Households in Darlington will see their council tax bills increase by five per cent, as the local authority responds to significant financial pressures.
The price rise was approved at a Darlington council meeting on Thursday, where the Conservative-led authority’s budget for the next year was passed.
Councillors heard how high levels of inflation and an increased demand in services are affecting revenue budgets, with the local authority needing to make huge savings in the next four years.
Around £78 million will be spent on adult and children’s social care, which will be partly funded through the tax rise. The authority also relies on government funding, local business rates and other income including grants, fees and charges to make up the remainder of its budget.
Council leader Jonathan Dulston defended the rise, saying Darlington has the second lowest council tax in the North East.
He told the meeting: “The financial pressures on the council have been considerable over the last few years. The current economic climate presents new and significant financial challenges, with unprecedented levels of pressures.
“The easiest decision in the world would be to freeze council tax, but that would be wrong and negligent. We are living in unprecedented times where global inflation is causing big challenges; where a cup of coffee is increasing, a pint of milk on the rise. The council is feeling the pinch.”
Such is the financial difficulty the council is facing; it has predicted spending £31 million of its reserves over the next four years to balance its budget. But opposition councillor, and leader of the Labour group, Cllr Steven Harker worries the council will have no cash reserve left.
“We’re spending more money than we have,” he said.
“There’s not a hint of an idea, or plan, in this report.
“You don’t have a Plan A let alone a Plan B. We’re going forward into the dark, spending as if there’s no tomorrow.”
Meanwhile, Cllr Cyndi Hughes labelled the budget “all fur coat, no knickers” and said the projected spending “doesn’t stand up”.
And cllr Nick Wallis said the voices of Darlington residents had not been heard after reading out social media posts from several residents worried about the rise.
“[The council] may think they have avoided public ire over the council tax increase – but the people will have their say on May 4,” he said.
The budget report also allocates up to £111 million to be spent on capital investment projects throughout the town, including a replacement roof for Whinfield School, Skerne Bridge improvement works, and play area equipment replacements.
