Councils to unveil plans to tackle coronavirus shortfalls

Council officials are expected to reveal recovery plans to tackle a £57 million shortfall facing North Yorkshire amid the coronacvirus pandemic.

Both Harrogate Borough Council and North Yorkshire County Council have been hit financially by the outbreak and racked up large deficits from tackling the virus.

The borough council faces an estimated shortfall of around £15 million due to loss of income from car parking and leisure during the lockdown.

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It had initially estimated a deficit of £10 million in April, but chief executive Wallace Sampson revealed the figure had increased just two weeks later.

In a report before cabinet last night, the council said it had received £1.65 million from government to support cash flow and had already put a freeze on non-essential spending and recruitment to tackle the deficit.

A financial recovery plan will be brought before senior councillors in July, which will outline how the council will address the shortfall further.

It comes as councils across the country have warned of job losses and cuts to services which will need to be made due to the cost of the pandemic.

In neighbouring Leeds, the city council has said it may need to cut 415 jobs and introduce an emergency budget in August as it faces an overspend of £200 million.

Richard Flinton, chief executive of North Yorkshire County Council, told senior county councillors that the authority faces a £42 million deficit.

Meanwhile, North Yorkshire County Council is expected to face a deficit of £42 million by the end of the year due to fighting the outbreak.

Richard Flinton, chief executive of the county council, told senior councillors earlier this month that the authority will have to take measures to address its finances.

Mr Flinton said, while the county council had been given £26 million in government support and will recover around £7.7 million in clinical commissioning group costs, it will still have to do more to tackle the deficit. He said:

“We are hopeful that the government will recognise the need for further funding.

“We will need to take measures ourselves to protect our financial position and we are calling on the government to help on some of those future income streams, particularly around council tax.”

Carl Les, leader of North Yorkshire County Council and finance spokesperson for the County Council Network, said he had told Chancellor Rishi Sunak about the financial state of local government and called for the same support as has been given to businesses.

‘I will not close Starbeck Baths’, vows council leader

The leader of Harrogate Borough Council has said he will not close Starbeck Baths after approving a shake-up of the district’s leisure services.

Residents in Starbeck vowed to fight any future threat to the 150-year-old baths after a council officer report suggested the facility’s future “would need to be considered”.

But council leader Richard Cooper said he has made it clear that it will not close under his leadership.

It comes as the borough council’s cabinet voted to set up a new company to run services, including Starbeck, as part of an overhaul of leisure and sport.

The council said the move would help to save around £400,000 a year on services. Starbeck Baths were among the facilities which increased in cost year on year.

Harrogate Borough Council’s cabinet addressed the fears over Starbeck Baths at a virtual meeting on YouTube last night.

A Freedom of Information request by The Stray Ferret showed the bill for running the baths increased from £234,193 in 2018/19 to an estimated £239,370 last year.

In a report before cabinet, the council estimated that it would save around £191,000 a year without Starbeck following investment and redevelopment of its other leisure facilities.

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Cllr Cooper said at the meeting streamed live on YouTube that he would not close the facility and the authority was being open with the costs of the baths:

“While I sit here, we are not closing Starbeck Baths and in any case it is not part of the plans. 

“It is just telling people how much things cost because we want people to know.”

Meanwhile, Michael Constantine, head of culture, tourism and sport, said the move was not a “stalking horse” and that any closure would need a separate council decision.

But Pat Marsh, leader of the Liberal Democrat group, said the she would rather Cllr Cooper had made a whole council commitment to Starbeck:

“I am pleased to hear the comments and to give the people that reassurance, but are we still going to have him as leader in a few years’ time?

“It would have been better if he had said: ‘This council will not close Starbeck Baths’.”

Last night, senior councillors voted to set up Brimham’s Active to run its leisure services which cost the taxpayer £3.5 million in the last financial year.

The authority 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 Council approves leisure services overhaul

Harrogate Borough Council will set up a new company to run leisure in the district as part of a shake-up of the service and press ahead with borrowing £26 million to invest in facilities.

Senior councillors on the authority’s cabinet last night voted to create the company, called Brimham’s Active, to run services such as the Harrogate Hydro.

The authority will also look to approach the government’s Public Works Loans Board to borrow £26 million to fund two capital projects, which include a refurbishment of the Hydro and a new leisure centre in Knaresborough.

It follows a council consultation which saw nearly half of respondents disagree with the move and residents in Starbeck vowing to fight any future threat to the area’s 150-year-old baths.

Councillors said the investment strategy and the new company go “hand in hand” and will help to reduce costs on maintenances and running leisure and sport.

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Stan Lumley, cabinet member for culture, tourism and sport at the authority, described the decision to set up the company as a “major decision” for the council.

