LGA Corporate Peer Challenge: Durham County Council

A team of local government peers, led by the Local Government Association (LGA) delivered a Corporate Peer Challenge (CPC) at Durham County Council from 7 – 10 October 2025. This was the council’s first CPC since July 2012. 

CPC is a well-established and respected improvement and assurance tool that provides robust, strategic and credible challenge and support to councils. Further details about the CPC process can be found in Appendix A.

Our peer team consisted of highly experienced and knowledgeable senior local government councillor and officer peers (see section four). We considered the five core areas covered by all CPCs: local priorities and outcomes, organisational and place leadership, governance and culture, financial planning and management and capacity for improvement; in addition to a focus on how the council can accelerate its transformation journey with ICT, digital tools, Artificial Intelligence (AI) and other emerging technologies. 

This report provides Durham County Council with feedback on the peer team’s findings. It provides the council with a set of a high-level recommendations alongside further recommendations under each of the CPC’s core areas. There is an expectation the council will publish this report and a clear action plan to respond to all the recommendations highlighted.

Durham County Council is a financially stable organisation with a strong, unified culture and a motivated workforce that delivers high-performing services and outcomes relative to the rest of the sector. This is demonstrated through its Medium-Term Financial Plan (MTFP), positive staff survey results, and external inspections reflecting strong performance in key areas despite increasing demand.

The local elections in May 2025 resulted in a significant change to the council’s political makeup, bringing in a new majority administration with fresh perspectives on local government leadership. The new political leadership has settled well into its role, establishing clear portfolios and a refreshed set of corporate priorities, with good public engagement. 

The council benefits from strong and experienced officer leadership. The Corporate Leadership Team (CLT), led by a highly regarded and experienced chief executive, plays an effective and strategic role in shaping the wider area for the benefit of residents and businesses.

There is a risk that progress could slow due to a more challenging financial environment and the number of councillors new to local government leadership. The new administration brings a different approach to governance, with an ambition to redefine established ways of working and reshape relationships across the council and the county. It is developing a new policy agenda that reflects its local priorities and vision for County Durham. However, as this work begins from a standing start, it will take time to clearly define and communicate these priorities to officers, partners, and the wider community, which could delay how quickly the council adapts to future challenges. This transition will therefore need careful management to ensure the administration’s priorities and ambitions are aligned with the council’s financial and organisational capacity. This includes embedding the revised council plan within the Medium-Term Financial Plan (MTFP) and maintaining clear communication both internally and externally.

The council has started its transformation programme to support this transition, but more work is needed to ensure it is properly designed to close the MTFP funding gap. This will require strong and accountable leadership, clear objectives, effective communication, detailed planning, sufficient resources, and robust governance. 

There are encouraging signs of trust between Members and officers, particularly with cabinet Members. To strengthen this further, roles and responsibilities must be clearly understood, accepted and embedded. It will also be important to engage the wider councillor membership, external partners, and the community through strong communication to maintain the council’s effectiveness. 

The council has a strong record of partnership working, as evidenced by its leadership within the County Durham Partnership and the North East Combined Authority (NECA). These partnerships have supported key initiatives such as the inclusive economic strategy and the poverty strategy and associated action plans. There is now an opportunity to further develop the council’s place-leadership role through NECA and a refresh of the County Durham Vision 2035 to incorporate the administration’s new priorities.

The council has a positive relationship with its residents, and the ‘Let’s Talk County Durham’ platform shows its commitment to community engagement and involving people in decision-making. However, further work is needed to address community concerns around social cohesion so that everyone feels safe, included and able to contribute to the county’s future. This requires visible leadership in promoting social cohesion across all communities, in line with the council’s legal responsibilities. It also means making a clear distinction between national political debates or online commentary and official council policy.

The council has made a positive start in adopting new technologies, but its approach remains fragmented. A more systematic, council-wide approach is needed, supported by a clear digital vision and strategy, strong senior-level leadership and an integrated roadmap that aligns technology investment with corporate priorities and the wider transformation programme, to help address the MTFP gap and drive sustainable change.

Looking ahead, the council’s key challenges are to embed its new priorities, strengthen relationships and partnerships, accelerate transformation to address financial pressures, deliver sustainable outcomes for all residents, and clearly communicate its achievements and impact to the community.

