I attended the Cabinet meeting today to challenge the Council on its finances.

Total reserves have increased by £48.5m more than was predicted last April.  and by £24m more than was forecast back when this years budget was determined in March.

This has now reached the point of lunacy. I am really surprised that the Government hasn’t intervened.

What is very clear is that not only was there no need for the council tax rise this year, but other requests for additional investment from Lib Dem county councillors into Schools and Highways budgets could have been met, and money could still have been added to reserves.

Labour councillors once again cited the government cuts, but none could really justify hiking reserves. Indeed my request for a full review of all earmarked reserves did not appear to be taken up, so we will be looking at taking this matter further. The council for example now has over £15m in an insurance reserve – double that of many larger councils.

Labour are creating ways to hide money – 58 reserves and cash limits, some of which haven’t seen a penny spent for years or continue to see increases.

If the situation continues at its current rate the council will soon have half a billion pounds in reserves whilst our footpaths and roads fall apart and schools see wind blowing through their windows.

I noted during the meeting that council plans also include council tax increases every year for the next few years. So take money out of the economy by fleecing County Durham residents, then put the money in the bank, do nothing with it and earn next to no interest.

This really is a shocking state of affairs.