The Corporate Overview and Scrutiny Management Board (COSMB) met on 4 September 2025, to discuss a range of topics including a review of the Local Council Tax Reduction Scheme, the council's financial outturn, performance management reporting, and scrutiny development. The board also received updates on petitions and key decisions.

Here's a summary of the key discussion points:

• Local Council Tax Reduction Scheme (LCTRS) Review The board reviewed proposals for changes to the LCTRS for working-age residents, aimed at simplifying the process and achieving administrative efficiencies and potential budget savings. The proposals included introducing an income banded scheme and capping the maximum support level. A public consultation was conducted from July to September 2025 to gather feedback on the proposed changes. The board provided feedback on the options and noted that the cabinet and full council would consider capping entitlement for working-age claimants after the consultation.

• Financial Outturn 2024/25 The board examined the final financial outturn for the 2024/25 revenue budget, capital budgets, Collection Fund, and treasury management. The 2024/25 Revenue Budget was overspent by £3.083 million. The board noted the increase in the Dedicated Schools Grant Cumulative Deficit Balance to £22.981 million. The board also noted the proposed changes to the LCTR scheme. The final capital outturn position for 2024/25 showed capital expenditure totalling £233.734 million.

• Scrutiny Development and Continuous Improvement The board discussed ways to improve operational efficiency, reduce duplication of reporting, and ensure compliance with statutory requirements. A more agile approach to committee meetings was suggested, with a smaller governing board and thematic committees. A pilot programme within the Adults, Wellbeing & Health Overview and Scrutiny Committee was proposed to test the new methodology. The board was asked to consider adopting a SMART-aligned performance objectives framework.

• Update in Relation to Petitions The board received a quarterly update on the status of petitions received by the council. Since the last update, two new e-petitions and two new paper petitions had been submitted, and responses had been provided.

• Report on the Council's use of powers under the Regulation of Investigatory Powers Act 2000 (RIPA) The board were informed about the council's use of powers under RIPA during the period of 1 April 2025 to 31 June 2025. During quarter 1 there were three directed surveillance applications presented to the Court, relating to the sale of illicit tobacco products. There were no Covert Human Intelligence Source (CHIS) applications during quarter 1.

• Notice of Key Decisions The board considered the list of key decisions scheduled to be considered by the executive, noting items for Cabinet to take key decisions at its meeting scheduled to be held on 17 September 2025, and those key decisions that are currently scheduled to be considered by the Executive up to December 2025.

Local Council Tax Reduction Scheme 2026/27

The board considered the report of Paul Darby, Corporate Director of Resources, and Councillor Nicola Lyons, Cabinet Portfolio Holder for Stronger Communities and Belonging, regarding the Local Council Tax Reduction Scheme 2026/27.

The report set out proposals for change, following a review of the Local Council Tax Reduction Scheme for working age residents, which will provide either, process simplification, administrative efficiencies, budget savings or a combination of all three in 2026/27, and to outline consultation and communication plans and timelines aligned to the proposals.

The report outlined proposals for the introduction of an income banded scheme and options for the delivery of a cost neutral model, and explored further cost saving opportunities, both to the current scheme, in addition to the introduction of an income banded scheme, where maximum support is capped and the opportunities, benefits, risks and implications of any such changes.

The report recommended that the Corporate overview and scrutiny board:

• note the content of the report and the information contained within, including how the changing welfare benefits system has highlighted increased limitations to the council's current CTR scheme.
• provide feedback on the options outlined within the report and
• note that Cabinet and full Council, post-consultation, will need to consider whether as part of move to an income banded scheme, the council seeks to cap entitlement for working age claimants. The decision making report of which will return to Corporate Overview and Scrutiny Board in December 2025.

Since April 2013 local authorities have been required to develop and administer their own Council Tax Reduction (CTR) scheme for working age (WA) residents. Pension Age (PA) CTR continues to follow nationally set rules, based on the preceding Council Tax Benefit (CTB) system.

Durham County Council's working age Council Tax reduction scheme is a means tested support scheme where an individual's household, income, capital and personal circumstances are all considered to establish an applicable amount, which is then compared against a person's actual income. This is very much in the style of the former Council Tax Benefit system and the existing Housing Benefit system.

