North Yorkshire County Council could dip into its reserves to balance its books in the next financial year.
Ahead of a budget meeting next week, senior county councillors have warned that the council may have to use up to £11 million of its reserves — despite hiking council tax rate.
The authority currently has £271 million in reserves, much of which is earmarked for capital projects and other costs, such as £31 million to fund the transition to the upcoming new unitary authority North Yorkshire Council.
Cllr Carl Les, leader of the county council, said the authority still faced risks over the ongoing impact of covid and social care.
He said:
“We are facing an unprecedented range of risks – the continuing impact of covid, harsh winters and climate change, the need for interventions to prop up social care, the escalating costs of transport for special educational needs students, to name but a few.
“These pressures are such that given the need to continue to deliver key services at a time of rising demand and the need to successfully transition to a new council, our final budget will require a higher degree of support from reserves than would otherwise be the case or is desirable.”
County councillors will meet next week to decide whether to support proposals for its budget for 2022/23.
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Among the plans will be an increase in council tax. The county council has the power to hike its rate by as much as 4.5%.
Depending on the level of council tax set, the county council will have to use between £6 million and £11 million of its reserves.
The authority has also warned it will still face a black hole of at least £30 million in three years, even if it levies the maximum permitted council tax rise this year.
Cllr Gareth Dadd, deputy leader and executive member for finance, said:
Hampsthwaite doctors’ surgery conversion finally approved“These continue to be turbulent times. We are responding to increased pressures that the pandemic has placed on our communities and the county’s economy.
“At the same time, long-term challenges grow, for example the massive pressures in social care. This means we face further tough choices as we budget for the future.”
A plan to convert Hampsthwaite’s former doctors’ surgery into a house has been approved at the second attempt.
Dr Bannatyne and Partners, which was based at Winksey Cottage, High Street, in the village, closed in March last year.
The surgery was part of Church Avenue Medical Group and shut down after practitioners felt the cottage was no longer a viable place for a medical practice.
Mozaffar Nami, a developer, lodged plans to convert the building into a house.
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Harrogate Borough Council initially rejected the proposal in November on the grounds that the applicant had not demonstrated that the site had been empty for more than three months.
Now the developer has had plans approved after resubmitting proposals for the former surgery.
Mr Mari said in documents submitted to the council that the building had been previously used as a house before becoming a surgery and could be “readily converted back” into a home.
In depth: What is the economic case for Harrogate’s Station Gateway?
The saga over Harrogate’s Station Gateway took another turn this week when council officers revealed they were set to press ahead with the £10.9 million project.
North Yorkshire County Council, which is expected to vote to continue with the scheme on Tuesday, included an economic case for the scheme in documents sent to councillors ahead of Tuesday’s crunch vote.
The report says the initiative represents the “biggest investment in decades” in the town, will save shops from decline and make the town centre more attractive.
It was published without fanfare after the second round of consultation had finished, prompting business groups in Harrogate to criticise the county council for a lack of consultation. Business groups have long called for an economic impact assessment to be published.
The Stray Ferret has looked at the council’s economic case in detail to see why it is pressing ahead with the project.
Harrogate faces ‘economic challenges’
According to the county council’s economic case, the authority believes the gateway scheme will tackle “some of the economic challenges facing the Harrogate economy”.
The report cites a number of areas that need addressing, including job creation and access to education and skills.
Much of the 18-page paper centres around growing the Harrogate economy so it is “fit for the future”.
It argues that better access to the town centre will help to create jobs and increase the creation of businesses in Harrogate town centre.
The report cites an Office for National Statistics study which shows the number of new businesses set up in the town increased by 4% between 2014 and 2021 – below the Yorkshire and national average.

Graph of median annual earnings in Harrogate district compared with the national and regional average, as included in the report.
It goes on to say that residents in the district have higher than the average annual earnings, meaning there is a chance to “diversify” the town centre by encouraging more people into town.
Both of these areas could be tackled by improving access to the town centre and making it more attractive, council bosses say.
The report adds:
“Harrogate’s higher paid resident base suggests that there is potential to diversify the local economy, attracting high value, innovative businesses to invest in the town centre, opening up further employment opportunities in the town.”

