The Cabinet of Durham County Council met on Wednesday 21 January 2026 to discuss the Medium Term Financial Plan for 2026/27 to 2029/30, including the Provisional Local Government Finance Settlement. The meeting also included updates on Adult Social Care, a review of the Housing Allocations Policy, and the Corporate Peer Challenge Final Report and Recommendations.

Medium Term Financial Plan (16) 2026/27 - 2029/30 - Provisional Local Government Finance Settlement

A significant portion of the meeting was dedicated to the Medium Term Financial Plan (MTFP) for 2026/27 to 2029/30, with a particular focus on the Provisional Local Government Finance Settlement. The report detailed the development of the budget and MTFP, incorporating updated financial planning assumptions and forecasts following the publication of the Provisional Local Government Finance Settlement on 17 December 2025. The report also outlined the outcomes of the government's Fair Funding Review 2.0, which aims to address deprivation and resource disparities across local authorities.

The council faces significant financial challenges due to rising demand for statutory social care and other services, inflationary pressures, and changes in national funding policy. The report detailed updated budget assumptions, including pay inflation, price inflation, adult social care costs, and new expenditure relating to children's prevention initiatives. It also highlighted the impact of the Provisional Local Government Finance Settlement, which provides indicative funding allocations for the council for the next three years.

The report presented updated financial forecasts, indicating a forecast budget deficit of £9.344 million in 2026/27 and £51.792 million across the MTFP planning period (2026/27 to 2029/30), assuming a 0% increase in Council Tax. To achieve a balanced budget in 2026/27, a circa 3.10% increase in Council Tax was considered. The report also detailed the outcomes of two phases of public and stakeholder consultation on budget savings proposals.

Furthermore, the report addressed changes to the Council Tax Empty Property Premium Charge Section 13A(1)(c) Reduction Policy, aligning it with government regulations from April 2026, limiting discretionary relief to a maximum of 12 months. This change was projected to increase council tax collection and reduce administrative workload.

Adult Social Care Update

The Cabinet received an update on Adult Social Care, which included the presentation of the Adult Social Care Strategy 2025-2028, the latest self-assessment for Care Quality Commission (CQC) purposes, the Service Improvement Plan, and an update on future CQC assessments. The report noted that in August 2024, the council's adult social care provision was rated 'Good' overall by the CQC, with most areas found to be of a good standard, although some areas were identified for improvement. The Service Improvement Plan (SIP) had been strengthened to reflect these findings and build upon existing improvement work. The new strategy focuses on the needs of people who use adult social care services, ensuring equity of experience and including work on preventative activity, structured around three priority themes: prevention, involvement, and equity of experience and outcomes.

Housing Allocations Policy Review

A report was presented on the review of the Housing Allocations Policy. The current policy, in operation since 2017, was deemed in need of a comprehensive review due to significant changes in the housing sector, including a rising housing crisis and increased demand for social housing. The housing register had increased by approximately 25% between 2020 and 2025. The report outlined the findings from the first stage of public consultation, which focused on qualification and disqualification rules, housing need banding, and balanced and sustainable communities. Proposed changes included introducing a local connection requirement for joining the housing register, retaining Band 4 for those adequately housed but with lower housing need, revising disqualification rules for unacceptable behaviour and rent arrears, and introducing a three-tier system for medical needs. The report sought approval to proceed with an eight-week public consultation on the draft policy.

Corporate Peer Challenge Final Report and Recommendations

The Cabinet received the final report and recommendations from the Corporate Peer Challenge (CPC), which took place from 7 to 10 October 2025. The report found Durham County Council to be a financially stable organisation with a strong culture and motivated workforce, delivering high-performing services. Key recommendations included embedding changes to the council plan into the MTFP, developing clear internal and external communications, strengthening relationships between Members and officers, establishing a comprehensive transformation programme to address the MTFP gap, developing a refreshed council-wide digital strategy, further developing the council's place leadership within the North East Combined Authority (NECA), and recognising and demonstrating the council's leadership role in promoting social cohesion. The council was also required to publish its response to the recommendations and develop an action plan by March 2026.

Newcastle International Airport - Future Partnering Arrangements

This item was scheduled for discussion as a Key Decision but was considered in Part B of the meeting, meaning it was not open to the public and press. Therefore, no details of the discussion or any decisions made are publicly available.