The potential award is up to 100% of a claimant's Council Tax liability, with support uncapped currently. Durham County Council is in the minority of councils to offer uncapped support, though in recent years there has been a trend of councils reducing the cap in place and moving back towards up to 100% support in certain circumstances.

The council's scheme has remained in its current format since 2013, during which time Welfare Reforms have made significant changes to the national benefit system, including the migration from legacy benefits to Universal Credit. This transition is anticipated to conclude in 2026 and has been accelerated in recent months.

Currently the council has approximately 32,600 working age LCTR claimants, at a cost of £41.6million. The majority of these claimants receive 100% support and therefore have no stake in or make any contribution to the cost of services provided by the Council.

A common change to the delivery model made by many Local Authorities has been the introduction of a banded scheme. This replaces the traditional CTB style scheme, where a claimant's entitlement represents a percentage of their total bill depending on which band their circumstances and income results in them falling into.

A move to a banded scheme is becoming increasingly necessary following the acceleration of Universal Credit migration, and the timeline for migration being brought forward from 2028 to September 2024.

The benefits of a banded scheme are that it prevents a new CTR calculation, and a new council tax bill being generated for even the smallest of changes in circumstance. Under Universal Credit a real time calculation is completed every month resulting in changes to entitlement which can result in a new council tax bill being issued every month.

A banded scheme also simplifies the administration of LCTR and offers opportunities for efficiencies alongside opportunities for reducing printing and postage costs because of reducing the number of bills issued to a resident. It also aids recovery of sums due as residents are not faced with multiple changing liabilities and instalments.

Whilst support is currently uncapped with up to 100% of a residents Council Tax liability being available the introduction of a cap can also be considered alongside the introduction of an income banded scheme.

The introduction of a cap would result in all working age residents required to pay a minimum amount towards their council tax liability – meaning that all residents, regardless of their financial circumstances, would have a stake in and make a contribution to the services provided by the Council.

The report outlined proposals for the introduction of an income banded scheme and options for the delivery of a cost neutral model i.e. the cost of the future scheme will be equal to that of the current scheme, before any changes to staff or administration costs are factored in.

It also explored further cost saving opportunities, both to the current scheme, in addition to the introduction of an income banded scheme, where maximum support is capped and the opportunities, benefits, risks and implications of any such changes. A range of options are set out in the report, with stakeholder and public consultation to be undertaken on the broad range of options outlined.

To support decision making a public consultation is being conducted through July to September 2025 to gather resident's and stakeholder views on the proposed changes to the working age scheme.

Extensive promotion of the consultation is underway along with partner and elected member liaison to maximise the volume of resident feedback and make best efforts to engage both residents already in receipt as well as those who are not currently in receipt of local council tax reduction support.

Analysis of the resulting feedback and development of a recommendations report is scheduled for completion by quarter three 2025/26, so that any decisions for change can be factored into the Tax Base calculations for 2026/27.

The report outlined the following proposed options for change:

• Option 1 - Banded scheme, simplified model 100% maximum support
• Option 2 - Banded scheme, simplified model with a cap on the maximum support level
  • Option 2 (a) - Banded scheme (Maximum support capped at 90%**)
  • Option 2 (b) - Banded scheme (Maximum support capped at 80%**)
  • Option 2 (c) - Banded scheme (Maximum support capped at 75%**)
• Option 3 - Scheme changes
  • Second Adult Rebate
  • Non-Dependant deductions
  • Capital Changes

The board was asked to note the content of the report and the information contained within, including how the changing welfare benefits system has highlighted increased limitations to the council's current CTR scheme, provide feedback on the options outlined within the report, and note that Cabinet and full Council, post-consultation, will need to consider whether as part of move to an income banded scheme, the council seeks to cap entitlement for working age claimants. The decision making report of which will return to Corporate Overview and Scrutiny Board in December 2025.

Scrutiny Development and continuous improvement

The board considered the scrutiny development and continuous improvement report and presentation of Councillor J Cook, Chair, and Councillor B Quirey, Vice Chair, which outlined issues that Corporate Overview and Scrutiny Management Board members have identified together with the solution to these issues in data reporting from the council, and to strengthen the scrutiny function for the COSMB and each thematic.

