The Cabinet of Durham County Council met on Wednesday 18 March 2026 to discuss a range of key issues, including the County Durham Plan's interim policy on Houses in Multiple Occupation (HMOs), the expansion of the Pride in Place Programme, and the Quarter Three 2025/26 Performance Management Report. Decisions were made on the interim HMO policy, the acceptance of Pride in Place Phase 2 funding, and the approval of the Quarter Three performance report.

County Durham Plan – Houses in Multiple Occupation Interim Policy

The Cabinet agreed to consult on an interim planning policy for Houses in Multiple Occupation (HMOs) outside of the existing Durham City Article 4 areas. This policy aims to control the spread of HMOs to ensure they form part of mixed and balanced communities, protect neighbouring amenity, and provide a high standard of amenity for occupants. The consultation period will run from 25 March 2026 to 5 May 2026. An HMO is defined as a building or flat where three or more people live, forming two or more households, and sharing basic amenities. Under current planning rules, dwelling houses can change to a small HMO (three to six residents) without planning permission, known as 'permitted development'. Where local authorities wish to control this, they can remove these rights through an Article 4 Direction, which will come into effect across the remainder of the county on 17 August 2026. The interim policy will be used as a material consideration in assessing planning applications for HMOs outside the Durham City Article 4 areas.

Pride in Place Programme

The Cabinet endorsed the acceptance of £5 billion government initiative funding for the Pride in Place Programme (PiPP) Phase 2, agreeing to the Council's role as the accountable body for these funds. This programme aims to support long-term, community-focused regeneration by empowering local neighbourhoods. Four neighbourhoods in County Durham have been selected to participate: Spennymoor (Phase 1), and Crook North/Tow Law, East Peterlee, and South Stanley (Phase 2). Each selected neighbourhood can receive up to £20 million over a 10-year period, with a capital/revenue funding split varying between phases. The programme focuses on empowering local people to shape their neighbourhood's future and support transformative local projects. The Cabinet also endorsed the creation of Neighbourhood Boards to steer the development of local visions and subsequent PiPPs in Crook North/Tow Law, East Peterlee, and South Stanley, and agreed to a further phase of targeted co-design.

Quarter Three 2025/26 Performance Management Report

The Cabinet noted the overall performance position and direction of travel for Quarter Three (October to December 2025) and the actions being taken to address areas of challenge. The report highlighted several key performance messages across the council's five strategic ambitions.

Under the ambition of Reforming the Council, it was noted that while sick days per Full Time Equivalent (FTE) increased to 12.26 days, detailed analysis is ongoing to understand causes. Employee apprenticeship enrollment is high, with around three-quarters of new apprentices being retained. Recruitment activity has increased, with a fall in the re-advertisement rate suggesting improved candidate attraction. However, the proportion of Freedom of Information and Subject Access Requests responded to on time remain below target due to increased complexity and volume.

In relation to Supercharging Our Economy, the council supported 1,343 businesses, secured 19 inward investments totalling £5.7 million, and created or safeguarded 2,157 jobs over the past 12 months. Business floorspace occupancy is above target. However, planning applications completed within deadlines remain below target, mainly due to pressures in supporting service areas. Cultural events like Lumiere and the Durham Book Festival generated significant economic impact. Educational outcomes show that 65% of children had a good level of development, below national and regional benchmarks, and 6 in 10 children met expected standards in reading, writing, and maths at Key Stage 2, also slightly below benchmarks. Positively, 94.8% of young people aged 16-17 were in education, employment, or training, higher than regional and national averages.

Under Building Better Communities, reports of fly-tipping remain low, environmental cleanliness is high, long-term empty properties are being brought back into use, and reports of anti-social behaviour are at their lowest recorded level for two years. The target for repairing highway defects within timescales was met. Gigabit-capable broadband is accessible to almost 88% of properties, surpassing the government target. The 'Let's Talk County Durham' platform has seen over 2,500 registrations and 18,000 interactions.

