Yesterday in county hall a full meeting of the county council was held for the authority to agree its budget and set council tax levels for the coming year. Despite every Labour member voting against the budget the Tory-led coalition, with the full support of Reform UK members, voted through a 4.99% increase in council tax alongside a budget that continues to funnel funding into Durham City centre at the expense of our pit communities in East Durham and other towns and villages across the county.
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I spoke on behalf of Management Board members who had closely scrutinised the coalition cabinet’s budget proposals at every stage of development since they were first published last year. Members welcomed the additional £48m in central government funding this year - by far the most positive and promising local government finance settlement in over a decade following 14 long, hard years of damaging Tory government austerity that had snatched away £270m in funding for our local communities and public services.
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The coalition cabinet’s own budget papers show a funding increase of over £68m this year alone (this figure includes an additional £48m in government grant plus revenue from the coalition’s council tax increase) |
Despite that significantly improved funding settlement members had raised concerns about the ever-rising cost of extra borrowing by the coalition that will burden the people of County Durham with debt totalling over £1bn over the next 40 years.
Concerns were also expressed about the rate at which council reserves had been eroded to a level below what is considered prudent by CIPFA, which sets a guideline limit of above 5% to 7.5% to be held in reserves as a proportion of the council’s net revenue budget.
In addition members raised concerns about the risks involved in the coalition borrowing an extra £55m this year to take over a failed private sector development at Milburngate in Durham City centre. Whilst it was recognised that the project could eventually succeed members felt that the risk to the tax-payers of County Durham remained unacceptably high.
The meeting concluded when the Tory-led coalition, supported by their allies in Reform UK, agreed the budget despite the risks involved. To top it all off they also agreed to raise council tax levels by the maximum permitted 4.99% for the coming year.
In a series of passionate speeches Labour members made it clear that they could not support a budget that continues to squander public money on vanity projects in Durham City centre at the expense of villages like Blackhall and Hesleden and the rest of County Durham - and then demands that our residents stump up an extra 5% in Council Tax for the privilege.