Consultation on further proposals to balance the Council budget

These further savings are in addition to the ones in the consultation on our budget proposals for 2024/5 and Medium Term Financial Plan 2025-2028.

Update on current picture

The total savings needed at this stage for 2024/25 to balance the budget is now estimated to be £16.308 million - around £4.2 million more than was previously forecast. Across the next four years, the total savings required are estimated to be £67.602 million - around £11.6 million more than was previously forecast.

A total of £5.878 million of savings have already been approved, of which £2.332 million can be delivered in 2024/25. Our Cabinet agreed additional savings proposals of £3.7 million for 2024/25 and £6.617 million in total across the budget planning period, at its meeting in July 2024.

Cabinet have now approved further savings proposals of £1.943 million in 2024/25 and £2.909 million across the four year period for consultation.

Final decisions on these proposals will not be made until February next year.

The budget forecasts continue to assume that we will apply the maximum increases in our council tax across each of the next four years, in line with government guidance and expectations.

You can read the full report in the Cabinet agenda and minutes - 11 October 2023.

Further savings proposals - October 2023 savings plan

Wherever possible the focus on developing savings options for 2024/25 and the following three years, continues to look for efficiencies, raise additional income and protect front line services. 

Savings from back office and making efficiencies

Savings = £0.4 million for 2024/25

Savings = £0.5 million over the four year period

Proposals to make efficiencies and savings from back office areas by reviews of:

• staffing in the Partnerships and Community Engagement section
• funding for Highways section, including looking at how we use external income to part fund staff
• catering to make sure it is cost neutral (that the cost to run our catering service is not higher than the income it generates)

Raising additional income and reducing our third-party contributions

Savings = £1.3 million for 2024/25

Savings = £1.3 million over the four-year period

Proposals to raise additional income and reduce our third party contributions including:

• a review of car parking in Durham City including on and off street parking charges and Park and Ride services on Sundays
• introducing car parking charges at coastal destinations such as Seaham and Crimdon
• removing the 'free after 2.00pm' parking initiative for off street parking across countywide car parking

Savings from changes in the way we deliver front-line services

Savings = £0.2 million for 2024/25

Savings = £1.1 million over the four-year period

Proposals to save money by changing the way we deliver front line services such as reviews of:

• Area Action Partnership (AAP) area budgets: this includes a reduction in the revenue element (such as running costs) of each AAP's grants budget for local community projects, partially offset by an increase in the capital element (such as building improvements), resulting in the overall budget reducing from £110K to £100K for each AAP
• early years provision and council run nursery services: as the government has announced an increase in funding for childcare provision, it is appropriate for us to review a removal or reduction of the budgets for our four nurseries up to 2027-28, to balance this increase out. This saving proposal does not relate to maintained nursery schools or nurseries run by schools.  
• Neighbourhood Protection services (such as Neighbourhood Wardens): looking at staffing and additional areas for increased efficiency
• allotments: looking at ways to reduce maintenance costs and the possibility of increasing fees for our allotment sites
• community engagement: how our community engagement and empowerment is supported as our AAPs are restructured to Local Networks - this will take into account opportunities from the forthcoming boundary changes to County Councillor Electoral Divisions

Have your say

AAP meeting schedule

Email your local AAP to express your interest in attending the meeting.

What happens next

Your additional feedback will help us shape and finalise our budget proposals for 2024/25 as well as help us look ahead longer term to make future savings. This will be reported to our cabinet and full council in February 2024. 

We expect to consult further in 2024 on how to progress with future savings proposals.