Regarding Caring For Our People, the council is undertaking more homeless assessments, leading to increased costs due to a rise in households with 'priority need' requiring emergency housing. Efforts are being made to reduce time in temporary accommodation by increasing the availability of council-owned accommodation. Permanent admissions to residential or nursing care for adults aged 65+ have reduced over the last year, although still higher than the national rate. Processing times for housing benefit and council tax reduction requests remain better than target. Children's social care performance remains positive, with timeliness of assessments better than national and regional benchmarks. Family Hub registrations are trending upwards, with popular sessions and intensive support pathways. Timeliness of Education and Health Care Plan (EHCP) requests has improved significantly, though requests continue to increase year on year. High demand persists in statutory children's social care, with increasing numbers of children on child protection plans and entering care, often with complex needs. Investment is being made to improve foster care placements and explore alternative models. The council is also piloting a new 'Weekenders Programme' for foster carers. The number of children electively home educated has risen to 1.9% of the school population, higher than the England and North East average.

For A Practical Environmental Stewardship, 97.3% of municipal waste was diverted from landfill, exceeding the target. Only one monitoring site within the Durham City Air Quality Management Area remains above the government threshold. Four significant sections of the Stockton & Darlington Railway have been removed from the Heritage at Risk Register through conservation work, with a fifth section to be removed upon the installation of the new Gaunless Bridge.

Other Decisions

The Cabinet also considered reports on the County Durham Plan – Houses in Multiple Occupation Interim Policy, School Admission Arrangements Academic Year 2027/28, Proposed Toft Hill and High Etherley Bypass, Home to School Transport: Progress Update and Proposals, and the Discount Market Sale Supplementary Planning Document. Decisions were made to approve the recommendations in the reports for the interim HMO policy, school admission arrangements, home to school transport, and the discount market sale supplementary planning document. The decision on the Toft Hill and High Etherley Bypass was approved.

Additionally, the Cabinet noted the Forrest Park (Newton Aycliffe) Limited Annual Report and the Chapter Homes Annual Report 2024/2025.

The meeting also included resolutions relating to the exclusion of the public for the discussion of exempt or confidential information concerning the Development of North East Assembly Integration and Test Facility on NETPark Phase 3, the Newgate Centre Options Appraisal, and the Durham Bus Station Cladding and Surface Concourse. Decisions were approved for the development of the commercial unit on NETPark Phase 3A.

Finally, the Cabinet noted the 2026/27 Quarter Three Forecast Outturn for the Revenue Budget, Capital Budgets, Collection Fund and Treasury Management, which indicated a forecast underspend of £14.213 million on the General Fund Revenue Budget for 2025/26. The report also detailed the forecast closing General Reserve balance of £45.369 million, the forecast Dedicated Schools Grant Cumulative Deficit Balance of £41.880 million, and amendments to the capital programme. The Cabinet also noted the performance against Treasury Management Prudential Indicators and the forecast outturn for the Collection Funds. An update on the delivery of budget savings for 2025/26 was also noted, with £17.362 million of the £18.036 million savings delivered or on track for delivery.

The Cabinet also considered the Local Nature Recovery Strategy, endorsing its publication. This statutory requirement, introduced by the Environment Act 2021, sets local priorities and maps proposals for nature's recovery across County Durham. The strategy has been developed collaboratively with partners and stakeholders, following extensive consultation.

Finally, the Cabinet considered proposed changes to the Updated Allotment Policy, Tenancy Agreement and Transition Rule – Post Consultation. These changes, informed by a public consultation, aim to provide clearer, fairer, and more flexible rules regarding cultivation requirements, animal-keeping, and the handling of long-standing caravans. Key amendments include reducing the minimum cultivation requirement to 50%, capping fruit trees at 25% of a plot, allowing historic pigeon structures to remain with conditions, clarifying rules on cockerels, and reducing the qualifying period for co-worker succession to three years, with discretion for the Service Manager in cases of bereavement.

The Cabinet also approved the proposed High Street Rental Auctions designated areas in Bishop Auckland and Stanley, noting that resourcing for these pilots will be capped at government new burdens funding and capacity from existing staff.

Lastly, the Cabinet approved the Corporate Peer Challenge Action Plan, developed in response to recommendations from the LGA peer team. The plan details activity to address the report's findings, with significant progress already made on 92% of the actions. A future report will provide an update on further progress and preparations for the LGA peer team's re-engagement.