The report outlined the following suggested alternative arrangements for consideration:

• COSMB - Governing Board.
  • Current structure: COSMB 20 Members, including a Chair and Vice-Chair, the Chair and Vice-Chair of each thematic committees (10), plus an additional 8 members.
  • Proposed Structure: Corporate Overview and Scrutiny Management Board Chair and Vice Chair plus Chairs and Vice Chairs of each thematic and sufficient additional members as to retain representative proportionality. This enables the committee to continue reflecting the council.
• Thematic Committees
  • Adults, Wellbeing & Health O&S Chair and Vice-Chair plus 9 members and 2 co-opted
    • Northeast and North Cumbria Integrated Care System – 3 Members
    • Tees, Esk and Wear Valleys NHS Foundation Trust – 3 Member
    • NHS Foundation Trusts Quality Accounts - 3 Members
    • 2 x Co-Opted member who can oversee all portfolios
  • Children & Young Peoples O&S
    • Chair and Vice-Chair plus 8 members, 2 co-opted and 5 x Voting Faith & Parent Governors
    • Children and Young Peoples Service – 4 Members
    • Integrated Care Board – 4 Members
    • 2 x Co-Opted member who can oversee all portfolios
    • 5 x Voting Faith & Parent Governors
  • Economy & Enterprise O&S Chair and Vice-Chair plus 14 members and 2 co-opted
    • Visitor Economy – 4 Members
    • Attractions and Accommodation – 4 Members
    • New Attractions, Festivals and Events – 3 Members
    • Partnerships and Support – 3 Members
    • 2 x Co-Opted member who can oversee all portfolios
  • Environment & Sustainable Communities O&S Chair and Vice-Chair plus 12 members and 2 co-opted
    • Community Protection – 3 Member
    • Environment – 3 Member
    • Highways – 3 Member
    • Transport and Contracted Services – 3 Member
    • 2 x Co-Opted member who can oversee all portfolios
  • Safer and Stronger Communities O&S Chair and Vice-Chair plus 12 members and 2 co-opted
    • County Durham and Darlington Fire and Rescue Service – 3 Member
    • Domestic Abuse and Sexual Violence and Probation Service – 3 Member
    • Policing, Counterterrorism and Road Safety – 3 Member
    • Safe Durham Partnership – 3 Member
    • 2 x Co-Opted member who can oversee all portfolios

The report also outlined a transitional arrangements and review plan, with the purpose of this review to evaluate and restructure the Corporate Overview and Scrutiny Management Board (COSMB) to improve operational efficiency, reduce duplication of reporting, and ensure compliance with statutory requirements. The review aims to streamline committee structures, enhance transparency, and maintain political proportionality.

It was proposed that a Pilot and Monitor of one thematic committee be commenced following a workshop with officers and necessary scrutiny committee, and that the Adults, Wellbeing & Health O&S committee be the pilot thematic committee.

The board also discussed the implementation of SMART objectives, and the use of a performance indicators framework.

Report on the Council's use of powers under the Regulation of Investigatory Powers Act 2000 – Quarter 1 – 2025/2026

The board considered the report of Helen Bradley, Director of Legal and Democratic Services, which provided information about the Council's use of powers under the Regulation of Investigatory Powers Act 2000 ('RIPA') during the period of 1 April 2025 to 31 June 2025 (quarter 1) to ensure that it is being used in accordance with the Council's policy.

During quarter 1 there were three directed surveillance applications presented to the Court, relating to the sale of illicit tobacco products. There were no CHIS applications during quarter 1.

The report recommended that Members:

• Receive the quarterly report on the Council's use of RIPA for the period covering quarter 1 2025/2026.
• Resolve that the powers are being used consistently with the Council's policy and that the policy remains fit for purpose.

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

The board considered the report of Paul Darby, Corporate Director of Resources, regarding the 2024/25 Final Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management.

