County council ‘stands by’ under-threat Welcome to Yorkshire

North Yorkshire County Council has said it will stand by under-threat Welcome to Yorkshire after the organisation revealed it requires £1.4 million to survive amid the coronavirus crisis.

A year since the troubled tourism body was marred by scandal, WTY wrote to council bosses across Yorkshire last week requesting financial support to stay afloat – of which around £450,000 is needed from authorities in North Yorkshire.

The tourism organisation was deprived of £1 million in business rates after councils in North and West Yorkshire saw a loss of income due to the pandemic. A further £400,000 shortfall was created when WTY suspended its membership fees.

Both North Yorkshire and West Yorkshire councils agreed in October 2019 to give WTY £1 million of public money to continue operating after it was suggested it would be more “cost effective” than closing the organisation down. Now, the body finds itself asking for more taxpayer money to survive.

A meeting of the tourism body’s board was held in private last week to discuss the financial gap, despite current chairman, Peter Box, promising to hold meetings in public when he was appointed last year.

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It comes after WTY was hit by controversy when former boss, Sir Gary Verity, resigned in March 2019 on health grounds but faced allegations of bullying and inappropriately claiming expenses.

Two inquiries carried out after Sir Gary’s resignation cost the tourism body £482,500, and former boss, Paul Scriven, told the House of Lords it had a “culture of toxicity” and misused public funds.

Investigators looked at expenses worth around £900,000, of which £26,000 were of a personal nature. Sir Gary has denied all allegations of wrongdoing.

North Yorkshire County Council says it will stand beside Welcome to Yorkshire as it faces a financial challenge.

Now, WTY has found itself in a financial hole amid the pandemic and has turned to local councils to bail it out.

Two authorities, Ryedale and Hambleton, have already said they will not pay their share to support the organisation.

Both the county council and Harrogate Borough Council confirmed they had received the letter from WTY and would continue to work to determine what financial support could be offered.

Gareth Dadd, deputy leader of the county council and executive member for finance, said:

“We are working with other councils across the region to work through funding support for Welcome to Yorkshire.

“We put great value on the very positive work the company has done, which has enormously enhanced the Yorkshire brand.

“Prior to the pandemic we were welcoming record numbers of tourists to North Yorkshire and the visitor and hospitality economy here employs tens of thousands of people bringing around £1.9 billion to the county’s economy.

“Now is the moment we need to get behind the tourist industry – so we are standing beside Welcome to Yorkshire as one of the key agents to make this happen.”

In a statement following its meeting last week, Mr Box said the body required further discussions with local authorities over financial support.

He said: “There’s more work to do before we can agree a way ahead. We will continue to talk to council leaders about financial support and the options that flow from that.

“The response we’ve had from leaders over the past few weeks has been encouraging and we were able to have a constructive discussion at this afternoon’s Extraordinary Board Meeting. We will have further talks before we plot a way forward.

“I’m grateful for the support we’ve already had from council leaders, and others, across Yorkshire. If we are going to deliver a successful economic and social recovery from the pandemic, tourism will have to play a crucial role in that.

“Without a thriving tourism industry, there won’t be the kind of recovery we all want to see in Yorkshire.”

New budget amid coronavirus costs ‘not necessary’, says council

Harrogate Borough Council bosses have said setting an emergency budget is not considered necessary at this time, despite the authority facing a £15 million shortfall due to coronavirus.

Council officials have outlined a financial recovery plan as part of the authority’s response to loss of income as a result of the pandemic.

It comes as councils across the UK are warning that some may have to issue section 114 notices – an emergency measure in dire financial circumstances – and potentially cut services to deal with the financial gaps.

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Meanwhile, Leeds City Council recently warned that it faces £200 million costs amid the pandemic. Leader of the council, Judith Blake, said the authority may have to cut vital services in order to balance its books.

But, the borough council has said that any section 114 notice or mid-term budget is not necessary and it will monitor the situation.

Harrogate Borough Council’s cabinet will meet virtually again next week to discuss its financial recovery plan.

Council Virtual Meeting

In a report due before a cabinet meeting next week, Wallace Sampson, chief executive of the authority, will say that the council will review its 2020/21 budget and reserves as part of its recovery plan. It says:

“Across local government some councils are having to consider whether to produce a new mid-year budget or to issue a section 114 notice in the event that resources are unlikely to be sufficient to meet expenditure.

“However, at this time it is considered that neither of these actions are necessary, although the situation will be regularly monitored.”