He said: “It is the biggest financial decision for the council for many years and the investment strategy is crucial to enhance services.

“The company does what it says on the tin. It is not a privatised company, It is something I have been pushing for these past two years to make clear that it is administered by the council.”

Harrogate Hydro is among the facilities which will be run by the new leisure company.

Among the facilities that will be run by Brimham’s Active will be the Harrogate Hydro, Ripon Leisure Centre and Nidderdale Leisure Centre.

Leisure services in the district currently run at a loss of £3.5 million a year and some facilities have increased in cost year on year.

The council will spend £300,000 to set up the company through project start up costs and it is expected to operate from August 2021.

The decision will now go to a full council meeting to be rubber stamped.

No further coronavirus deaths at Harrogate hospital

Harrogate District Hospital has reported no further deaths from patients who tested positive for coronavirus, according to NHS figures today.

It means that the covid-19 death toll remains at 78 for people who have died in hospital in the district.

Meanwhile, a further 77 patients who tested positive for coronavirus have died in hospitals across England. Eight of those were in North East and Yorkshire.

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NHS England said the patients were aged between 29 and 98 years old. Two patients, aged 62 and 98, had no known underlying health conditions.

It brings the death toll nationally in the country’s hospitals to 28,138.

Yesterday, it was revealed that care homes in Harrogate had reported 83 coronavirus deaths.

Nearly half disagree with council’s leisure service shake-up

As senior Harrogate councillors decide on setting up a new leisure company to run services across the district, the responses from the public have not all been positive.

Nearly half of the 433 respondents to the council’s consultation on the future of leisure and sport said they either strongly disagreed or disagreed with the plan to set up an arms length company.

The authority is to vote tonight on whether or not to set up the company owned by the council, called Brimham’s Active, to run services such as the Harrogate Hydro and Ripon Leisure Centre.

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Within the consultation document there are a number of reasons why people don’t agree with the proposal.

One person said they were concerned that the move was the first step toward higher prices.

“Although it will be a Local Authority Controlled Company, I see this as the first step to handing over the company to a private company for profit and this would lead to higher charges in the long run.”

Another said the authority should retain control of the service.

“Given the anticipated savings are not proportionally huge, I would rather the council stayed in full control.”

Others said it should serve the interest of the wider public.

Giving over control of our wonderful leisure services to a private company (even a LACC), whose primary aim will be to generate a profit rather than serve the best interests of the society, seems a very bad idea.

Around 27% neither agreed or disagreed with the proposal, 19% agreed and 8% strongly agreed.

If given the go-ahead, the company would run services in Harrogate, Ripon, Knaresborough and Nidderdale.

The council said the company and future investment would help to save money on leisure services which currently operate at a £3.5 million loss.

But the plans have been met by opposition from both residents in Starbeck, where the local baths future would be considered by the council, and unions which expressed concern at the consultation process.

Harrogate Council to borrow £26 million to fund leisure overhaul projects

Harrogate Borough Council is expected to borrow money to fund two projects worth an estimated £26 million as part of its overhaul of leisure services in the district.

The council has linked the investment plan and the part privatisation of the service saying to two come “hand in hand” in order to save money.  However, the reality is that the two don’t necessarily have to be connected and the investment in leisure could happen without the partial privatisation if councillors chose to do this.

Two projects are lined up as part of the proposal, including refurbishing the Harrogate Hydro at a cost of £13.5 million and building a new leisure centre at Conyngham Hall in Knaresborough to replace the current site which is estimated to be £13 million.

The schemes would see an investment in current and new leisure facilities which the council said will help to reduce maintenance costs of the Hydro.

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According to a council report due before cabinet, the authority said borrowing for the projects would help to free up funds for its coronavirus financial recovery plan.

It said: “Given the unfunded nature of the capital strategy, beyond the existing five year programme (2020 to 2025), it would be prudent to fund the two schemes by external borrowing (given the council’s heavily under-borrowed position), though there may be potential to finance the design development from internal borrowing.”

When asked whether the council could invest in its facilities without a company, Councillor Stan Lumley, cabinet member for culture, tourism and sport at the authority, said the two go “hand in hand”.

He said: “The two decisions are separate but they go hand in hand.

“We need to invest in our stock to give us the best chance to save on the service. We looked at every option, compared them with each other and decided that this was the best option not just for the council but for the public.

“In order to free up our ability to provide a service, it has to be a commercial service.”

It comes as the authority’s cabinet will vote on handing over services to an arms-length company called Brimham’s Active on Wednesday in order to save money.

If given the go-ahead, it would mean facilities such as Harrogate Hydro, the Turkish Baths and Ripon Leisure Centre would be run by the new company.

