A proposal to extend a council tax discount scheme which supports County Durham’s most vulnerable residents is being considered by councillors this week.
Durham County Council’s Local Council Tax Reduction Scheme offers a council tax discount to eligible residents on low incomes whether in work, unemployed or retired.
Just over 53,800 residents are currently benefiting from the scheme, with more than 27,500 receiving the maximum 100 per cent discount, meaning they pay no council tax.
Members of the council’s Cabinet will consider making a recommendation to Full Council that the existing scheme is retained for another year.
Cllr Richard Bell, the council’s deputy leader and Cabinet member for finance, said: “We are the only council in the region to have retained entitlement for this support at the levels they were at when councils first introduced discount schemes 10 years ago.
“Of course, providing this level of support does come at a cost in terms of lost revenues and, if this proposal is agreed, we’d expect that sum to reach around £67million next year.”
The proposal is part of a financial update report that also details the savings the council expects it will have to make to balance the budget next year and beyond.
The report says the council needs to make £21.7million in savings for 2025/26 and forecasts a budget gap of £64.1million over the next four years.
Also included in the report is a recommendation that Cabinet agree to a public consultation on areas from which further savings could be made.
“Like all councils, we are facing unavoidable financial pressures,” said Cllr Bell. “These are being driven by rising costs, such as the increase in the National Living Wage, pay increases negotiated nationally, and increasing levels of demand, particularly for children’s social care and also for home to school transport, where our budget has trebled over the last six years.
“We’ve always endeavoured to maximise savings in management and administration services to protect front line services. But that too, is becoming increasingly difficult.
“Without extra funding, front line services are inevitably going to be impacted going forward. We continue to lobby government for a fairer funding settlement that gives us some certainty over a number of years, unlike the current one-year settlements.”
If the recommendation to consult on a fresh set of savings proposals is agreed, a public consultation will follow.
If the recommendation to extend the Local Council Tax Reduction Scheme for another year is agreed, it will be considered by Full Council next week, on 25 September.
South West Durham News covering news across County Durham.