The report provided Cabinet with:

• the final revenue outturn position for the General Fund for 2024/25 (year ending 31 March 2025);
• the final outturn for the Dedicated Schools grants and School Budgets for 2024/25 (year ending 31 March 2025);
• the final capital outturn position for Capital for 2024/25 (year ending 31 March 2025);
• the final outturn for the Council Tax and Business Rates collection fund for 2024/25 (year ending 31 March 2025);
• the use of and contributions to earmarked, cash limit and general reserves in 2024/25 together with the closing position regarding balances held at 31 March 2025; and
• an overview of achievement of the Medium Term Financial Plan (MTFP) (14) savings plan targets in 2024/25;

The report highlighted that at 31 March 2025 the 2024/25 Revenue Budget was overspent by £3.083 million against a total revenue budget agreed in February 2024 of £568.591 million (a 0.54% overspend), and that the Council's challenging financial position is mainly caused by overspends in the Children and Young People's service grouping of £13.074 million, primarily associated with financial pressures in Children and Young People's budgets with rising pressures in Children in Care (CiC) placements costs and associated expenditure exceeding budget by £10.986 million.

The report recommended that Cabinet note:

• the 2024/25 final revenue outturn net overspend position of £3.083 million (prior to transfer to Service grouping cash limit reserves), which represents 0.54% of the 2024/25 revised net expenditure budget of £568.591 million. This is made up of an overall net council overspend in 2024/25 of £10.573 million, offset by the 2024/25 service grouping net underspend transfers of £7.490 million to reserves;
• that the closing Cash Limit reserves relating to service groupings are to be realigned to Corporate Earmarked reserves in 2025/26 as part of a Quarter One reserves review;
• the closing General Reserve balance of £21.488 million which is below the council's general reserves policy of retaining a balance between 5% and 7.5% of the 2025/26 net budget requirement (which equates to between £31.156 to £46.734 million), resulting in a transfer requirement from the MTFP Support Reserve of £9.668 million to replenish to the minimum 5% level;
• the closing balance on earmarked reserves (excluding service grouping cash limit and schools' reserves) at 31 March 2025 of £168.679 million, an in-year reduction of £7.628 million;
• the Dedicated Schools Grant Cumulative Deficit Balance of £22.981 million, and the closing Schools outturn position and school reserve position;
• the performance against the various prudential indicators agreed by Council in February 2024;
• the outturn position for the Collection Funds in respect of Council Tax and Business Rates; and
• the amount of savings delivered against the 2024/25 targets.

The report also recommended that Cabinet approve the revised capital budget £623.445 million for the period 2025/26 to 2028/29, which is subject to a detailed review by Cabinet following the Council Elections in May 2025 – the outcome of which will be presented in the 2025/26 quarter one forecast of outturn report.

Chief Executive's Office – Revenue and Capital Outturn 2024/25

The board considered the report of Paul Darby, Corporate Director of Resources, regarding the Chief Executive's Office – Revenue and Capital Outturn 2024/25.

The report provided details of the final revenue and capital outturn budget position for the Chief Executive's Office (CEO) service grouping, highlighting major variances in comparison with the budget.

In 2024/25 the service achieved a cash limit underspend of £1.115 million against a revised budget of £18.499 million. The CEO cash limit balance at 31 March 2025 was £1.549 million, and other earmarked reserves under the direct control of CEO total £1.266 million at 31 March 2025.

The final CEO capital budget was £1.201 million for 2024/25, with total expenditure to 31 March 2025 of £0.959 million (79.8%). A request will be made to the Member Officer Working Group (MOWG) to carry forward the full £0.242 million underspend to the current year to augment the 2025/26 Capital programme.

The report recommended that Corporate Overview and Scrutiny Management Board note the final outturn position against the 2024/25 revenue and capital budgets.

Quarter Four, 2024/25 Performance Management Report

The board considered the Quarter Four, 2024/25 Performance Management Report of John Hewitt, Chief Executive, which informed members, senior managers, employees and the public of progress towards achieving the strategic ambitions and objectives set out in the Council Plan 2024-28.

The report contained the most recent performance data available on 31 March 2025, alongside contextual information of activity and events taking place in the fourth quarter of the 2024/25 financial year (January to March).

