Council bankruptcy warning in Darlington
A former council leader has urged officials to do everything they can to ensure the local authority does not go bankrupt.
Darlington Conservative leader Jonathan Dulston warned the council would “fundamentally go bankrupt in two years” if urgent action is not taken.
Earlier this year, the local authority approved plans to make multi-million pound savings due to funding pressures and rising demand for council services. Although Darlington Borough Council said it was not close to going bankrupt, leaders warned that the threat continues to hang over the local authority.
Cllr Dulston’s plea at a full council meeting came as members approved the latest Darlington Council Plan for 2024-2027. The plan sets out the Labour-Liberal Democrat administration’s long-term ambitions and priorities for action over the next three years.
However, Cllr Dulston said protecting the local authority’s financial future should be prioritised.
“While I accept this borough faces significant challenges in the years to come, I think the most imminent challenge is making sure that we don’t go bankrupt as a local authority,” the Tory councillor said.
“All the other aims will be almost impossible to achieve if we are a council that is still led by politicians and not administrators.”
The former council leader said the Labour Party often criticised his administration, and repeatedly warned the council “was going to fall off a cliff”.
Cllr Dulston added: “This council will fundamentally go bankrupt in two years. We were promised a plan from the leader over a year ago, and we still haven’t had any idea how he will stop that from happening.
“The Council Plan today should be about how we are going to survive and balance the books, all the other stuff that we need to address will come in time. The fundamental is that this council needs to prioritise surviving. It’s gotten significantly worse over the last year.
“Do we really believe the document in front of us is realistic about the challenges we face, as a council? The Conservatives won’t be supporting this plan because it doesn’t focus on the immediate pressures that this council faces.”
But Council Leader Stephen Harker hit back at the Conservatives’ management of the council between 2019-2023.
“I don’t know whether you make up stuff or you don’t understand,” said the Labour leader. “The Council Plan isn’t a financial document. We have a budget that articulates our finances, how we spend them, and what savings need to be made.
“This document is about the vision, direction, and ambitions of this local authority going forward.
“You made no attempt to make any savings in your four-year term. You didn’t seem to achieve very much. Things got worse, aided by your friends in Parliament.
“I believe we have a genuine opportunity to make a real difference to people’s lives in Darlington.”