources and his team for what is a very comprehensive and thorough report, which provides a detailed breakdown of our financial performance across the last financial year and the position at the year end.
During 2024-25, the Council faced a range of financial challenges which placed pressure upon the Council's revenue budget and ultimately resulted in a net £3 million overspend last year.
The Council's challenging financial position was mainly caused by overspends in the children and young people services, grouping of £13.074 million last year, which was primarily associated with continued pressures in children and care placement costs and associated expenditure, which exceeded budget by £15.469 million.
Offset by some underspending elsewhere in the CYPS budget. It's this overspend that's contributed to the £10.573 million corporate overspend last year, which was offset by the other service groupings having a net underspend of £7.49 million last year.
If we ignore schools, the overall levels of reserves held by the Council has reduced by around £8.5 million when compared to the position at the 31st of March 2024, marks a 4.1% overall reduction in year, with earmarked reserves reducing by around £7.6 million last year and the general reserve reducing by circa £905,000 in year.
Once the transfer from the MTFP support reserve to the general reserve has been actioned.
Holding a general reserve at 5% of the Council's net revenue budget is prudent and appropriate for an organisation of our size and complexity and with the risks that we need to manage.
The report notes that the new leadership have initiated a review of reserves to realign and strengthen our corporate capacity as we plan ahead into MTFP 16 and beyond.
The outcome of this review will be factored into the quarter one forecast of out-turn report we'll consider in September.
The reserves held at 31st of March 2025 include grant funding received in quarter four that's been carried over to meet commitments in the current year.
Details of the grant funding and sums held on behalf of third parties, which totals nearly £21 million at 31st of March 2025, are included in Appendix 4 to the report.
The final out-turn for the Council on the combined collection fund is a £2.726 million surplus.
When the budget was set for £25.26 million, it was forecast that the surplus would be £3.232 million.
The change in surplus would result in an undeclared deficit for the Council of £0.506 million, required to be accounted for as part of the £25 to £26 collection fund and in the £26.27 budget setting process.
In terms of the capital programme, £233 million of capital expenditure was delivered last year, an extraordinary level of expenditure.
Whilst this was £55.7 million less than what was planned, I'm assured that there were good reasons for any slippage and underspending.
As the report outlines, the budget and funding related to this underspending has been reprogrammed initially, but all of these capital commitments are being looked at by the new administration to ensure they're in line with our priorities and ultimately the people's priorities.
We'll conclude this review over the summer and present any changes to the previous plans to a future cabinet meeting.
In summary, Chair, I'm satisfied that this report demonstrates that the Council has the necessary financial resilience and is exercising prudent financial management in very challenging circumstances.
This resolve and our Balanced Street strength will actually ensure that we're continued to be tested and will be required to actually, going forward, face the challenges we're facing now and in future.
They're not going to go anywhere.
And with that, Chair, I move the recommendations as set out in this report are paragraphs 42 and 43.
Can I also add my thanks to those of Councillor Grimes and Paul and his team for this detailed report and to all budget managers across the Council for the continued effective management of their budgets across the year.
I appreciate that managing the budget is difficult due to the scale and complexity of the Council, with inflationary and demand pressures making it challenging to set and maintain spending within budget, particularly in out social care services.
It is pleasing that the overspending in children and young people last year was largely offset by underspends and any of the 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 in a year of around 1 million, which we'll need to ensure are delivered in the current year now.
Of course, many of the inflationary pressures we face are also faced by other schools, both maintained and academies.
The outturned position for our maintained schools was a significant improvement on the 4.8 million of their retained reserves they had anticipated drawing on, but when the budget was set, with our maintained schools instead contributing a net 2.6 million to their reserves a year instead, with 79 of our 128 schools underspending and 29 overspending last year.
It was pleasing that there was improvement in the high needs DSG overspend to the year end, down from 13.3 million overspend forecast to quarter three to an overspend of 12.4 million to year end, with the cumulative deficit held increasingly to nearly 23 million at the 31st of March 2025.
Addressing these in-year and cumulative deficits and high needs is urgently needed and not continually kicked down the road, as this government appear to have done once again.
Last year, the council overspent, sorry, last year the council spent nearly 233 million of capital expenditure, an eye-watering sum, which comes with significant borrowing commitments.
Sustaining capital investment at such a high level is not sustainable, in my view, which is why we've initiated a review of the current commitments to see where savings can be made and to ensure these investments align to the new administration's priorities.