The report highlighted that the council continue to show strong performance across key outcomes:

• For Our Economy;
  • We are showing strong economic performance across the county. Key areas such as jobs, investment, demand for employment land and industrial premises, and employment are all favourable compared to previous years.
  • We continue to support businesses and are exceeding targets for securing investment for companies.
  • Above target attendances have been recorded at our cultural venues and leisure centres. The occupancy rate at our cinemas and theatres are better than last year.
• For Our Environment;
  • Key measures around waste collection and disposal show that we are diverting a smaller proportion of waste to landfill.
  • The contamination of our household recycling continues to come down though the rate of improvement has slowed.
  • We are building, with regional partners, a new 'energy recovery from waste' facility which will meet the future needs of the county.
• For Our People;
  • Statutory referral demand for children's social care has increased significantly compared to last year. However, improved practice across statutory children's social care has led to a consistently low rereferral rate and despite higher demand performance remains strong.
  • Children in our care remains relatively high but has stabilised following a period of sustained increase throughout 2024 and our Sufficiency and Commissioning Strategy is delivering against its objectives.
  • Improved processes and increased capacity which have improved timeliness performance Education Health and Care Plans.
  • The number of referrals into adult social care and Care Act assessments completed has remained stable over the period. The percentage of service users receiving an annual review has also continued to increase and has achieved our compliance target for the last two quarters.
  • Our plan to maintain the number of admissions to permanent care has resulted in a reduced rate of admissions compared to the previous year.
  • The proportion of households assessed as homeless across the county remains higher than both the regional and England averages. And latest benchmarking data shows we performed worse than the regional average for all measures except homelessness duty.
• For Our Communities;
  • Of the private sector rented properties covered under the selective licensing scheme, 61% are fully licensed licences in progress, exempt or have legal proceedings instigated.
  • The condition of our main roads (A, B and C roads) perform well compared to the national and regional averages. Unclassified roads have shown significant improvement following additional capital investment. Our response times to rectify highway defects are better than target and public satisfaction in our highways is above average.
  • Reports of fly-tipping remain low, environmental cleanliness is high, and more long-term properties are being brought back into use.
  • Bus patronage continues to improve. And bus punctuality has increased.
• For Our Council;
  • Through the work of our Poverty Action Steering Group, we continue to provide significant financial support to our most vulnerable residents - one of a few authorities offering this type and extent of support.
  • The processing times of housing benefit and council tax reduction requests (both new claims and changes in circumstances) have improved further. This is despite increased demand.
  • During the 12 months ending March 2025, we answered more than 480,000 telephone calls - 92% within three minutes. Satisfaction with overall service delivery remains high and we are receiving fewer complaints.
  • During the reporting period, 58% of our employees recorded no sickness. However, more days have been lost to sickness, and our sickness rate is now 0.35 days per full time equivalent employee higher than the same period last year.

The report recommended that Corporate Overview and Scrutiny Management Board note the overall position and direction of travel in relation to quarter four performance (January to March), and the actions being taken to address areas of challenge.

Update in relation to Petitions

The board considered the report of Helen Bradley, Director of Legal and Democratic Services, which provided for information the quarterly update in relation to the current situation regarding various petitions received by the Authority.

The Democratic Services Manager advised that the schedule provided a list of those petitions that were active, and those that were to be closed and which would be removed from the list prior to the next update.

Since the last update 1 new e-petition had been submitted, however as it did not meet the required number of signatures, it was not valid. In addition, no new paper petitions had been received.

Here's a meeting briefing that summarises the key points from the Corporate Overview and Scrutiny Management Board meeting of Durham County Council on 4 September 2025:

The Corporate Overview and Scrutiny Management Board met on 4 September 2025, to discuss a range of topics including a review of the Local Council Tax Reduction Scheme, the council's financial outturn, performance management reporting, and scrutiny development. The board also received updates on petitions and key decisions.

Here's a summary of the key discussion points:

• Local Council Tax Reduction Scheme (LCTRS) Review The board reviewed proposals for changes to the Local Council Tax Reduction Scheme 2026/27 for working-age residents, aimed at simplifying the process and achieving administrative efficiencies and potential budget savings. The proposals included introducing an income banded scheme and capping the maximum support level. A public consultation was conducted from July to September 2025 to gather feedback on the proposed changes. The board provided feedback on the options and noted that the cabinet and full council would consider capping entitlement for working-age claimants after the consultation.

• Financial Outturn 2024/25 The board examined the 2024/25 Final Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management. The 2024/25 Revenue Budget was overspent by £3.083 million. The board noted the increase in the Dedicated Schools Grant Cumulative Deficit Balance to £22.981 million. The board also noted the proposed changes to the LCTR scheme. The final capital outturn position for 2024/25 showed capital expenditure totalling £233.734 million.

