Four years of maximum council tax rises, job cuts and a greater reliance on artificial intelligence are being considered by Durham County Council as Reform UK's administration attempts to plug an £83.7 million funding gap while clinging to power with a majority of just three councillors.
The scale of the financial challenge facing County Hall was laid bare at Wednesday's cabinet meeting, the first to be held at Salvus House following the closure of County Hall ahead of its planned demolition.
Councillors were told the authority faces an £83.7m shortfall over the next four years before any savings or council tax increases are taken into account, including a £23.3m gap next year alone.
But the figures were presented against a backdrop of deepening political instability within Reform UK's flagship council administration, with Labour MP Bridget Phillipson saying the Durham council leadership was in "complete meltdown".
On Tuesday, councillors Lyndsey Fox, Nicole Brown and Paul Sexton resigned from Reform and will now sit as independents, leaving the ruling group with a majority of just three seats.
The departures mean at least 16 councillors elected as Reform representatives in the landslide 2025 election victory are no longer part of the party on Durham County Council following resignations, suspensions, defections and departures from the authority.
Cllr Fox said she had become increasingly concerned about the culture within the party and claimed that a "serious safeguarding concern" she raised in July had not been properly addressed.
She said she subsequently reported those concerns to the police and to the Police and Crime Commissioner.
She added: "While I would never expect the party to interfere with a police investigation, I did expect a safeguarding process, an acknowledgement that the concern had been raised, clarity around safeguarding responsibilities and appropriate follow-up.
"Instead, the conversation moved quickly to political numbers and possible roles within the council. There was no meaningful follow-up with me about the safeguarding concern itself."
Her comments have added to wider questions about the group just as it tries to push through difficult savings and tax decisions.
Former councillors Ian Catchpole and Kenny Hope are among those who have previously raised concerns about the internal culture of the group, allegations strongly rejected by the party leadership.
Responding to the latest departures, Cllr Husband said: "These people have let their residents down.
"They have conned them using Reform colours and betrayed the many members who spent their time and money to help get them elected."
He has repeatedly rejected allegations of bullying and wrongdoing within the group, saying previously: "I would like to see one shred of evidence that I have bullied anyone within Reform."
Away from the political row, officers set out early options for how the council could begin to close the funding gap.
Plans under consideration include reducing office costs, increasing income, changing how some services are delivered and making greater use of technology and artificial intelligence.
An estimated 18 jobs could disappear, including nine customer service posts and nine management roles.
The biggest savings package, worth £3.7m, would come from the council's resources department.
That means the administration is now under pressure on two fronts - to steady its political position and to explain how it will balance the books.
Deputy council leader and finance chief Darren Grimes warned there were no easy answers to the financial pressures facing the authority.
Speaking at cabinet, he said: "We'll keep a laser-like focus on reviewing contracts where we can, stripping out any waste and avoidable costs and ensuring we don't waste money on expensive gimmicks."
He argued that many of the council's financial pressures stemmed from factors outside its control.
"The biggest cost drivers that we face as a council aren't optional extras, they're not add-ons, they're unavoidable cost pressures linked to national decisions that we must locally fund," he said.
The authority faces growing costs in areas including children's social care, adult care, home-to-school transport, waste services and staff pay.
A 3.5 per cent pay award next year alone is estimated to add £10.8m to council spending.
While transformation projects are expected to generate significant savings, Cllr Grimes cautioned they would take time to deliver.
"Transformation is no silver bullet and requires a total rewiring of our services, doing things very differently and leaning into a digital solution and artificial intelligence," he said.
The council leadership, however, argued that Durham was still in a stronger financial position than many authorities elsewhere in the country.
"Many other councils find themselves in a much more challenging position than here in Durham, and it's not good luck," he said.
"This is a product of consistent, strong and responsible financial governance here.
"A lot of councils are quite simply battling what is equivalent to bankruptcy.
"We will work hard to come up with innovative solutions to the financial challenges we face when we can.
"We refuse to accept the status quo."
However, Cllr Amanda Hopgood, leader of the Liberal Democrat opposition on Durham County Council, said many of the transformation plans now being promoted by Reform had already been under development before the party took control of the authority.
She said: "The transformation strategy had already been discussed before Reform was elected.
"We fully support the transformation plan for local government, but Reform talk a lot about virtue signalling and their obsession with trying to deliver zero council tax rises - we are seeing the consequences of that now.
"They set a budget this year knowing that they were creating a future black hole.
"They pleaded for more money from the government, now they've got it and they squandered it."
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Since May 2025, the following councillors have left Reform UK or no longer represent the party on Durham County Council:
- Andrew Kilburn (Benfieldside)
- David Cumming (Murton)
- John Bailey (Easington and Shotton)
- Kate Rowland (Shildon)
- Michael Ramage (Shildon)
- Jasmine Fox (Lower Teesdale)
- Nick Brown (West Auckland)
- Andrew Harrison (Seaham)
- Kenny Hope (Delves Lane)
- Jack McGlenen (Dawdon)
- Ian Catchpole (Sedgefield)
- Dawn Saunders (Peterlee)
- Paul Bean (Crook, now with Advance UK)
- Lyndsey Fox (Bishop Auckland)
- Nicole Brown (Aycliffe South)
- Paul Sexton (Chester-le-Street South)
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