The Turkish Baths, Harrogate, is among the facilities earmarked to be handed over to the council-owned company

The council’s services are currently running at a loss of £3.5 million and some centres and swimming pools in the district have increased in cost year on year.

But the leisure plan has been met with opposition from the community in Starbeck over the future of the 150-year-old swimming pool in the area and union’s raised concern over the authority’s consultation process.

Pat Marsh, leader of the Liberal Democrats group, said the authority needed to arrive at the right decision over the plan.

She said: “We have not been properly briefed on the proposal, so we have questions about it.

“Whatever decision the council makes it has to be right, because this is not a statutory service and the council does not have to run it.”

The Stray Ferret asked Andrew Jones, MP for Harrogate and Knaresborough, for a comment on the proposal but has not received a response at the time of publication.

Harrogate District leisure services cost taxpayers £3.5 million a year

Swimming pools, leisure and community centres in the Harrogate District are operating at a loss of more than £3.5 million a year.

According to a Freedom of Information request by The Stray Ferret, services run by Harrogate Borough Council are expected to cost the taxpayer £3,585,980 in 2019/20 and some facilities have increased in cost year on year.

Most facilities which are set to be handed over to a new council-owned company as part of proposals by the borough council are expected to make a loss.

The figures show that the Harrogate Hydro is the most expensive facility and is expected to cost £1,014,960 for the last year.

The total expenditure for the Hydro is estimated to be £2,168,140 in 2019/20 with an income of £1,153,180. The majority of the cost comes from staffing and additional expenses which accounts for £817,660 and £1.25 million of the bill.

Among the facilities and their cost were:

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Meanwhile, attendances at both facilities fell over the course of 12 months. The Hydro saw its attendances drop from 341,886 in 2018/19 to 322,889 last year.

The expenditure for the Harrogate Hydro as set out by Harrogate Borough Council.

It comes as the authority’s cabinet will vote on handing over services to an arms-length company called Brimham’s Active on Wednesday in order to save money.

If given the go-ahead, it would mean facilities such as Harrogate Hydro, the Turkish Baths and Ripon Leisure Centre would be run by the new company.

But the plan has been met with opposition by the community in Starbeck and was criticised by unions last week over its consultation response.

How will Brimham’s Active save money?

The total cost of running leisure services will beg the question as to whether or not the new company can make a dent in its overall loss every year.

According to a council report due before senior councillors, the company would save money through VAT benefits, business rates relief and investment in new and existing pools.

The council estimates that the company, which has a target set up date of August 2021, will save the authority around £284,000 a year which would potentially rise to £585,000 after investment in facilities.

The authority said around £222,000 a year would be saved in rate relief and £76,000 in VAT benefits as a result of handing services over to the company.

Meanwhile, the new company would have project start up costs of £300,000 which would be funded from the council’s investment reserves.

Is the future of Harrogate town centre more homes, less shopping?

As the government lines up plans to overhaul the UK planning system, could we see less shops and more homes and offices in Harrogate town centre as a result of the changes?

The town centre already has around 10% of its retail units sitting empty and an impending economic downturn could see that number increase.

But proposals lined up by the government could change how developers react to the loss of shops and what to do with them.

Ministers are to press ahead with measures which would see permitted development rights extended to empty outlets. It means that developers could demolish empty stores and replace them with housing without the need for a planning application.

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Further measures would see change of use rules relaxed, meaning unused shops could be turned into offices or homes.

James Tyreman, of Nicholls Tyerman estate agents, said the move would fit with an already popular town centre area to live in and converting a building would depend on its location.

He said: “It would depend on the right building and the right address.

“The town centre area is popular to live in and Harrogate has a lot of very attractive buildings. But it is very much a case of the right address and right location.”

Meanwhile, James Hobson, managing director at JEH Planning, said the reuse of vacant units will be crucial in helping the local economy after the pandemic.

He said: “Serious consideration will need to be given to the potential re-use of vacant retail premises and other commercial space for other uses, something that can be a controversial topic in Harrogate.

“However, if planners do not grasp and act on this issue, we could be preventing economic stimulus at a time that we have never needed it more.

“As part of this, we need to be completely realistic as to how much business and commercial space can be viably re-provided on site, and indeed how much affordable housing can be funded as part of mix use redevelopment proposals.”

He added that greater flexibility in the planning system would be key for those changes and to help high streets flourish.

The town centre has a Masterplan drawn up by the borough council, that was published four years ago. Critics argue that times have changed with increased online shopping and now the impact of coronavirus lockdown on the town centre.

 

The masterplan suggests the pedestrianisation of James Street which is the source of real concern to some traders

The Stray Ferret contacted Harrogate Borough Council leader, Richard Cooper, in advance of this article to request an interview on the vision for the town and traders concerns, but received no response.

