5 council tax rise proposed for Darlington residents due to ‘financial challenges’

Town Hall officials have set out how the local authority plans to save £3.649 million in 2025/26 and an overall £21.5 million over the next four years. The council continues to face significant financial pressures, with demands increasing in vital areas such as adult social care and homelessness. 

A proposed council tax increase of 2.99 per cent, plus a social care precept of two per cent are among the main changes affecting residents. 

The council said: “Darlington currently has the second lowest council tax in the North East and as such we cannot raise sufficient income from charges to fund the spending pressures we face.  Every one per cent increase in council tax increases revenue by approximately £0.67 million.”

Darlington currently has a low tax base with 44 per cent of properties in Band A and 79 per cent in Band A – C. 

“If Darlington had the average England Band D council tax level, we would generate an additional £8.7 million per year,” the council added. “This highlights the disparity in how local government is funded.”

Among the proposed savings is £3.556 million over the next four years through redesigning some back office services, restructuring, and income generation which do not affect front-line service delivery in 2025/26. Car parking charges are also set to be increased across town centre car parks. 

The significant additional demand for services has been described as putting “unprecedented pressure” on affordability meaning the council’s reserves could be fully depleted by the end of 2026/27, bosses warned. 

A report read: “The council continues to face significant and unparalleled financial challenges stemming from reductions in public spending between 2010 and 2019 where the Council’s budget was reduced by £46 million in real terms – a 36 per cent reduction in budget.  

“This financial position was further compounded in the aftermath of Covid as demand for services rose along with an unstable economic climate, where the country saw the cost of living increasing, high inflation, income deprivation and poverty rising.”

While the government announced additional funding for core council services in the October Budget, Darlington Council said it “is not a panacea” and does not know how much it will receive or how it will impact its services. 

Despite the challenges, the council said the area is receiving significant investment to improve the town. 

Councillor Stephen Harker, Labour Leader of the council, said: “We have wrestled with the challenge of proposing a balanced budget that achieves real savings while protecting, as far as possible, the vital services that people depend on.

Recommended reading: 

Subscribe to The Northern Echo now.

“There will be things in this set of proposals that people will look at and have questions or comments about.

“That’s why we’re having a full six-week consultation period, for people to take the time to understand what is being put forward and tell us what they think. If people have genuine suggestions of how we could do things differently, I’d be pleased to hear them.”

The consultation is due to formally start after the cabinet on December 3 and run until January 19, 2025.