The following are the peer team’s key recommendations which have been prioritised on the grounds of urgency and importance. 

3.1 Recommendation 1 - Embed changes to the council plan into the MTFP and develop clear internal and external communications

The council should integrate its refreshed council plan - informed by the new administration’s ambitions and consultation - directly into the MTFP to ensure financial alignment. This includes developing a communications strategy that clearly articulates priorities to staff, partners, and residents.

3.2 Recommendation 2 – Continue to build a successful relationship between officers, cabinet and the broader Councillor membership and ensure adherence to roles and responsibilities

Building on the updated Member handbook and induction programme, the council should introduce regular joint workshops for Members and officers to reinforce clarity of roles and strengthen understanding of the distinction between the responsibilities of the Cabinet and the Corporate Leadership Team (CLT), as well as between policy and operational matters. This could include scenario-based training on decision-making to prevent overlaps and foster trust, especially given the election of new councillors post-May 2025.

3.3 Recommendation 3 - Establish a comprehensive transformation programme to address the MTFP gap and drive sustainable change

To effectively meet the MTFP savings target, the council should establish a comprehensive and well-governed transformation programme, to build on the positive organisational culture in place. This programme should integrate financial, technological, and organisational change to deliver long-term efficiency and service improvement. The programme should ensure the following:

3.3.1 Alignment with the MTFP to meet the savings gap

This means aligning the transformation programme with the MTFP’s savings gap, ensuring all initiatives contribute directly to financial sustainability. Prioritise high-impact, cross-council projects (for example, Oracle Fusion implementation) with clear milestones, benefits tracking, and resource allocation. Focus should be on demand management, service redesign, and the strategic use of digital and data technologies to optimise outcomes and reduce costs.

3.3.2 Strong and accountable leadership for the transformation programme, with effective communication, drivers, planning, sufficient resources and robust governance 

The programme should be led by a dedicated senior transformation lead, reporting directly to CLT, responsible for driving delivery and ensuring accountability. A transformation governance board should be established to oversee progress, manage risks, and ensure transparent decision-making. Real-time performance dashboard should be developed to track progress against key milestones and communicate updates to stakeholders. Use internal platforms such as Microsoft Viva Engage to share updates, celebrate milestones, and maintain staff engagement and buy-in.

3.4 Recommendation 4 – Develop a refreshed council-wide digital strategy

The council’s digital strategy should be refreshed to align with its transformation priorities and future technology roadmap. A structured approach to artificial intelligence (AI) and wider technology investment should be established, incorporating risk assessment, user testing, and ethical considerations before implementation. Before committing to further investment in AI or digital technologies, the council should ensure there is strong, informed corporate leadership to drive implementation across the organisation, supported by a skilled and knowledgeable team capable of taking its digital ambitions to the next level.

3.5 Recommendation 5 - Further develop the council’s place leadership as part of the North East Combined Authority and County Durham Vision 2035 refresh

The council should enhance its role at both Member and officer levels in regional partnerships by actively contributing to the North East Combined Authority’s commitments and demonstrating the alignment of its corporate priorities and those of County Durham Vision 2030 with the priorities of the NECA to benefit from regional funding streams and collaboration.

3.6 Recommendation 6 - Recognise and demonstrate the council’s leadership role in promoting social cohesion across the entire community

The political leadership should prioritise communication and initiatives that build community cohesion and address anxieties about community safety across Durham as part of the council’s legal responsibilities and the Safe Durham Partnership Strategy for 2024-29. 

Peer challenges are conducted by experienced LGA peers, including elected councillors and senior officers. The composition of the peer team was shaped by the specific focus of the challenge, with the LGA selecting peers based on their relevant expertise. The peers for this CPC were:

• Terence Herbert (Chief Executive at Surrey County Council)
• Councillor Ged Mirfin (Reform UK Cabinet Member for Resources, HR and Property at Lancashire County Council)
• Councillor Adam Paynter (Independent Member and Deputy Leader at Cornwall Council)
• Mariana Pexton (Deputy Chief Executive at Leeds City Council)
• Chris Henning (Executive Director for Place at Derbyshire County Council)
• Steve Hughes (Assistant Director of Strategy & Transformation at Oldham Council)
• Heloise MacAndrew (Director of Law and Governance at Lancashire County Council)
• Lucy Shayle (Graduate Resources Officer at Knowsley Council)
• Satvinder Rana (Senior Regional Adviser LGA).