Independent Harrogate have already made their voices heard and called for a rethink of the plan.

In its manifesto, the trade association said the town centre faces a crisis amid the pandemic and described the plan as “outdated”.

The publication of the manifesto was another example of the growing frustration among traders who feel the town’s future and its high-end shopping, which it is famous for, is at stake.

A spokesperson for the group said:

“We are terribly worried, there are various businesses that have already closed.

“The government have been supportive, but the local authority have got to be supportive too.”

At this critical juncture, there is a responsibility on policymakers to shape plans for the future. But there is also a responsibility on us to shop local if we want the stores we like to survive.

Can Harrogate compete with Leeds as shops reopen?

Yesterday, we reported on the anxieties of shoppers returning to clothes stores in the district. Given the fear expressed by many of stepping foot back onto the high street, is Harrogate doing enough to entice them back in?

As part of examining what the town is doing to win over shoppers, we looked at Harrogate’s closest retail rival and a city which attracts a lot of shoppers from the district.

16 miles down the road in Leeds, the city is putting in place a range of measures to bring customers back and encourage them to part with their hard earned cash again.

The city is offering free car parking for another month, as well as deep cleaning the streets and offering hand sanitiser on demand.

The city council has worked with the local BID to come up with measures to entice shoppers in and also offer reassurance, including one way systems and more outdoor space for street cafes in areas like the Corn Exchange and Park Row.

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Judith Blake, leader of Leeds City Council, said the measures were important to get the city back up and running again.

She said: “Getting our city centre and district centres back open again will be a key priority in the weeks ahead, however it needs to be done in a careful and controlled way in order to keep everyone safe.

“I’d like to thank everyone involved in creating and implementing this plan, and I’d like to again thank the people of Leeds for their resilience and ask that it continues in terms of following the rules and adhering to the two-metre social distancing especially.

“Things may look a bit different in our public spaces, but if everyone follows the rules they will be safe places to work and visit as we start the process of recovery in Leeds.”

In light of the measures being put in place, can Harrogate compete and win over the anxious shopper?

Harrogate Borough Council was handed £141,000 from the European Union to help reopen and advertise the high streets, but a plan of how the money will be spent has yet to be revealed.

Meanwhile, the authority’s decision to reintroduce car parking fines left local trade associations frustrated and deeply disappointed.

Harrogate BID launched a deep clean of the town centre earlier this week.

Harrogate BID has also outlined its own plans to make the town centre attractive to shoppers again and started to put measures in place.

A deep clean is already underway and the group is in negotiations with a supplier to introduce high street daytime hosts and nighttime street marshalls in a couple of weeks.

The hosts will be tasked with giving shoppers peace of mind as lockdown is eased by welcoming them to the town centre, giving out information and noting hotspots that need to be cleaned.

Areas like James Street have already had pavements widened and retailers have also been offered social distancing posters to reassure shoppers that their experience will be safe.

Floor stickers will help to show customers where to stand two metres apart.

Sara Ferguson, acting chair of Harrogate BID, said the organisation was aware of the challenges that face retailers in the district but added that she was optimistic of shoppers coming back.

She said: “We are trying to make it as welcoming as possible.

“I feel like people are a bit sick of lockdown and there will be changes on the high street for sure, but people will have time to shop.

“I’m hoping that people will feel a bit more relaxed.”

Tomorrow in our final report, we look at the longer term plans for Harrogate.

Harrogate Monsoon store saved from closure

Harrogate’s Monsoon Accessorize store has been saved despite the company announcing a string of store closures after falling into administration.

Monsoon brought in administrators late on Tuesday before being bought out by Adena Brands Ltd through a pre-pack deal which was announced this morning.

Administrators FPR Advisory secured the deal with Adena, which is owned by Monsoon’s founder Peter Simon, which will see 450 jobs transferred over to the company.

But, 35 stores will still close across the UK and 545 staff will be made redundant.

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Harrogate’s Monsoon Accessorize store on James Street is not included on the list of closures released today.

The news comes as non essential retail, such as clothes stores, will reopen on Monday after lockdown is eased.

Mr Simon has promised to inject £15 million into Monsoon so it can continue trading and will work with administrators to negotiate leases on 162 stores and secure more than 2,300 retail jobs.

Tony Wright, joint administrator and partner at FRP, said: 

“We had to move quickly and decisively to secure the future of Monsoon and Accessorize, as many jobs as possible and the presence of these two iconic brands on the UK high street. After assessing a range of options this deal achieves those goals with least disruption to the business in an already challenging retail environment.

“We are now committed to working with Adena Brands as they enter talks with landlords to agree future terms across their store portfolio and look to transfer more jobs to the buyer. We’ll also be working with the Redundancy Payments Service to support all affected employees through this difficult time.”