Impact of Town Council cuts

Council leaders have been asked whether they considered the impact £1 million funding cuts would have on communities, writes Local Democracy Reporter, Bill Edgar. 

Durham County Council was criticised for proposing to remove the budget it gives out to town and parish councils each year for maintaining local services and hosting events. 

Peterlee Town Council said its decision to increase council tax by 9.93% was due to the withdrawal of grant funding. 

And Liberal Democrat Councillor Elizabeth Scott questioned the council’s rationale behind the decision after councils warned the most deprived parts of County Durham would be worse off. 

Cllr Scott told the Corporate Overview and Scrutiny Committee: “Do we have an impact assessment of what it actually means for residents and the county council in terms of supplying services to those areas? 

“This affects our residents; whether it’s us putting the council tax up, or it’s town and parish councils increasing it by more than the normal rate.”

Councillor Rob Moore, Mayor of Peterlee, said: “This increase has not been chosen by Peterlee Town Council.

“It has been forced upon us by a funding decision taken elsewhere. We believe it is fundamentally unfair that residents should pay more simply because a higher authority has withdrawn funding from the poorest areas of the county without proper notice or consultation. 

“Without this funding, the Town Council has no option but to replace the lost income through the precept simply to maintain existing services.

Councillors were told that any potential council tax increases are a decision of town and parish councils to manage as part of their normal budget-setting process. 

Rob Davisworth, head of corporate finance, replied: “We prepare a separate budget report, which itemises council tax levels by town and parish council. It is difficult to produce something which provides commentary on the scale of increases and how it may impact people. Some of the precepts vary from place to place. 

“A large percentage increase in a small village or hamlet parish council, in reality, is only a few pence per week. There are differences in town councils, but they are providing a wider range of services.”

But councillors around the region warned they were stuck between cutting local services or raising council tax to pay for the funding decrease. Last year, Peterlee received £190,455, representing 9.93% of its precept. 

But this year, the council’s financial outlook has been hit by the proposed funding reduction. A vacancy for a local youth worker has been scrapped, while events and grounds maintenance will be reduced. However, no staff will be cut, all core services and community facilities will be maintained, and investment in the park, sports facilities and community buildings will continue. 

The tax rise means owners of a Band A household (around 75% of homes in Peterlee) will pay £26.99 more next year – an increase of 52 pence per week.

“Our priority has been to protect services, avoid staff redundancies, and keep the increase to the absolute minimum,” Cllr Moore added.