This section of the report provides detailed feedback along with additional recommendations related to the five core areas of focus and how the council can accelerate its transformation journey with ICT, digital tools, Artificial Intelligence (AI) and other emerging technologies. 

When developing the action plan (in response to the CPC’s findings), the council should consider both the key recommendations presented in section three and the additional recommendations set out below. 

The council has clear priorities that reflect the local context. It has an established approach to countywide, and council strategic planning based on data, evidence, and engagement. The County Durham Vision 2035 provides a shared vision for the county, developed with partners and communities, to guide its long-term direction. The council plan supports this strategic vision by setting out the council’s specific role in achieving it.

The council plan is closely aligned with the MTFP and supported by a range of strategies, service plans, and the council’s staff performance and development review processes. This creates a clear ‘golden thread’ linking the county vision, council priorities, service plans, and individual staff contributions.

The newly elected political administration has (through extensive public consultation) defined a new set of priorities for the council which will form the foundation of the council plan 2025-2030. At the time of the peer challenge the updated council plan had been considered and agreed by cabinet and was scheduled to be considered by full council on 22 October 2025. These priorities should be fully embedded within the council’s strategic and service planning frameworks, as well as within the MTFP and the performance management framework. They should also be clearly communicated to staff, partners, and residents.

This could build on the success of the ‘Let’s Talk County Durham’ platform, which has increased public engagement and consultation responses. The council could also deliver targeted campaigns to demonstrate how priorities - such as building better communities and supercharging the economy - translate into tangible local outcomes. A clear sense of purpose will provide staff and partners with confidence in the council’s vision, help maintain focus during periods of change, and ensure accountability for progress and results.

The council has a strong track record of delivering on its previous priorities and providing a wide range of high-performing statutory and discretionary services, many of which have been externally validated. For example, the Care Quality Commission (CQC) rated adult social care as ‘Good’ overall in August 2024, and Ofsted rated children’s services as ‘Outstanding’ overall in May 2025. This followed the SEND inspection in June 2024, which identified inconsistent experiences and outcomes for children and young people with special educational needs and/or disabilities (SEND) - an issue the council has since been working to improve.

A robust performance management framework is in place, using key performance measures linked to corporate priorities to monitor both overall progress and the performance of individual services. The council has also invited external challenge, as demonstrated by the LGA Communications Health Check (September 2023), the Chartered Institute of Public Finance and Accountancy (CIPFA) finance review (October 2023), the LGA Highways Strategic Peer Challenge (February 2025), and this Corporate Peer Challenge (October 2025). Regular benchmarking against other councils further demonstrates the council’s commitment to continuous improvement, supported by a range of quality marks and awards that reflect the standard of services provided.

In addition to the key recommendations in section three of this report, the peer team also recommend the council progress the following actions:

• Align and embed the new priorities across the council’s plans and operations, and define what success looks like so that progress can be measured and managed effectively.
• Ensure that the 2026/27 Budget and MTFP reflect the new priorities of the administration.
• Take the opportunity to strengthen and standardise external communications about the council’s priorities, performance, and impact. 

The council has continued to move forward with purpose and stability despite significant political change, including a new administration, a new cabinet and many newly elected Members.

The peer team found clear evidence of strong organisational leadership, with cabinet Members and senior officers working effectively together as a cohesive team to provide strategic direction. Members, staff and partners described the chief executive and senior officer team as “excellent”. Staff praised the chief executive, in particular, for his communication and reassurance during the transition in political control, which helped to maintain stability across the organisation.

Cabinet Members have embraced their leadership roles with commitment and are providing strong political direction - “they have come a long way in a short period of time.” Going forward, they will need to maintain a careful balance between their two equally important roles as community and strategic leaders. As community leaders, they must represent and advocate for the interests of their wards, ensuring all local voices are heard and community needs are met. As strategic leaders, they share collective responsibility for the council’s overall direction, taking a county-wide view and making decisions in the long-term interests of all residents. Achieving this balance requires discipline, self-awareness, and a clear understanding of how local and strategic responsibilities intersect. Consistent and confident political leadership at both levels is vital for the council’s credibility, community cohesion and effective use of resources.

