Public Sector Property

20.02.19

‘Significant financial pressures’ forces Durham County Council into reserves as it approves £16m of cuts

Durham County Council has committed to cutbacks of £16m but pledged an additional £74m to capital investment as the authority drops into its reserves.

Following a £14.2m reduction in Durham’s revenue support grant from government, the council said it faces “significant financial pressures” and needs to make £15.8m worth of cutbacks in 2019-20 and save £39.5m over the next four years.

The news comes as the authority released its Medium-Term Financial Plan (MTFP) today.

Durham County Council leader Simon Henig said: “We continue to work hard to protect frontline services but as the financial pressures on the council increase this is becoming more and more difficult.

“Not only are we having to deal with cuts to our funding but we are now facing uncertainty caused by proposed changes to the way local government is funded.”

The council has approved a 2.99% increase in council tax as well as a 2% increase to the adult social care precept, raising a combined £10.5m.

It has agreed to take £5.5m from its reserves. The council’s total savings made between 2010-11 and 2022-23 now stand at £263m.

But also included in the MTFP is a commitment of an additional £84m from the council, which brings its total investment from 2018-2022 to £391m.

The council said the cash ringfenced for capital projects in Durham has been agreed by its members, and the capital programme will be mainly financed from government grants, capital receipts and prudent borrowing.

Henig said: “Continuing austerity means that we are going to have to manage significant financial pressures for the foreseeable future. However, it is vital that we continue to invest in capital infrastructure if we are to grow our local economy.

“Additional investment will not only improve infrastructure but will help us retain existing jobs and create new ones as well as ensuring that key council services are maintained.”

Projects include £2.4m to be spent on the county’s towns and villages, an additional £17.5m investment in the highways network, and a further £6.6m for the creation of a Durham history centre.

Comments

There are no comments. Why not be the first?

Add your comment

 

related

public sector executive tv

more videos >

latest public sector news

Peterborough City Council to tackle homelessness with its own housing company

20/09/2019Peterborough City Council to tackle homelessness with its own housing company

Peterborough City Council to ask for cabinet approval to set up their own Housing Revenue Account (HRA), enabling the council to provide&nbs... more >
Home Office encourages civil servants to volunteer with police

20/09/2019Home Office encourages civil servants to volunteer with police

Civil servants who take up the option of volunteering as special constables will get up to 12 days paid special leave a year, in order to sp... more >
Network rail proposal for UNESCO World Heritage Site

20/09/2019Network rail proposal for UNESCO World Heritage Site

Network Rail has submitted a planning application to City of Edinburgh Council proposing to install a bridge walk and visitor centre at the histori... more >

comment

Peter Kyle MP: It’s time to say thank you this Public Service Day

21/06/2019Peter Kyle MP: It’s time to say thank you this Public Service Day

Taking time to say thank you is one of the hidden pillars of a society. Being on the receiving end of some “thanks” can make communit... more >
How community-led initiatives can help save the housing shortage

19/06/2019How community-led initiatives can help save the housing shortage

Tom Chance, director at the National Community Land Trust Network, argues that community-led initiatives are a productive way of helping to solve... more >
Aberdeen's green transport fleet attracting international attention

19/06/2019Aberdeen's green transport fleet attracting international attention

Aberdeen City Council’s hydrogen spokesperson, councillor Philip Bell, highlights the Granite City’s determination to play a leading ... more >

editor's comment

25/10/2017Take a moment to celebrate

Devolution, restructuring and widespread service reform: from a journalist’s perspective, it’s never been a more exciting time to report on the public sector. That’s why I could not be more thrilled to be taking over the reins at PSE at this key juncture. There could not be a feature that more perfectly encapsulates this... read more >

interviews

Artificial intelligence: the devil is in the data

17/12/2018Artificial intelligence: the devil is in the data

It’s no secret that the public sector and its service providers need to invest in technology to help make better use of their resources. Bu... more >
Digital innovation in the public sector: The future is now

17/12/2018Digital innovation in the public sector: The future is now

One of the public sector’s key technology partners has recently welcomed a new member to its team. Matt Spencer, O2’s head of public ... more >
New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

05/11/2018New Dorset Councils CEO on the creation of a new unitary: ‘This is going to be the right decision for Dorset’

The new chief executive of one of the new unitary authorities in Dorset has outlined his approach to culture and work with employees, arguing tha... more >

public sector focus

View all News
Peterborough City Council to tackle homelessness with its own housing company

20/09/2019Peterborough City Council to tackle homelessness with its own housing company

Peterborough City Council to ask for cabinet approval to set up their own Housing Revenue Account (HRA), enabling the council to provide hundreds of new homes over the coming decades&nb... more >
Home Office encourages civil servants to volunteer with police

20/09/2019Home Office encourages civil servants to volunteer with police

Civil servants who take up the option of volunteering as special constables will get up to 12 days paid special leave a year, in order to spend more time supporting their local police force.... more >

the raven's daily blog

Northern Powerhouse Partner aims to connect the North once again

02/09/2019Northern Powerhouse Partner aims to connect the North once again

In February this year, official Northern Powerhouse Partner, Cognitive Publishing, delivered EvoNorth 2019.  The two day event was designed to amplify and highlight future developments the region has to offer - uniting leaders responsible for fuelling the Northern Powerhouse agenda, including Dr Nicola Headlam, Head of the Northern Powerh... more >
read more blog posts from 'the raven' >

last word

Prevention: Investing for the future

Prevention: Investing for the future

Rob Whiteman, CEO at the Chartered Institute of Public Finance (CIPFA), discusses the benefits of long-term preventative investment. Rising demand, reducing resource – this has been th... more > more last word articles >