Around 1,650 more properties have joined County Durham's council tax register compared with this time last year, and the authority expects this growth to continue into 2027/28. The expansion is anticipated to deliver Durham County Council approximately £2.5m in additional revenue next year.
The council's cabinet will be asked to approve the new council tax base when it meets on Wednesday, November 18, with deputy council leader Darren Grimes due to provide an update on the proposals. Any overall changes to council tax rates will be decided separately once the budget has been agreed.
Financial pressures and shortfall
Durham County Council faces an £83.7m shortfall over the next four years before any savings or council tax increases are factored in, including a £23.3m gap next year alone. Job losses and maximum council tax hikes have already been floated at a previous cabinet meeting.
The council tax base is the calculation used to determine how much money the authority can reasonably expect to collect from local households. There are currently 257,981 properties on County Durham's council tax register.
Challenges in raising revenue
Raising money through council tax proves more challenging for Durham County Council compared with more prosperous parts of the country. A one per cent council tax rise in County Durham would deliver around £3.15m to the authority's finances, while the same percentage increase can generate upwards of £10m in wealthier areas elsewhere.
A key factor is that the overwhelming majority of County Durham properties fall within the lower council tax bands. More than eight in ten homes are in Bands A to C, compared with around two-thirds nationally.
Pressure on services
The council notes this comes at a time when County Durham is experiencing considerable pressure on services. The report highlights adult social care, revealing that approximately seven in ten people residing in nursing and care homes across County Durham receive some form of support through services commissioned by the council. It adds that this proportion can be considerably lower in more prosperous areas of the country.