Unlike the previous Liberal Democrat Conservative administration, we are not comfortable with the levels of debt and expenditure that the capital programme commitments will result in, which we would see external debt rising to nearly £1 billion over the next four years.
In 2021, at the start of the previous administration, this figure was closer to £350 million.
With that, I am happy to second the recommendations as set out in the report of paragraphs 42 and 43, including the amendments to the capital programme to reflect slippage in the reprofiled capital programme in lieu of the review that this is underway, which we will report on in a future Cabinet report.
Thank you.
Are there any other Cabinet members wishing to speak?
Does Cabinet agree the recommendations?
Moving to item eight, Planning and Infrastructure Bill.
Can I welcome Tony Hanson, Corporate Director of Regeneration, Economy and Growth, to his first Cabinet meeting?
Tony, can I invite you to present the report?
Thank you, Chair, and good morning, everyone.
This report provides a summary of the Planning and Infrastructure Bill, including potential implications for County Durham.
It also seeks to approve responses to a number of working papers published by Government for comment.
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 the vital infrastructure we need.
The key provisions of the bill are set out in paragraphs 9 to 26 of the report and include changes to the role and size of planning committees, more flexibility about setting planning fees,
introducing a system of strategic planning across England, known as spatial development strategies, streamlining consent for major infrastructure projects,
people living near new electricity transmission infrastructure will receive up to £2,500 over 10 years off their energy bills, and reforms to the compulsory purchase order process.
The publication of the bill was followed by a number of working papers seeking views on some of the detail of the bill.
The Council's proposed responses to the working papers are attached to dependencies 2 to 6, but some of the key points to mention are as follows.
The Council broadly supports the key drivers for accelerating build-out rates, as outlined in the speeding up build-out paper.
The Council also supports placing accountability on developers to build out their sites in good times,
and welcomes the proposed delayed homes penalty for developers who fall materially behind pre-agreed build-out schedules.
The Council is generally in favour of the proposals to support the simplification of planning requirements for smaller builders set out in the Reform and Site Thresholds paper.
The Reform of Planning Committee paper seeks views on proposals around the delegation of planning functions and the size and composition of planning committees.
In response, the Council disagrees with having a national scheme of delegation, as it would provide an overly centralised approach,
and we will consider that the Council should retain the right to structure our own committee,
and that our existing mandatory training for members of planning committees is sufficient.
We support the proposal to increase the number of exemptions in the improvement of the implementation of biodiversity net gain,
as this will reduce the burden on smaller-scale developments and projects with recognised public benefit to biodiversity net gain.
Finally, we are concerned over the resource implications of requiring local authorities to monitor and enforce biodiversity net gain plans
associated with nationally significant infrastructure projects set out in the Biodiversity Net Gain for Nationally Significant Infrastructure Projects paper.
It should be noted that each of the working papers have different deadlines for responses,
but if agreed by Cabinet, all of the Council's responses can be submitted in time,
other than the speeding up build-out, which has already been submitted before the 7th July deadline,
but making it clear that the response is subject to Cabinet approval.
Chair, that concludes my report.
The recommendations are set out in paragraph 12 of the report.
Thank you, Tony.
Can I invite Councillor Brown, Cabinet Portfolio Holder for Adult and Health Services, to move the report?
Thank you, Chair, and thank you to the Corporate Director and his team for the report.
We support some of the measures set out in the Planning and Infrastructure Bill
and the Associated Working Papers in reducing the bureaucratic burden
and the removal of barriers to new developments and infrastructure.
However, the proposal set out in the Reform of Planning Committees paper
to centralise how planning committees operate could potentially see elected councillors
who have a close understanding of their communities,
stripped of their ability to make local decisions.
We therefore call on the Government to abandon these proposals.
I therefore propose the recommendations in paragraph 12 of the report.
Thank you, Chair.
Thank you.
Can I invite Councillor Alison, Cabinet Portfolio Holder for Neighbourhoods and Environment,
to second the report?
Thank you, Chair.
There are a number of good proposals in the Planning and Infrastructure Bill and Working Papers,
including the suggestion that those who live near electricity transmission infrastructure
will receive up to £2,500 over 10 years off their energy bills.
However, there are also some proposals that should not be taken forward
and it's therefore important that the Council respond to the consultations
and make our comments known.
I therefore second the recommendations in paragraph 12 in the report.
Thank you.
Are there any other Cabinet members wishing to speak?
Does Cabinet agree the recommendations?
Moving to Item 9.
Maintain schools' budget plans and permission to set deficit budgets 2025-2026.