The peer team also heard about community concerns relating to social cohesion and feelings of vulnerability among some groups. Members have a key role in addressing these concerns through strong place leadership and by supporting the council in meeting its legal responsibilities under the Equality Act 2010. The Act requires public bodies, including local councils, to have due regard to the need to eliminate discrimination, harassment, and victimisation; advance equality of opportunity; and foster good relations between people. These duties are not only legal requirements but also fundamental to building safe, inclusive, confident, and resilient communities.

The council demonstrates effective place leadership through strong partnerships. The County Durham Partnership (CDP) brings together public, private, and voluntary sector organisations to deliver the County Durham Vision 2035. Partners met by the peer team expressed clear commitment to working with the council to deliver shared priorities. The County Durham Together Partnership further strengthens this approach by bringing together public and voluntary organisations with local communities to promote place-based working at a neighbourhood level, with scope to go further on this as expressed by some partners.

The ‘Let’s Talk County Durham’ platform highlights the council’s commitment to involving residents in decision-making. Its recent consultation on the council’s new priorities attracted over 3,000 responses, showing increasing levels of public engagement.

The peer team was also impressed with Our Durham Story, which was developed with hundreds of stakeholders to showcase Durham on both a national and international stage. It presents a strong and compelling narrative that helps to build civic pride, strengthen community identity, and enhance the reputation of the county and its partners.

The council plays an active role within the North East Combined Authority (NECA) and has an opportunity to strengthen its regional influence further by encouraging greater engagement across the organisation. This should involve both Members and officers to ensure the county benefits fully from devolution opportunities.

The council currently operates 14 Area Action Partnerships (AAPs) to support community engagement, consultation, and the delivery of local projects. Following an external review, these are set to be replaced by 12 Local Networks aimed at strengthening community capacity and enabling residents to play a more active role in improving their local areas. The peer team heard that this transition should now move to the implementation stage. The council may also wish to consider a community governance review focused on Town and Parish Councils, particularly as some parish boundaries are not aligned. One possible option could be to establish parish governance across the whole county to help address issues such as double taxation and to explore devolving local assets and responsibilities to Town and Parish councils.

In addition to the key recommendations in section three of this report, the peer team also recommend the council progress the following actions: 

• Strengthen partnership working where improvements are needed, particularly in relation to the engagement of directorates and across the Member and officer cohorts. This should include setting clear expectations of partners and adopting a more proactive approach to relationship management.
• Encourage organisation-wide engagement with NECA to maximise devolution opportunities for the county, involving both Members and officers.
• Continue the transition to Local Networks to enhance locality working and clarify the implications for partnership arrangements, service delivery, and community capacity.
• Define and agree the future role of Town and Parish councils in place leadership.
• Support frontline Members to focus on leadership within their communities, enabling them to provide consistent local representation for all residents and act as strong ambassadors for both the council and the county. 

The council has clear and robust governance arrangements, supported by a well-established and effective governance framework. The most recent external audit annual report gave a positive assessment of value for money, identifying no significant weaknesses, though it noted ongoing challenges such as the delivery of savings. The “golden triangle” of the chief executive, section 151 officer, and monitoring officer continues to operate effectively.

A proactive and pragmatic approach is taken to deliver council outcomes within current financial constraints, with positive examples of collaborative working with partner organisations. A comprehensive risk register is in place, and cabinet agendas include effective consideration of risks. Risks, outcomes, and performance are measured and monitored through the council’s performance management framework.

There are constructive relationships between Members and officers, based on mutual trust and respect. Clear protocols, defined roles and responsibilities – where there is a clear understanding of the difference in roles of cabinet Members and CLT - and an established code of conduct all help to maintain these relationships and support effective governance. The council should undertake a review of its standards complaints procedure to identify underlying causes and implement measures to reduce the volume of cases, thereby strengthening governance and promoting early and proportionate resolution. 

The council has a positive organisational culture characterised by respect, openness, and constructive challenge. Staff behaviours are guided by the council’s values and behaviour framework, and many described it as a “nice organisation with a nice culture.” Employees appear motivated and supported by management. There are also six staff-led support networks providing opportunities for colleagues across the council to connect and support one another.

The 2022 Working Well staff survey gathered employee views on workplace wellbeing and identified areas for improvement, which the council has since been addressing. However, some frontline staff have recently experienced confusion between social media commentary and official council policy. The council should address this by communicating clearly the difference between national political debate or online commentary and the council’s own policy positions.

