COUNCILLORS at a proposed new unitary authority considered proposals to close seven care homes, The Northern Echo can reveal.

The proposal was on a list of “rejected savings”

in a leaked report prepared for Durham County Council’s ruling Labour group, which met behind closed doors on Monday.

The council – along with the seven district councils it is due to merge with in April – is facing a £16m gap in next year’s budget.

Its position has been made worse by plummeting savings rates, with estimates suggesting it could be £10.4m down on anticipated interest payments on investments.

Millions of pounds in efficiency savings, largely due to the re-organisation, are expected to help balance the books, but more savings need to be found.

Council leader Simon Henig said the closure of the care homes – which would have saved £1.6m – was rejected.

Three years ago, plans to close the council’s 12 care homes caused controversy and led to the ousting of then council leader Ken Manton. The plans were dropped after massive opposition.

Councillor Henig said: “This proposal came out of a budget exercise prepared by officers, which was dismissed with very little discussion at all.”

Another rejected saving included closing up to eight small libraries, saving £265,000.

Coun Henig said: “We are prepared to make efficiency savings which are internal at county hall, but we are not prepared to go down a road which will lead to cuts to services for the public. We will not cut frontline services.” He also said that although about 180 jobs identified in the original bid for unitary status were to be lost – largely as a result of cutting duplication of senior management roles – there would be no compulsory redundancies.

Coun Henig, who previously said the authority is “working back” from a five per cent council tax increase, added: “If we had not had the economic downturn I believe we would have been in a good position to improve services or to have a zero per cent council tax rise.”

The budget and council tax rate is expected to be ratified by the full council on February 27.

Independent county councillor John Shuttleworth, who represents Weardale, said he accepted that efficiency savings needed to be made, but care homes “should never have come into the equation.”