Darlington Council warns of big savings needed

Darlington Borough Council has issued a warning of "significant and unparalleled financial challenges" as it unveils plans to hike council tax by 5%, increase charges and implement cuts.

Officials at the Town Hall have outlined how the local authority intends to save £3.649 million in 2025/26 and a total of £21.5 million over the forthcoming four years. The council continues to grapple with substantial financial pressures, with increasing demands in crucial areas such as adult social care and homelessness. Among the primary changes affecting residents are a proposed council tax increase of 2.99%, plus a social care precept of 2%.

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."

Currently, Darlington has a low tax base with 44% 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," added the council. 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 are under significant strain due to increased demand for services, which has been described as placing "unprecedented pressure" on affordability. This could potentially deplete the council's reserves by the end of 2026/27, warn council bosses.

A report stated: "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% reduction in budget."