The authority faces a £15 million shortfall due to loss of income on such things as leisure and car parking. A grant of £1.65 million was granted to the council by government to help with cash flow.

In an effort to tackle the deficit, senior officers at the authority have outlined a financial recovery plan which will go before senior councillors.

As part of the plan, council bosses will review the authority’s 2020/21 budget, reserves, investment plans and capital expenditure including borrowing.

Officers are expected to report more on the council’s financial position once the reviews are complete.

Meanwhile, the authority has already frozen all but essential spending and implemented a recruitment freeze on all but critical services.

It comes as both the district council and the county council face a combined deficit of around £57 million due to the pandemic.

What is a section 114 notice?

A section 114 notice means that a local council cannot set a balanced budget and new expenditure is banned.

Once a notice is served by the council’s chief finance officer, councillors and senior officials have 21 days to come up with a new budget to balance its books.

In 2018, Northamptonshire County Council was forced to serve two section 114 notices as it failed to tackle its spiralling spending which resulted in an estimated £70 million deficit. The council will now be scrapped in April 2021 and replaced with two unitary authorities.

Harrogate hospital reports no new coronavirus deaths

No further deaths of patients who tested positive for coronavirus have been reported at Harrogate District Hospital, according to today’s NHS figures.

It means the total number of deaths at the district hospital remains at 80.

Nationally, a further 51 people who tested positive for covid-19 have died in hospitals with eight confirmed to have died in Yorkshire and the North East.

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NHS England said the patients were aged between 48 and 96 years old and all had known underlying health conditions.

It means the coronavirus death toll in hospitals across England has increased to 28,435.

Council commercial tenant’s rent free period to end

A rent free holiday for Harrogate Borough Council’s commercial tenants will not be extended beyond the end of June as the authority prepares to tackle a £15 million hole in its finances as a result of the coronavirus pandemic.

The authority gave 185 of its tenants three months rent free back in March as part of its response to the coronavirus pandemic.

While most local authorities decided to defer rents for local companies, the borough council opted to wave them completely for its tenants.

The decision, which was taken at an urgent cabinet meeting chaired by council leader, Richard Cooper, was revealed to cost taxpayers £200,000.

Some businesses received a double dose of public money with many applying for emergency government grants on top of a rent free period.

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At the time of the decision, a joint statement from Cllr Cooper and chief executive Wallace Sampson said the authority wanted to encourage others to offer support.

It said: “Our commercial tenants will be offered three months’ rent free and we’ll be doing all that we can to encourage other landlords in the district to consider what support they can offer their tenants.”

Now, the council has confirmed that the period has not been extended beyond the three month period as it faces a £15 million shortfall due to the coronavirus pandemic.

In an effort to tackle the deficit, senior officers at the  authority have outlined a financial recovery plan which will go before a cabinet meeting next Wednesday.

As part of the plan, council chiefs will review the authority’s 2020/21 budget, reserves, investment plans and capital expenditure including borrowing.

Officers are expected to report more on the council’s financial position once the reviews are complete.

Meanwhile, the authority has already frozen all but essential spending and implemented a recruitment freeze on all but critical services.

It comes as both the district council and the county council face a combined deficit of around £57 million due to the pandemic.

Councils urged to help pubs and restaurants create more space

As pubs and restaurants have now been given the go-ahead to reopen next month, the political debate has shifted kerbside as councils are urged to allow businesses to create space on pavements for drinkers and diners.

Prime Minister Boris Johnson announced this afternoon that pubs, restaurants and hotels will be able to reopen from July 4 after three months of lockdown.

The two metre social distancing rule will also be relaxed to one metre where possible, but people will be encouraged to use their “common sense” and keep their distance.

But the debate among local politicians has now shifted onto how to help businesses deal with the number of customers who are eager for a pint while abiding social distancing guidance.

Ahead of the announcement, trade bodies in the Harrogate district called for quicker licensing laws to help pubs and restaurants open more space onto pavements to increase capacity.

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Geoff Webber, leader of the Liberal Democrat group on North Yorkshire County Council, said that the district and county authority should support businesses where possible and monitor social distancing.

He said: “My first reaction is that it is too soon.

“But as a county council we should do everything we can to assist business. There is a danger that the pavements can get congested, so it needs to be monitored.”

Andrew Jones, Conservative MP for Harrogate, said in the House of Commons this afternoon that he supported using outdoor space for hospitality and added that jobs in the district “depended on it”.