Member development is comprehensive, with good levels of attendance at training sessions. A Member induction handbook provides clarity on structures and roles. The council’s Constitution is reviewed and updated regularly, and the recommendations from the recent governance review have been implemented.

There is a healthy culture of challenge and scrutiny, with officers respecting and supporting Members’ democratic role in questioning and influencing decisions within the legal framework. Overview and Scrutiny works to an annual work programme that provides balanced coverage of key areas. The development of the new council plan offers an opportunity to further strengthen the impact of scrutiny. Aligning the scrutiny work programme with the priorities and objectives of the new council plan will help ensure that scrutiny remains focused on strategic issues and outcomes that matter most to residents. The peer team also recommends incorporating elements of the County Durham Vision 2035 into the forward plan to ensure that major strategic initiatives receive appropriate Member oversight and that scrutiny continues to drive ambition, accountability, and improvement across the county. There is also scope to review the overall scale of scrutiny so that resources are concentrated on areas where they can add the greatest value to council priorities.

In addition to the key recommendations in section three of this report, the peer team also recommend the council progress the following actions:

• Reduce the risk of external media narratives undermining trust and confidence across the council by clearly distinguishing between online content and official council policy.
• Review the standards complaints procedure and maintain high standards of conduct to reduce standards complaints.
• Follow through on organisational commitments, such as the centralisation of corporate services, to reduce duplication and create a strong one organisation ethos.
• Ensure the organisational culture evolves to meet future needs emerging from the transformation programme, including greater integration, collaboration, agility, and digital capability.
• Secure support from the Centre for Governance and Scrutiny to review the scrutiny function, including its structure, scale, and the distinction between audit and scrutiny roles, and establish a protocol for collaboration.
• Consider the conciseness of decision-making reports, ensuring that options and legal advice are clearly integrated. 

Durham County Council is a financially well-managed and stable organisation. Its levels of debt and reserves are consistent with accepted sector practice, and it consistently produces timely accounts. This is reflected in the council’s external audit results, which have provided unqualified opinions and positive value-for-money judgements.

The revenue budget for 2025/26 is set at £623.121 million, requiring a council tax increase of 4.99 per cent, savings of £18.036 million and the use of reserves of £3.503 million. These savings have been successfully delivered. However, between 2026/27 and 2028/29, further unidentified savings of £45.848 million were forecast when the 2025/26 budget was set, including around £20 million in 2026/27 alone and assuming council tax increase of 2.99 per cent per annum. The updated four-year financial forecasts covering the period indicates that the total budget gap now forecast is circa £71 million across the MTFP, assuming no increases in council tax, and in lieu of any new savings proposals the cabinet develop for 2026/27 and beyond. This presents a very significant budget challenge, particularly if no council tax increases are applied. In addition, the council faces a growing deficit in its High Needs SEND Dedicated Schools Grant (DSG), forecast to reach around £38 million by March 2026.

The revised Capital programme for 2025/26 to 2028/29 totals £623 million and requires £101 million of self-financing borrowing and £301 million of prudential borrowing. Of this total, £363 million is forecast to be required in 2025/26 and 2026/27. This represents a notable increase in the council’s overall borrowing commitments and associated revenue implications.

The council has also made commercial investments through the £20 million finance Durham fund to support local business growth. To date, this includes £16.46 million invested across 36 companies, helping to create 600 jobs and safeguard over 1,000 existing roles. While this level of investment is within sector norms, it does expose the council to commercial risk, which could potentially be reduced by reviewing its risk appetite and exploring opportunities to share risk with strategic partners. 

The peer team found that there is a strong understanding of the council’s financial position and widespread awareness of financial pressures across the organisation, supported by a well-established MTFP process. Although the MTFP clearly outlines current demand, complexity, and pressures, future financial challenges are expected to intensify due to a limited tax base, increasing demand, and diminishing reserves. These factors require ongoing consideration and planning, along with a clear articulation of priorities. 

A financial strategy and savings plan are being developed to address these challenges, with early work already underway to identify savings through established, directorate-led approaches. In addition, a transformation programme is being developed to support the delivery of unidentified savings. It will be important for the transformation programme to set out clearly the savings to be achieved, the services and programmes affected, how new technologies will be used to deliver efficiencies, and the organisational and cultural changes that will be needed.