The number of retail units in Harrogate town centre, as cited in the gateway report.
The report also warns that the town’s retail sector is at risk of decline.
It points to Harrogate Borough Council figures showing a reduction of 12% in retail units in the town centre in the last seven years.
It adds that the town needs to “diversify” in order to adapt to consumer behaviour – something which council bosses believe the gateway can address.
The report says:
“Evidence suggests that the town centre retail sector is at risk of decline in the medium term.
“Consumer behaviours and expectations are evolving and towns must diversify and advance to maintain health and vibrant visitor economies. the scheme is seeking to do just this.”
But, while the report addresses some of the town centre challenges, its critics say it offers nothing on how proposals in the gateway scheme will effect trade.
Businesses ‘not listened to’
While the county council has made efforts to push its economic case through an 18-page report and press releases to the media, it has not convinced local business groups.
In a joint letter to the county council leader, Cllr Carl Les, co-signed by Harrogate District Chamber of Commerce, Harrogate BID and Independent Harrogate, the groups argue that the report fails to address any of the concerns of businesses.
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The letter says the study is not dated and fails to take into account the impacts of covid on businesses. It goes onto say that next week’s vote on the scheme should be delayed until traders have had chance to scrutinise and comment on the report.
It says:
“Because of this lack of opportunity to comment on the economic impact study, we are now asking that the vote on the Project is postponed until your next executive meeting, allowing us, and others, time to digest its contents.
“However, having had a cursory glance through it, it appears the authors have looked to cities for case studies and not towns comparable to Harrogate. Also, they give examples from as along ago as 2007. The world has moved on a lot since then.
“It fails to take into account the impact of covid, out-of-town shopping centres with acres of free parking, and online shopping. And again, we say what of those residents living in our surrounding villages whose only way of getting around is via their car, or the tens-of-thousands of visitors who live outside the district?”

How James Street will look.
It also questions whether any impact of delivering the scheme on local businesses has been taken into account.
“It also appears the work to deliver this project could now creep into 2024. We were told it would take a year.
“Judging by the delays to ‘phase one of the Otley Road cycling path’, we have no confidence in your timescale. Does the economic impact study take into account the disruption delivering this Project will have on businesses already on their knees through to the ongoing impact of covid?”
What happens now?
Senior councillors have been recommended to approve the gateway project to be taken to the detailed design stage.
Councillors will make a decision at a meeting on Tuesday. The move would mean that work on the project could start in spring or summer.
Harrogate district reports 244 covid casesThe Harrogate district has reported another 244 cases in to today’s UK Health Security Agency figures.
Latest government figures show that the district’s seven-day covid average has dropped to 1,060 per 100,000 people, down marginally on yesterday’s figure of 1,061.
However, it is above the county average, which is 970, and the England rate of 977.
No further deaths from patients who tested positive for covid have been reported at Harrogate District Hospital, according to NHS England.
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The number of positive covid patients currently being treated at the hospital stands at 20.
According to government figures, 106,292 booster or third jabs have been given in the Harrogate district, as of today.
Harrogate business groups call for Station Gateway vote to be delayedBusiness groups in Harrogate have called for a vote on the town’s Station Gateway to be delayed after an economic case for the project was published just days before the key vote takes place.
In a letter to Cllr Carl Les, leader of North Yorkshire County Council, Harrogate District Chamber of Commerce, Harrogate Business Improvement District and Independent Harrogate said there was a “lack of opportunity” to comment on the paper.
The report, which is due before the county council’s executive next week, argues that the gateway will tackle “some of the economic challenges facing the Harrogate economy”.
The 18-page report goes on to cite various case studies and figures from the Office for National Statistics to support its case.
However, the three business groups said they have had no opportunity to comment on the paper and called for a vote on the scheme to be delayed until they have had chance to scrutinise it.
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- Business groups claim they’ve been ignored in Station Gateway consultation
They also criticise the council for releasing the report just a week before the vote on the project.
The letter says:
“Because of this lack of opportunity to comment on the economic impact study, we are now asking that the vote on the project is postponed until your next executive meeting, allowing us, and others, time to digest its contents.
“However, having had a cursory glance through it, it appears the authors have looked to cities for case studies and not towns comparable to Harrogate. Also, they give examples from as along ago as 2007. The world has moved on a lot since then.
