AI and council tax rises considered to close budget gap

Four years of council tax rises, job losses and greater use of artificial intelligence are among measures being considered to tackle a growing funding shortfall at Durham County Council.

The authority has said it faces an £83.7m budget gap by 2030, driven by rising costs including social care, school transport and waste management.

Officers have identified £21.5m of savings through plans to digitise services, reduce office costs, restructure management and increase the use of technology, while warning lower tax rises would require deeper savings.

Deputy leader Darren Grimes, said: "Transformation is no silver bullet and requires a total rewiring of our services."

His comments came as cabinet members considered proposals aimed at balancing the council's finances over the next four years.

The report showed the authority faces an £83.7m funding gap before any savings measures or council tax increases are taken into account, including a £23.3m shortfall next year.

Among the proposed savings were management restructures, reducing the number of administrative buildings, securing better value contracts and changing how some services are delivered.

According to the Local Democracy Reporting Service, the largest savings package would come from the council's resources department, where £3.7m of savings are proposed.

About nine customer service posts could be removed as more residents are encouraged to access services digitally. A further nine management positions could also be lost across finance, property, human resources and procurement.

The authority is also considering longer-term reviews of libraries, leisure services and local networks as part of wider transformation plans.

Cabinet members were told that, even after the identified £21.5m of savings, a £62.1m gap would still remain if council tax was frozen.

The report said annual council tax increases of 4.99% over the four-year planning period would broadly eliminate the budget gap. Lower rises would mean additional savings would need to be found.

Council leader Andrew Husband said Durham was in a stronger position than many authorities.

"Many other councils find themselves in a much more challenging position than here in Durham, and it's not good luck," he said.

"This is a product of consistent, strong and responsible financial governance here.

"A lot of councils are quite simply battling what is equivalent to bankruptcy.

"We will work hard to come up with innovative solutions to the financial challenges we face when we can."

The proposals remain subject to further development and consultation. A public consultation is due to run from 21 September to 15 November, with final budget decisions expected in February next year.

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