Financial management within the council is robust, with strong internal controls overseen by the audit committee and external auditors. The financial position is jointly owned by Members and officers, and key risks - such as demand and income - are actively managed within plans. Financial, capital, and asset strategies are aligned with corporate priorities. The new administration has also undertaken a detailed line-by-line review of the council’s financial commitments, including capital spend.

In addition to the key recommendations in section three of this report, the peer team also recommend the council progress the following actions:

• Review the established approach to savings delivery in line with the emerging transformation strategy, providing strong leadership to develop a broad range of savings options across all departments and services to address the significant MTFP gap in preparation for the local government finance settlement.
• Ensure that future savings plans reflect the emerging transformation strategy, including the potential use of digital technology and AI applications.
• Reassess the commercial return on capital investments, considering whether a different risk appetite may be appropriate.

The council is a professionally led organisation with a wide range of skilled and motivated officers, supported by newly elected Members who bring fresh perspectives, commitment and add value. It is confident in its ability to deliver its priorities, with resources effectively aligned through the established ‘golden thread’ linking strategy, service planning, and individual objectives. Employees understand their roles and how they contribute to organisational goals, supported by strong internal communication channels such as Viva Engage and ‘buzz’ (the council’s employee magazine). Organisational health indicators, such as staff engagement, staff retention, sickness levels, culture etc are positive, with strategies in place to sustain staff satisfaction and manage turnover.

There is clear commitment and capacity across the council to drive improvement, underpinned by a strong focus on learning, development, and sector-led improvement activity. The Care Academy supports both council staff and partner organisations, while the council’s apprenticeship programme has received national recognition for its quality and impact. The council has demonstrated its ability to deliver change, as shown by positive outcomes from inspections and reviews including CQC and Ofsted, the Chartered Institute of Public Finance and Accountancy (CIPFA) finance review in 2023, and the recent governance review. While these assessments rated the council highly, they also identified areas for further improvement, which the council is actively addressing.

There is clear commitment and appetite for future transformation to improve productivity and achieve financial savings, with funding set aside to support this work. Challenges related to the successful implementation of Oracle Fusion are being addressed through targeted investment, strong governance, and clear leadership. MTFP approach has been effective, and workforce challenges are being managed proactively through the council’s workforce strategy.

Use of ICT, digital tools, Artificial Intelligence (AI) and other emerging technologies

The council is at an early stage in its digital transformation journey and would benefit from adopting a more strategic and corporate approach to implementation. There is enthusiasm and willingness among staff to grasp new technologies with positive examples of innovation, such as the early use of AI tools like Magic Notes in adult social care and the use of Copilot in meetings; however, these developments remain isolated rather than organisation-wide, and current investment levels are limited.

At present, there is a fragmented approach to the management and use of technology across the council, with individual departments and services deploying their own systems. This fosters siloed working and runs counter to the one organisation ethos, while also posing a significant cyber security risk. Although a cyber risk approach is already in place, the peer team recommends that this be refreshed to reflect sector-wide risks and current good practice.

A more systematic, council-wide approach is required, supported by centralised functions to oversee cloud migration, application rationalisation, and the development of digital skills at all levels of the organisation. This should be underpinned by a clear digital and technology vision and an integrated roadmap that aligns technology investment with corporate priorities and the wider transformation programme. The roadmap should also address challenges related to siloed working and legacy systems to ensure a unified, organisation-wide approach to technology deployment.

Before making further investments in artificial intelligence or other technologies, the council should ensure strong, informed corporate leadership is in place and that its digital strategy is updated to reflect current priorities. Benchmarking against best-performing councils should be carried out to identify opportunities for innovation and best practice in digital delivery. A digital skills academy could also be established to upskill staff, foster a culture of innovation, and ensure the workforce is prepared for emerging technologies such as AI.

There are also opportunities to learn from other councils that are maximising the use of emerging technologies and AI through benchmarking and strategic partnerships. For example, councils are using artificial intelligence to support road maintenance, AI chatbots to help residents with parking and penalty charge queries, AI-enabled CCTV cameras to combat fly-tipping, etc. 