Can I invite Paul Derby, Corporate Director of Resources, to present the report?
Thank you, Chair.
This is an annual report.
It provides an overview of the budget plans agreed by the 128 maintained schools
on our books for the coming year.
The report sets out the responsibilities of our schools' governing bodies
and of myself as the Chief Finance Officer, or Section 151 Officer,
in terms of agreeing those schools' budget plans.
The report highlights that 15 schools converted to academy status,
one school closed, and one nursery school amalgamated with a primary in 24-25.
The 15 schools converted with combined reserves totaling £1.371 million,
which they were able to retain.
The cumulative net's retained surplus balances for our 128 schools at the 31st of March 25 was £27.48 million,
an increase in year of £2.649 million, as I outlined earlier as part of the 24-25 outturn report.
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,
reducing the retained reserves to a forecast £19.669 million at the end of the current financial year.
Within this, 28 schools have set an in-year surplus budget, i.e. a budget to make a combined £974,000 contribution to their reserves in year,
and 100 have budgeted to draw on their reserves in order to balance their budgets.
For the financial year 25-26, there are five schools where I have needed to exercise my judgment to grant a licence deficit.
These schools are detailed at paragraph 41 to the report.
In all cases, the deficits proposed are within the scheme parameters, i.e. they are less than £750,000 and less than 20% of their budget share.
And for these schools have budget plans and medium-term financial plans to return them to a surplus position by March 2028.
Plans for a hesitant primary school, however, require some further development over the coming months to get to an equivalent position.
In concluding my presentation report, members should note that there are some significant financial challenges for our schools in the current financial year and beyond,
largely linked to reducing pupil numbers, particularly in our primary schools,
and the inflationary impact of pay awards and other costs outstripping additional funding allocations.
The recommendations, Chair, are set out of paragraph 10, which are for Cabinet to note this report.
Thank you.
Thank you, Paul.
The report is to note, so it does not require a mover or a seconder.
Can I invite Councillor Hunt, Cabinet Portfolio Holder for Children and Young People Services, to speak on the report?
Thank you, Chair.
I would like to move that we note the report as tabled, and in doing thank Paul and John Pease and their teams for the continued support
being provided to the 128 maintained schools.
As has been noted, there are five schools where our Chief Fine Officers had to exercise delegated powers to agree a licence deficit budget for 2025-26,
compared to none in 2024-25,
in no small part due to the withdrawal of additional funding for schools in financial distress provided by the previous Government,
which has been withdrawn by the current Government.
Our maintained schools are budgeting to utilise 7.8 million of their retained balances in 2025-26,
which is, if ultimately required, we'll see maintained balances reduced to 19.7 million at the end of the financial year.
It is important that we support, but also challenge our schools, to properly manage their budgets and ensure that school leadership teams,
including governing bodies, are living within their means and ensuring that they balance their books,
which can mean difficult decisions having to be made.
Given the fallen pupil numbers and the lack of any real-term increasing funding across the coming years,
I fear that more and more of our schools will struggle to balance the budgets in next year and beyond.
With that, Chair, propose the Cabinet to move the report.
Thank you.
Are there any of the Cabinet members wishing to speak?
Does Cabinet agree the recommendations?
Moving to Item 10,
Adult Social Care, Care Quality Commission, CQC,
CQC assessment update.
Can I invite Michael Lang, Interim Corporate Director of Adult and Health Services,
to present the report?
Thank you, Chair.
This report provides Cabinet with an update on progress following our Care Quality Commission,
the CQC assessment, during 2024.
The CQC assessment rated us as good.
Following the CQC assessment, we put in place a service improvement plan.
Paragraph 35 of the report summarises progress in implementing that plan.
We still have further work to do, for example,
on involving people who use services in a more formal and structured way.
We are currently consulting service users about an adult social care strategy.
This strategy and a further progress update will be the subject of a further report to Cabinet in early 2026.
Finally, Chair, Councillors may wish to note that we are very likely to be reassessed by CQC in mid-2026.
Thank you, Chair.
Thank you, Michael.
The recommendations are to note, and therefore do not require a mover or a seconder.
However, can I invite Councillor Howard Brown, Cabinet Portfolio Holder for Adult and Health Services,
to speak on the report?
Excuse me.
Thank you, Chair, and I would also like to thank the Corporate Director for Adult Services and his team for this report.
It is now almost one year on from the 2024 Quality Care Commission assessment,
which, as Michael said, resulted in an overall rating of good.