Pleased to be able to ask @BorisJohnson about using outdoor space to ensure space for hospitality businesses to open safely. Many jobs and businesses depend on this locally in #Harrogate & #Knaresborough. pic.twitter.com/lrdHA8qEpy

— Andrew Jones MP (@AJonesMP) June 23, 2020

In response to Mr Jones, the Prime Minister urged local authorities to “be more creative” and said that there was “plenty of space to be found”.

Julian Smith, Conservative MP for Ripon and Skipton, has been contacted for comment on the news but has yet to respond.

Jack Woodruff, owner of The Disappearing Chin in Beulah Street, Harrogate, said a quicker licensing process would help  to open up more space in front of the bar.

He said: ”I’d like to hear a relax in outdoor licensing law from the government,

“I had one in from months ago but you have to go through several agencies.

“A relaxation to those rules would be ideal and it would be a really big help as we have a few areas that would allow that at the front but currently can’t use.”

The news comes as businesses in the district called for clarity on the the rule in order to reopen in July.

Pub, hotel and restaurant owners said the rule needed to be relaxed in order for their businesses to be viable after lockdown.

Two North Yorkshire recovery plans launched to save tourism

Two county-wide recovery plans are set to be put in place to help tourism and hospitality as the industry faces a battle to recover from coronavirus. 

Analysis by the York and North Yorkshire Enterprise Partnership has forecast 20,000 jobs losses and a drop in value of 40% across the sector this year as a result of the pandemic.

The industry in the wider-county, which is worth around £9 billion a year, has taken a hit due lockdown as hotels, attractions and the hospitality sector have been closed for the past three months.

It comes as Prime Minister Boris Johnson is expected to make an announcement today on the two metre distancing rule and further relaxing of restrictions.

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Bosses at the North Yorkshire LEP have launched an economic recovery plan for the region which will focus on getting people back to work, greater digital connection and safer, greener public spaces.

David Kerfoot MBE DL, chair of the York & North Yorkshire Local Enterprise Partnership, said:

“The Covid-19 pandemic has bought challenge in one way or another to every single one of us, yet it has undoubtedly impacted heaviest on those in our society who already had the least.

“It is absolutely crucial that this vision is realised. We must ensure those who have previously been left behind aren’t pushed further into the margins. 

“We must seize the incredibly unique opportunity we have to grow and strengthen our economy, whilst positively mitigating against climate change.”

Meanwhile, Welcome to Yorkshire has also launched its own recovery plan to help the industry and its 225,000 employees.

The organisation has said it will offer regional support for businesses, introduce a Yorkshire gift card for customers and launch a marketing campaign for the county.

The move comes as owners of firms in the Harrogate hospitality sector have urged for clarity on the one metre rule in order for hotels, bars and restaurants to reopen.

But some restaurant owners have warned that some in the industry may not survive.

David Straker, co-owner of popular Harrogate restaurant William & Victoria told The Stray Ferret that the situation is perilous for many restaurants in the town.

He said:

“It’s hard. It’s really, really hard. We’re fortunate here as we own our property and we have a fantastic loyal clientele which is absolutely paramount to a business.”

District hotels, pubs and restaurants desperate for one metre clarity

Hotel owners, pub landlords and restaurants in the Harrogate District say they are desperate for clarity on the reopening of the hospitality sector after a tough three months of lockdown.

Prime Minister Boris Johnson is expected to make an announcement today on cutting the two metre social distancing rule and relaxing restrictions as pressure mounts on the government to revive the economy.

It comes as the industry has been hit hard by lockdown with hundreds of staff furloughed and hotels, bars and restaurants closed to the public since March.

In Harrogate, Simon Cotton, owner of The Yorkshire Hotel and White Hart Hotel, said introducing a one metre rule would “without question” help his business and boost capacity to around 80% compared with just 25% under the current guidance.

The Yorkshire Hotel, Harrogate.

Mr Cotton added that he was eager for the government to give more clarity on social distancing rules so that hotels can prepare for a July opening.

He said: “We need to know that now. We have prepared for a lot of things, but we cannot do more until we known the rules.

“We are desperate for this to be able to plan. We are in the time of the year where we normally make our money. It is where most businesses survive. If you do not have a good summer, then you will not survive the winter.”

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The need for clarity is shared by pub owners who will have to grapple with the number of drinkers looking for a long awaited pint.

Trade bodies have already called for local authorities in the district to speed up the licensing process to help bars in the district open out onto the street and create space for customers.

But Tony Brown, manager at The Crown in Pateley Bridge, said it would not be viable for his pub to reopen if the two metre distancing rule is not cut.

