Annual Budget

The Council Budget

The annual Revenue and Capital Budget sets out the Council’s spending plans for the financial year and shows how these are to be funded, including the contribution required from the council tax payers of the Parish, via the Council Precept.

The Town Council Precept is basically the amount that the Council has estimated that it will require to be raised from Council Tax to fund the many services that it provides to the local community, and is the amount on which the Town Council proportion of the Council Tax bill is calculated.

The Council must set a Budget every year and the Budget is set in advance of the following year. The Council’s financial year runs from 1st April to 31st March.

The Budget is an estimate of the resources that the Council will require to meet the running costs of all of the services that it provides, to deliver on its strategic aims and targets, and to meet the needs and priorities of the local community.

The Council needs to set a Revenue Budget and a Capital Budget each year.

The Revenue Budget funds the day to day running costs of all of the Council’s services such as salaries and wages, gas and electricity, fuel and general supplies and services. The net cost after deducting any income receivable to each service from fees and charges and grants is met from the Town Council proportion of the Council Tax, which is payable by all households in the Parish.

The Capital Programme Budget funds major one-off investment in Council and community assets such as buildings, vehicles, parks and play areas and is usually funded from the Council’s Balances and Reserves and any external funding that may be available.

The Council has invested more than £2 million in community assets in recent years including substantial investment in play areas and multi use games areas, a skate park, BMX track and scoot track, improvements to community buildings and various environmental initiatives.

2025/26 Budget (This Year’s Budget)

Clearly the budget that we set is important to our local community, both in terms of how our spending plans may impact on the provision of services and investment in assets for the benefit of the town, and in terms of the level of Council Tax that we need to raise from local taxpayers in order to fund these plans.

The Council has set a 2025/26 Revenue and Capital Budget that will enable all current services, facilities, and events to be provided to the usual standards this year, continued capital investment in community assets, and the replenishment of Council reserves.

Despite planning to limit the Town Council Tax increase to around the current rate of inflation (2%), unfortunately, in order to offset inflationary budget pressures on staff pay and running costs, additional budget pressures created by the Government decision to increase Employer’s National Insurance Contributions and Durham County Council’s decision to cut the Council Tax Support Grant, the Council was left with no choice but to implement a further increase.

This resulted in a total increase in the Town Council Tax of 4.95%, which increased the Band A Town Council Tax by £9 this year, taking the yearly bill to £200 per year or £17 per month. This equates to 11p in every £1 of the total Council Tax bill.

The Council appreciates that any increase in the monthly outgoings of our local taxpayers will not be popular.

However, we hope taxpayers will agree that a monthly increase of 79p is a small price to pay to ensure that all the services provided by the Town Council can be protected for another year, and that reserves can continue to be replenished.

Looking further ahead, the Council continues to face significant financial challenges, including further cuts to the Council Tax Support Grant funding, pressure on staffing costs linked to increases in the National Living Wage and pay awards linked to the cost-of-living crisis, and continued inflationary pressure on running costs. The Council is also due to make significant capital investment next year and over the medium to longer term and this will result in a significant depletion in the Council’s balances and reserves.

However, the Council has strong foundations in place due to its healthy financial position and will seek to manage the future challenges faced via the forthcoming update of its Medium-Term Financial Plan with a view to keeping any future increases in Council Tax to a minimum.

Should you wish to have a more in depth look at the Council’s 2025/26 Revenue and Capital Budget, a copy of the 2025/26 Budget Document and a link to the report to the Council’s Policy and Resources Committee in relation to the setting of the 2025/26 Revenue and Capital Budget is set out below:-

Approval of the Final 2025/26 Revenue and Capital Budget Report

2025/26 Final Revenue and Capital Budget

2025/26 Budget Document – Finance Manager Report

The detailed background behind the development of Council’s 2024/25 Revenue and Capital Budget was reported to the Council’s various committees in October and November and links to the various reports are set out below:-

Overall Draft Revenue and Capital Budget 2025-26

Appendix 1 – Summary of the Overall 2025-26 Draft Revenue and Capital Budget

Appendix 3 – Draft 2025-26 Capital Programme Budgets

Appendix 4 – Projection of Council Balances and Reserves

Draft 2025-26 Policy and Resources Committee Budgets Report

Appendix 1 and 2 – Draft Policy and Resources Committee Budgets 2025-26

Draft Recreation Committee Budgets Report 2025-26

Appendix 1 and 2 – Draft Recreation Committee Budgets 2025-26

Draft Environment Budgets Report 2025-26

Appendix 1 and 2 – Draft Environment Committee Budgets 2025-26

2025-26 Budget Framework and Timetable Report