“It fails to take into account the impact of covid, out-of-town shopping centres with acres of free parking, and online shopping. And again, we say what of those residents living in our surrounding villages whose only way of getting around is via their car, or the tens-of-thousands of visitors who live outside the district?”

Some of the proposed changes to Station Parade.
The letter also questions whether the study takes into account the effect of construction of the project on businesses who are “already on their knees through to the ongoing impact of covid”.
The letter comes at the same business groups accused the county council of ignoring their views and the opinions of residents during the Station Gateway consultation.
The Stray Ferret revealed this week that the county council is set to give the £10.9m project the green light at a meeting on Tuesday next week — even though the latest consultation revealed the majority of respondents feel negatively towards the scheme.
Earlier this week, Cllr Don Mackenzie, executive county councillor for access, described the scheme as the biggest investment in Harrogate “in decades”.
He said:
Missing teen sighted at Harrogate train station this morning“These proposals represent the biggest investment in Harrogate, Selby and Skipton town centres in decades.
“We want to encourage more people to travel by foot, bike and public transport because it is good for health and the environment by promoting fitness and reducing congestion.
“The spending will also provide a welcome boost for our town centres after two difficult years of trading during the pandemic.
“We have listened to feedback from the public consultations and are confident people will be pleased with the results.”
Police are searching for a missing teenager who may be in the Harrogate area.
Benjamin Robert Leach, 16, has been reported missing after leaving a property in Selby on Wednesday, January 19.
Officers carried out enquiries and believe he is in the Harrogate area after a sighting at Harrogate train station in the early hours of this morning.
A North Yorkshire Police statement added:
“Benjamin is described as 5ft 5in tall, with short dark brown hair and brown eyes.
“Any immediate sightings should be reported to North Yorkshire Police via 999 quoting reference 12220010596. Any information which would assist officers to locate Benjamin should be reported via 101 quoting the same reference number.”
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Improved Harrogate to London train service delayed
Concerns over infrastructure and rolling stock have delayed the introduction of improved direct train services between Harrogate and London.
A new timetable, with an earlier direct service to London King’s Cross, was due to be implemented in May 2022.
The shake-up was announced by LNER in June last year as part of wider changes to services on the east coast main line.
LNER said times between Harrogate and London would be about 10 minutes faster as part of the new timetable, which included:
- A service to leave Harrogate earlier, at 6.35am rather than 7.34am.
- A new seventh daily train would leave Harrogate at 6.35pm. On the current schedule, the last train departs at 5.36pm.
In the opposite direction, from London direct to Harrogate:
- Trains would start almost an hour earlier (6.40am rather than 7.33am).
- The final service back would also be earlier, at 4.39pm rather than 5.33pm.
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However, the improved services will now not be introduced after Network Rail recommended that the Department for Transport, which has the final decision on the timetable, delays the implementation.
The organisation said it had “concerns around infrastructure, rolling stock and performance and stakeholder feedback” with the changes.
Simon Leyshon, industry programme director for Network Rail’s east coast route, said it hoped to implement the changes as soon as possible.
He said:
“Postponing the new timetable change for the east coast main line allows us to dedicate more time to considering the views passengers and stakeholders shared with us during the consultation process last year.
“We’re now working closely with train operating companies and the wider rail industry to develop a timetable that meets passenger’s changing travel patterns and makes the most of the increased capacity on the East Coast main line following the £1.2 billion East Coast upgrade.”
Network Rail also pointed out that Harrogate had already seen an additional Northern service introduced on the Leeds to York line in December 2021.
Harrogate hospital covid death toll rises to 207Harrogate District Hospital has recorded another death from a patient who tested positive for coronavirus.
The hospital reported the death on Tuesday, according to NHS England figures. It takes the covid-related death toll at the hospital to 207.
Meanwhile, the number of patients who have tested positive for covid and being treated at the hospital has fallen to 20 – down by seven on last week.
Today’s figures from the UK Health Security Agency show that another 313 infections have been recorded in the Harrogate district.
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Government figures show that the district’s seven-day covid average is 1,061 per 100,000 people, slightly down on yesterday’s figure of 1,078.