He said: “For us, it’s quite simple, if social distancing doesn’t come down from two metres to one, it won’t be financially viable for us to reopen on July 4.

“Even with a change in social distancing, we will still need to look at what other measures we will need to put in place, such as a screen at the bar and markings on the floor. I’ve kept in touch with our regulars and they can’t wait for us to reopen.”

Sara Ferguson, owner of Sasso restaurant in Harrogate.

Meanwhile, Sara Ferguson, owner of Sasso restaurant on Princes Square, Harrogate, said the need for a clear picture from government extends to staff.

She said: “We need clarity on whether it’s one metre or two metres and whether we are allowed customers inside or outside.
“We also need clarification on the coronavirus job retention scheme and if staff can work part time.”
Vulnerable Harrogate council taxpayers to see £150 cut in bills

Council taxpayers in the Harrogate district who are struggling to pay their rates will receive a £150 cut in their bills amid the coronavirus pandemic.

Harrogate Borough Council will reduce the bills as part of a £500 million hardship fund announced by the government back in March.

The authority has received £863,157 from the Ministry of Housing, Communities and Local Government, based on an estimated 4,000 council taxpayers who receive support for their bills.

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As part of the support package, those who already qualify for the council tax reduction scheme will see their bills reduced.

In a report before the council’s cabinet, Wallace Sampson, chief executive of the authority, said the council was supporting those who are the most vulnerable.

Mr Sampson added that every home which is eligible will receive the support “in the first instance”. He said:

“The covid-19 pandemic has set an unprecedented challenge which the council has responded to well through its support to some of the most vulnerable in our community, as well as to those businesses that have been hit the hardest through the crisis.”

Laura Ashley in Harrogate to have closing down sale

Laura Ashley is set to reopen its branch in Harrogate this weekend for a closing down sale as administrators keep the company’s stores under review.

The outlet on James Street in the town centre will open its doors on June 20 as part of a reopening of stores across the country.

Social distancing measures will be in place, including floor markings, and fitting rooms will be closed.

The company’s stores are expected to trade until further notice.

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It will be the latest retailer to reopen since lockdown restrictions were relaxed on non-essential shops earlier this week.

It comes as Laura Ashley brought in administrators PwC back in March after trading concerns due to coronavirus. PwC sold part of the company to Gordon Brothers, but it did not include any of the 147 stores in the sale.

A spokesperson for PwC said:

“The administrators continue to review the position of Laura Ashley stores and will provide further updates in due course. Laura Ashley stores in the UK started to reopen from June 15 in line with government guidance. 

“The administrators continue to trade the e-commerce business and prepare for all stores to reopen once permitted to do so, to sell through the stock on hand.”

The company announced earlier this week that a further 56 redundancies will be made at the business in head office and back office positions.

It follows 268 roles which were scrapped back in April.

Lib Dems criticise ‘abysmal’ communication over leisure company

Harrogate Liberal Democrats have criticised an “abysmal lack of communication” from the borough council on its decision to overhaul leisure services in the district.

Councillors on the opposition group said concerns raised about the shakeup “fell on deaf ears” and added that many were left unaware of the consultation.

The criticism comes after senior councillors last night voted to set up a new company, called Brimham’s Active, to run facilities such as the Harrogate Hydro, Ripon Leisure Centre and Nidderdale Leisure Centre.

Liberal Democrat councillors have set “red lines” for the company, including transparency, affordable prices and investing profits back into leisure.

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The group has also called for Starbeck Baths to be protected. Council leader, Richard Cooper, has vowed not to close the facility while he was in post.

Pat Marsh, leader of the Liberal Democrat group, said the communication from the authority gave her “no reassurance that this will be transparent and accountable”. She said:

“If this is to go ahead it must be done with very little day-to-day difference within the service.

“It must be about delivering a quality service, not a profit-hungry corporation. It must remain affordable, with prices not increasing beyond inflation. It must guarantee the protection of services, especially Starbeck Baths. 

“It must be transparent and accountable, with major decisions being made by full council. Current workers must be protected and new staff must receive the same pay and conditions.”

The council said it will save around £400,000 a year on leisure and sport, which last year was estimated to have cost taxpayers £3.5 million.

Council officials will also borrow £26 million from the government’s Public Works Loans Board to fund an investment strategy into the Harrogate Hydro and a new leisure centre in Knaresborough.

The new company is expected to be operating by August 2021 and will cost the council £300,000 to set up.

Harrogate Borough Council has been approached for comment.