Agenda item

The Committee received a report of the Corporate Director of Resources which provided information on the General Fund and Collection Fund outturn position for 2023/24 (for copy see file of minutes).

Councillor A Watson asked why there were legal and professional fees for Milburngate within the accounts.

P Darby responded that the fees had been included in the accounts as the Council had sought external legal advice to support the issues around the Milburngate development. 

Councillor T Smith questioned whether the Milburngate costs would impact on the Council’s resources and occur financial losses to the taxpayer.

P Darby confirmed that Milburngate would not impact on the Council’s resources as costs had been included in the existing budget for contingencies to provide access to advice and technical support. 

Mr I Rudd referred to paragraphs 67 to 70 within the report that related to the resilience index and the Council using reserves to the balance the books. 

P Darby noted that this was a slight misrepresentation as the reduction in the earmarked reserves were sums that were set aside for specific purposes and not to balance the books.  The MTFP reserves used to balance the accounts had strict controls. He noted that the section 25 report at full Council before the budget was considered set out his professional opinion on the adequacy of reserves.  The aim of the s25 report was to ensure members were assured on the robustness of the estimates and reserves. He added that the underspend from corporate budgets last year had offset the overspend in children and young people services. The corporate underspend had been a managed position through delaying necessary borrowing whilst interest rates remain high.

As part of the outturn the Council had reviewed its reserves and sought to increase corporate capacity. He clarified that this had been done because the MTFP forecasts for 2025/26 and beyond showed a challenging outlook for the council.  The Council was in a position where it could not raise sufficient Council tax revenues to meet its unavoidable spending pressures and the Government was not meeting the gap through additional grant, meaning that there would be a gap of £20million next year and £23 million the year after that would need to be addressed. He added that there was also the possibility that there would be no more money from government. The Council had lobbied the government as more funding was urgently needed. 

Councillor A Watson asked if the Council still had a reduced Council tax scheme available.

P Darby responded that Members had agreed to a Council tax reduction scheme which supported low incomed families and people who were of a pensionable age. This was means tested and provided up to 100% support for financial vulnerable households so they had no bill to pay. He added that there were also statutory discounts and exemptions in place such as a 25% discount for single occupants and an exemption for students.

Mr F Barnish mentioned that taxing empty properties was a way to potentially create more revenue for the Council as he was concerned that there were too many empty homes in Durham.  He requested a presentation on this.

P Darby confirmed that the council tax policy gave no exemptions for empty properties.  These were charged 100% Council tax rates which included owner occupiers and landlords.  He added that if properties were empty for more than twelve months, they were charged double council tax as an incentive to occupy properties.  From April next year the council was introducing a premium on properties classed as second homes.

Members asked that a presentation be given to a future meeting on Council Tax and the Empty Homes Strategy. 

Councillor T Smith mentioned that there were empty properties on the east coast of Durham which had attracted negative public attention.  The media had run stories of refugees being housed in these areas which had caused issues in the community.

P Darby acknowledged that the scrutiny committee had investigated these issues.

Resolved:

i)               That the contents of 2023/24 Final Outturn for the General Fund and Collection Fund report be noted.

ii)             That a presentation on Council Tax and the Empty Homes Strategy be provided at a future meeting.