It remains above both the county average, which is 976, and the England rate which is 971.
The data also shows that 106,176 booster or third jabs have been given in the Harrogate district, as of today.
Taylor Wimpey submits plans for 390 homes in RiponHousebuilder Taylor Wimpey has submitted plans for 390 homes in Ripon.
Government housing agency Homes England commissioned the company to build the scheme off West Lane as part of an £89.5 million contract.
The proposal, which already has outline permission, would see a mixture of two, three and four-bedroom homes built on the site.
Most of the houses will be for market sale, but 156 properties will be designated as affordable housing.
Sarah Armstrong, land director for Taylor Wimpey North Yorkshire, said:
“We’re delighted to have been selected as preferred developer to deliver this site in partnership with Homes England.
“We’ve taken a landscape-led design approach to develop a residential masterplan that will enhance the character and identity of the site.
“The development will include locally-equipped play facilities and attractive biodiverse landscape features, and we are providing significant areas of open space to allow new residents and visitors to enjoy a high-quality living environment with an attractive outlook.”
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Should planning permission be approved, Taylor Wimpey expects work to start in spring this year.
Homes England intervened to buy the site after Barrett Homes pulled out of the scheme in July 2020.
Marie Kiddell, head of planning and enabling north at Homes England said:
‘We intervened to buy West Lane in Ripon to unlock this stalled housing site.
“We’ve since appointed Taylor Wimpey, as our preferred developer, to take on the mantle of providing quality new homes, including 40% affordable provision – that’s 156 affordable homes in an area where they are most needed.
“Submitting the reserved matters application marks another step forward in bringing these vital new homes one step closer to reality.”
Harrogate Borough Council will make a decision on the plan at a later date.
Councillors back calls for 5% increase in Harrogate district taxi faresCouncillors have backed calls for a 5% increase in taxi fares to help cover soaring fuel prices and a drop in earnings for drivers during the covid pandemic.
The rise request was made to Harrogate Borough Council whose cabinet member for housing and safer communities, Cllr Mike Chambers, will now make a final decision whether prices should go up.
If approved, the increase would make the Harrogate district the 14th most expensive council area in the UK for taxi fares, according to national trade newspaper Private Hire and Taxi Monthly.
However, local taxi drivers have argued the district’s position is not as high for journeys above two miles.
Speaking at a meeting of the council’s licensing committee on Wednesday, Cllr John Mann, a Conservative who represents Harrogate Pannal, said he appreciated that prices may be higher than some areas but taxi drivers needed support.
He said:
“We seem to be in the middle of a cost of living crisis at the moment and we are all aware prices are going up rapidly.
“If you are a taxi driver all of this is not good because it eats into your profit. I do have sympathy with the trade.”
Cllr Sue Lumby, a Conservative who represents Harrogate Coppice Valley, added:
“If the trade is not profitable, no one is going to do it.
“It may help the public to have the rise if it means we keep the taxi drivers.”
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The 5% rise would be on the running mile and waiting times of journeys, and there would also be an increase in starting prices from £3.40 to £3.60 if approved.
The request comes after warnings that as many as 50 taxi drivers in the Harrogate district quit during the previous lockdowns and many have now found new jobs with little desire to return to the trade.
Last year also saw record costs for both petrol and diesel in the UK, with diesel hitting prices of over £1.50 per litre for the first time in history.
Driver shortages
During a consultation held in September, drivers said the trade had been “badly affected” by rising costs, not just on fuel but also vehicle prices and parts.
One driver told the council:
“Needless to say we are trading in difficult circumstances due to increasing costs, driver shortages and backlogs at DVLA and other agencies which is hindering the testing of new drivers.
“Although fuel prices seem to be rising on a daily basis one has to accept this trend cannot continue indefinitely.”
The consultation was held with 500 taxi drivers, although only 30 responses were received.
Speaking at Wednesday’s meeting, Gareth Bentley, licensing manager at the council, said this was a “fairly normal” response rate for consultations held with the trade.
He added:
“Clearly the trade is finding running vehicles considerably more expensive now.
“We do start from quite a high point in terms of our fares at the moment – and we have got to balance the needs of the travelling public with the trade’s ability to make a reasonable living.”