A five per cent council tax rise for residents in County Durham has taken a step closer, after leaders approved the proposal.

Durham County Council cabinet members agreed the latest budget plans yesterday (Wednesday, February 8) that will also mean a hike in parking charges and fees for services, as the authority bids to make huge savings.

Spending has been significantly slashed recently but the council faces a shortfall of £52million over the next four years, reduced to £41million if the council tax proposal is passed.

The proposed tax increase would see band A-C households pay between an extra £1.12 and £1.50 per week, however around 54,000 households on low incomes will be protected from any increase. 

Households throughout County Durham can expect to pay up to a further £90 a year, but council leader Amanda Hopgood defended the decision.  

She told the cabinet meeting: “Increasing the council tax is a decision that should not be taken lightly, and we must recognise the squeeze on the cost of living at this time. However, not increasing council tax is simply not a sustainable approval strategy to adopt.”

The Northern Echo: Leader of the council Amanda Hopgood Leader of the council Amanda Hopgood (Image: Sarah Caldecott)

Despite the tax increase, and a further £12.4million of savings and reductions, the council will need to use £10.2million of its cash reserves to balance the books.

The price of school bus tickets is set to increase across the county in a bid to make savings, rising from £1.63 per day to £2.80.

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Cllr Hopgood added: “There remains significant uncertainty over the funding we will receive beyond 2025/26 and this together with unavoidable inflationary and demographic pressures in our budgets remains a significant risk.”

Councillors heard the budget also includes multi-million investment for a range of key schemes which invest in public buildings and facilities to revitalise town centres, transport improvements, and maintenance of the county's highways and pavements.

This includes the new Belmont Community Arts College and Belmont CE Primary School; an additional £10 million investment in the refurbishment of Greenfield School, Newton Aycliffe; a £14.8 million investment in highways and a £15 million investment to repair a landslip on the A690.