I am pleased to present this Adult Social Care Report, which provides an update to Cabinet.
The service has a strong focus on continually improving high-quality services and support to meet the needs of the people of County Durham.
The service improvement plan was strengthened to reflect the areas of practice in the assessment that were found to need further development.
I am assured that good progress is being made on the improvement plan.
Of particular note is the development of the Adult Social Care Strategy, a key action within the plan,
which will help support the activity of the service in their ability to be cohesive, ambitious, and focused.
It is also good to read that the self-assessment document is being refreshed in preparation for future assessment to reflect the strengths and improvement work for Adult Social Care.
I propose the recommendations set out in this report and look forward to receiving a further update in due course.
Thank you very much, Chair.
Thank you.
Can I invite Councillor Cathy Hunt, Cabinet Portfolio Holder for Children and Young People Services, to speak on the report?
Thank you, Chair.
The update in the report is positive and provides reassurance that actions within the service improvement plan are progressing well,
and importantly are being monitored robustly through appropriate governance arrangements.
Thank you.
I note that the service is committed to fostering a strong culture of learning and continuous improvement,
and the report provides assurance that significant work is ongoing to prepare for the future assessment.
Thank you, Chair.
Thank you.
Are there any of the Cabinet members wishing to speak?
And does Cabinet agree the recommendations?
I agree, Chair.
So that concludes today's meeting.
Thank you for your attendance.
Thank you, Chair.
Thank you, Chair.
I thank you for any interest in the Plawsworth and Kimblesworth Community Centre building.
Plawsworth and Kimblesworth Community Group, referred to in the report as the P&K Community Group,
Kimblesworth Community Centre and Recreation Ground, under a lease from the Council,
and carry out day to day-to-day management of the building, including general repairs and maintenance,
but they do not have any legal interest in the building.
This lack of any legal interest in the building limits them from maximising their access to external grants and other funding opportunities.
In 2016, a report was considered and agreed by the Cabinet at the time, acting in their capacity as trustees,
to apply to the Charities Commission to explore the scheme to the new CIO.
In order to fulfil the agreed recommendations of the previous report, Cabinet as trustees for the Charity,
which has now been concluded with no objections being received.
All parties are now satisfied that this is in the best long-term interest for the community centre and for the local community.
I've confirmed that they want to be appointed as trustees,
and once new trustees are in place, the Cabinet are to be retired as trustees,
and the Council have no longer any and will not have any ability to influence and nominate any trustees.
The objects of the Charity, which clearly states that its purpose is to be inclusive for all members of the community,
and are overseeing out at paragraph 13 to this report. Thank you, Chair.
Thank you, Paul.
Can I invite Councillor Lyons, Cabinet Portfolio Holder for Stronger Communities and Belonging, to move the report?
Thank you, Chair.
Can I thank the Corporate Director of Resources and his team for the support given to the Plawsworth and Kimblesworth Community Group Overmade
with the Coal Industry Social Welfare Organisation at this point?
I am satisfied that the proposal that the Council retires from this role as trustee,
and that the community group step in as trustees going forward is the best solution.
Though I acknowledge that this is subject to approval from the Charity Commission.
Stepping in and taking them from implementing improvements to those important local community facilities.
The community group have demonstrated their ability to run the centre over many years,
and are embedded in the local community.
So I am confident that once they can access other external funding,
the centre will go from strength to strength.
With that, Chair, I move the report and recommendations as set out at paragraph 13.
Thank you.
Thank you.
Can I invite Councillor Brown, Cabinet Portfolio Holder for Adults and Health Services, to second the report?
Thank you, Chair.
Again, can I also thank the Corporate Director of Resources and his team for preparing the report?
Most of my points are very similar to Council Alliance.
It is important that the Clauseworth and Kimmelsworth Community Centre remains accessible and inclusive for all.
The benefits of the community group being able to access external funding opportunities will help secure the building's future and unlock much needed investment.
The charitable objects of the community group clearly state that its purpose is to be inclusive for all members of the community.
I expect that this will be the case going forward.
With that, I am satisfied that the proposal that the Council retires as trustee,
and that subject to approval of the Charities Commission,
that the community group step in as trustees going forward.
I therefore second the report and recommendation set out in paragraph 13.
Thank you, Chair.
Thank you.
Are there any of the Cabinet members wishing to speak?
Does Cabinet agree the recommendations?
Thank you.
That concludes the special meeting.
Thank you all for your attendance.
Thank you.