• Scrutiny Development and Continuous Improvement The board discussed ways to improve operational efficiency, reduce duplication of reporting, and ensure compliance with statutory requirements, as detailed in the COSMB Restructure report. A more agile approach to committee meetings was suggested, with a smaller governing board and thematic committees. A pilot programme within the Adults, Wellbeing & Health Overview and Scrutiny Committee was proposed to test the new methodology. The board was asked to consider adopting a SMART-aligned performance objectives framework.

• Update in Relation to Petitions The board received a quarterly update on the status of petitions received by the council, as detailed in the Petitions report. Since the last update, two new e-petitions and two new paper petitions had been submitted, and responses had been provided.

• Report on the Council's use of powers under the Regulation of Investigatory Powers Act 2000 (RIPA) The board were informed about the council's use of powers under the Regulation of Investigatory Powers Act 2000 during the period of 1 April 2025 to 31 June 2025, as detailed in the Q1 2025 RIPA Report FINAL. During quarter 1 there were three directed surveillance applications presented to the Court, relating to the sale of illicit tobacco products. There were no Covert Human Intelligence Source (CHIS) applications during quarter 1.

• Notice of Key Decisions The board considered the Notice of Key Decisions, noting items for Cabinet to take key decisions at its meeting scheduled to be held on 17 September 2025, and those key decisions that are currently scheduled to be considered by the Executive up to December 2025, as detailed in the Notice of Key Decisions - Sept to Dec 2025.

Local Council Tax Reduction Scheme 2026/27

The board considered the report of Paul Darby, Corporate Director of Resources, and Councillor Nicola Lyons, Cabinet Portfolio Holder for Stronger Communities and Belonging, regarding the Local Council Tax Reduction Scheme 2026/27.

The report set out proposals for change, following a review of the Local Council Tax Reduction Scheme for working age residents, which will provide either, process simplification, administrative efficiencies, budget savings or a combination of all three in 2026/27, and to outline consultation and communication plans and timelines aligned to the proposals.

The report outlined proposals for the introduction of an income banded scheme and options for the delivery of a cost neutral model, and explored further cost saving opportunities, both to the current scheme, in addition to the introduction of an income banded scheme, where maximum support is capped and the opportunities, benefits, risks and implications of any such changes.

The report outlined the following proposed options for change:

• Option 1 - Banded scheme, simplified model 100% maximum support
• Option 2 - Banded scheme, simplified model with a cap on the maximum support level
  • Option 2 (a) - Banded scheme (Maximum support capped at 90%**)
  • Option 2 (b) - Banded scheme (Maximum support capped at 80%**)
  • Option 2 (c) - Banded scheme (Maximum support capped at 75%**)
• Option 3 - Scheme changes
  • Second Adult Rebate
  • Non-Dependant deductions
  • Capital Changes

The report recommended that the Corporate overview and scrutiny board:

• note the content of the report and the information contained within, including how the changing welfare benefits system has highlighted increased limitations to the council's current CTR scheme.
• provide feedback on the options outlined within the report and
• note that Cabinet and full Council, post-consultation, will need to consider whether as part of move to an income banded scheme, the council seeks to cap entitlement for working age claimants. The decision making report of which will return to Corporate Overview and Scrutiny Board in December 2025.

Scrutiny Development and continuous improvement

The board considered the scrutiny development and continuous improvement report and presentation of Councillor J Cook, Chair, and Councillor B Quirey, Vice Chair, which outlined issues that Corporate Overview and Scrutiny Management Board members have identified together with the solution to these issues in data reporting from the council, and to strengthen the scrutiny function for the COSMB and each thematic.

The report outlined the following suggested alternative arrangements for consideration:

• COSMB - Governing Board.
  • Current structure: COSMB 20 Members, including a Chair and Vice-Chair, the Chair and Vice-Chair of each thematic committees (10), plus an additional 8 members.
  • Proposed Structure: Corporate Overview and Scrutiny Management Board Chair and Vice Chair plus Chairs and Vice Chairs of each thematic and sufficient additional members as to retain representative proportionality. This enables the committee to continue reflecting the council.
• Thematic Committees
  • Adults, Wellbeing & Health O&S Chair and Vice-Chair plus 9 members and 2 co-opted *