In addition to the key recommendations in section three of this report, the peer team also recommend the council progress the following actions:

• Provide clear leadership direction on which digital priorities should be progressed to ensure continued focus and delivery.
• Ensure the Oracle programme is effectively governed and adequately resourced to realise the intended transformation benefits.
• Rationalise social media channels, websites, and branding to deliver unified and stronger messages under the council’s trusted brand.
• Maintain momentum in improving internal communication and engagement through Microsoft Viva Engage.

The senior political and managerial leadership of the council should review and reflect on the findings and recommendations from this CPC.

To promote the principle of transparency, it is a requirement of the CPC process that the final report of the peer team is published in-full within three months of the review being completed. In this instance, this requires the report to be published no later than January 2026. 

There is a requirement for Durham County Council to develop and publish an action plan within five-months of the peer team being onsite, no later than March 2026. This action plan should provide clarity on the activity, milestones, and timelines that the council will work to in responding to the team’s findings. 

The action plan will also be central to the peer team’s re-engagement with Durham County Council through a progress review which is due to be completed by September 2026. 

The Ministry for Housing, Communities and Local Government (MHCLG) have published the Best Value Standards for Local Authorities. These standards expect every council to engage in a Corporate or Finance Peer Challenge at least every five-years. It is expected that Durham County Council would commission their next Corporate Peer Challenge no later than October 2030. 

In the meantime, Mark Edgell, Principal Adviser for the North East, Yorkshire & the Humber and East Midlands, is the main contact between your council and the Local Government Association. As outlined above, Mark is available to discuss any further support you require and can be contacted on email: [email protected] or Tel: 07747 636 910.

CPC is a valued improvement and assurance tool that is delivered by the sector for the sector. It involves a team of senior local government councillors and officer peers undertaking a comprehensive review of key information and spending three days at the council to provide robust, strategic, and credible challenge and support.

CPC forms a key part of the improvement and assurance framework for local government. It is underpinned by the principles of Sector-led Improvement (SLI) put in place by councils and the LGA to support continuous improvement and assurance across the sector. These principles state that councils are responsible for their own performance; accountable locally, not nationally; share a collective responsibility for the performance of the sector; and rely on the LGA to provide the tools to support them. CPC is also key to councils in meeting their Best Value duty. UK Government expect all councils to have a CPC at least every five years. 

Scope and focus

The peer team considered the following five areas which form the core components of all CPCs. These are critical to councils’ performance and improvement.

1. Local priorities and outcomes - are the council’s priorities clear and informed by the local context? Is the council delivering effectively on its priorities? Is there an organisational-wide approach to continuous improvement, with frequent monitoring, reporting on and updating of performance and improvement plans?
2. Organisational and place leadership - does the council provide effective local leadership? Are there good relationships with partner organisations and local communities?
3. Governance and culture - Are there clear and robust governance arrangements? Is there a culture of challenge and scrutiny?
4. Financial planning and management - Does the council have a grip on its current financial position? Does the council have a strategy and a plan to address its financial challenges? What is the relative financial resilience of the council?
5. Capacity for improvement - Is the organisation able to bring about the improvements it needs, including delivering on locally identified priorities? Does the council have the capacity to improve?

As part of the five core areas outlined above, every CPC has a strong focus on financial sustainability, performance, governance, and assurance.

In addition, the council asked the peer challenge team to comment on and make recommendations on how it can accelerate its transformation journey through the use of ICT, digital tools, Artificial Intelligence (AI) and other emerging technologies. 

The peer challenge process

Peer challenges are improvement focused; it is important to stress that this was not an inspection. The process is not designed to provide an in-depth or technical assessment of plans and proposals. The peer team used their experience and knowledge of local government to reflect on the information presented to them by people they met, things they saw and material that they read. 

The peer team prepared by reviewing a range of documents and information to ensure they were familiar with the council and the challenges it is facing. This included a position statement prepared by the council in advance of the peer team’s time on site. This provided information on the local context at the council and what the peer team should focus on. It also included a comprehensive LGA Finance briefing (prepared using public reports from the council’s website) and a LGA performance report outlining benchmarking data for the council across a range of metrics. The latter was produced using the LGA’s local area benchmarking tool called LG Inform. 

The peer team spent four days onsite at the Durham County Council during which they gathered evidence, information, and views from over 50 meetings, in addition to further research and reading and spoke to over 150 council staff together with councillors and external stakeholders.