Durham County Council will be bankrupt in two years under the Coalition administration, say Labour leaders.
The claim comes as the Tory, LibDem and Independent councillors blame a £52m gap in authority finances on the cost of rising inflation, energy and fuel.
The Council will hear plans from Tory Leader Cllr Richard Bell to save millions of pounds by cutting funding to vital services that will impact on the county’s most vulnerable people.
County Durham Labour Deputy, Cllr Rob Crute, said:
“The Council is operating with a £34m budget deficit, the scale of which could have been significantly reduced had Coalition councillors not dithered over and delayed vital decisions on projects across our county.
“These councillors were more interested in political grandstanding – halting capital projects for a series of “reviews”, instead of recognising the importance of getting spades in the ground and delivering for residents and communities.
“The blame for Durham County Council’s horrendous financial plight lies squarely at their door. Don’t let them tell you it’s because of historic mismanagement or Russia’s invasion of Ukraine, it is purely down to this Coalition’s regressive policies and repeated mis-management of this local authority over the past 18 months.
“What is happening in County Durham is a reflection of what is happening in Government – this country has been driven to the brink by Tory ideology that instigated austerity, botched Brexit, mishandled the pandemic and caused chaos across financial markets with the latest Chancellor’s madcap mini-budget.”
Cllr Bell stated that rising interest rates and increasing demand in children’s social care were factors for the current budget crisis. The council also faces an overspend of around £14.6m.
The Coalition said over 70% of the savings – £37m – must be made in the 2023-4 financial year, with the crisis expected to deepen as Government funding is expected to reduce.
Labour Leader, Cllr Carl Marshall, said:
“On the Council’s current trajectory, it will be bankrupt in two years. That is the stark reality County Durham faces.
“For generations, Labour has been a proud and prudent custodian of the county’s finances, and I can’t put into words how furious and frustrating it is to watch this chaotic Coalition undo all that hard work and budgeting in the space of just 18 months.
“Their “review” of the county’s capital projects has caused delays that have seen some project costs increase by as much as 35%, and now it looks like the £80m programme of upgrades and refurbishments to our ailing leisure centres may be the first major casualty of this Coalition’s money saving measures.
“Time and time again, this regressive collective of councillors holding the reins in County Durham has proved it is not up to the job. I urge it to step aside and let Labour clean up its mess and get County Durham back on track…before it’s too late.”