Calvin Robinson Chief Reporter, Author at The Stray Ferret

Council steps in to buy Summerbridge social housing

Harrogate District Council has stepped in to buy five homes in Summerbridge for social housing after a national housing charity pulled out of the development.

The homes, worth around £395,000, at Poppyfields will be offered to people in Upper Nidderdale as social rented properties.

The houses were originally allocated as four affordable rented properties and one shared ownership as part of a wider 13 home development.

Housing sites, such as Poppyfields, have a requirement to allocate 40% of homes to affordable housing.

But the original housing association for the affordable homes, Home Group, pulled out of projects across the country in March in order to focus on other “strategic sites”.

Now, senior councillors on the authority’s cabinet have voted to step in to purchase the houses and offer them to local residents in order to salvage the housing scheme.

The council said the current pandemic has left “considerable uncertainty” in the housing market and an increase in demand for rented homes in Nidderdale.

Mike Chambers, cabinet member for housing, said it was right for the council to step in.

He said:

“It is very appropriate that we buy these houses.

“It allows us to provide much needed accommodation to people in Nidderdale and also has the effect of us being able to assist a small enterprise who might have otherwise had a difficult time in moving these houses.”

Hospitality reopening crucial for Harrogate after tough lockdown

The reopening of bars, restaurants and hotels across the Harrogate District is a vital moment as the hospitality sector looks to recover from the battering of three months worth of lockdown.

Since March, the industry, worth around £200 million a year for Harrogate alone, has borne the brunt of the economic impact of lockdown with furloughed staff, loss of customers and no income.

It’s been three months since the last pint was pulled and hotel doors were closed on an industry that relies on the public to venture out and part with their hard earned cash to survive.

Now, as revellers await that long awaited beer with friends or an evening meal, hospitality owners say they need to make the best of the lockdown relaxations.

Peter Banks, managing director of Rudding Hotel and Spa in Harrogate.

Peter Banks, managing director of Rudding Park Hotel and Spa, said the sector was entering “the great unknown” this weekend but it was vital for it to reopen.

He said:

“We are delighted that we are allowed to reopen.

“But we do not know what level of demand we are going to see or how customers are going to behave.

“The government has given us guidance that is open to our interpretation and everybody is doing what they think is best.

“It is like going into the great unknown.”

Meanwhile, the sector, which employs around 9,500 people across the district, has reopened at a key time.

Space has already been created by North Yorkshire County Council for some bars and restaurants, with temporary pedestrianisation expected on Parliament Street and Kings Road.

Measures to ensure social distancing are also in place with pubs taking bookings for tables ahead of reopening and people registering their details with restaurants before they enter in order to help with track and trace.

But, while some are happy to see the sector reopen, owners are under no illusion that the spring months will be key for businesses to survive.

Simon Cotton, managing director of the Fat Badger pub and White Hart Hotel, told The Stray Ferret recently that for some firms the next three months is crucial to survive the winter period when custom often drops off.

Mr Banks added that some businesses were already looking six months ahead and planning into next year for bookings.

“The next three months will be crucial because people have built up a war chest of income.

“My concern is that from September or October that is going to reduce and the amount of money that will be in circulation will drop and it will be a tough winter.”

With that in mind, as Harrogate’s hospitality sector opens its doors once again, it will be on us to visit our favourite bars, restaurants, hotels and cafes to ensure they survive.

County council ‘can avoid bankruptcy’, says leader

North Yorkshire County Council may have to use funds reserved for major projects in order to balance its books amid the coronavirus pandemic but can avoid bankruptcy, says the authority’s leader.

Speaking to The Stray Ferret, Carl Les said the county council had enough reserves to see it through the pandemic if no funding was forthcoming from government.

However, it could mean major projects – such as improving broadband across North Yorkshire – have to be put on hold.

Cllr Les said the council has around £50 million held over for a “rainy day” and faces a deficit of £42 million due to coronavirus.

Both the county council and Harrogate Borough Council face combined shortfalls of £57 million as a result of responding to the outbreak and loss of income.

The authority had reserves, both emergency and investment, that could cover its costs from responding to the outbreak. But, Cllr Les said, some of that cash was earmarked for major projects such as improving broadband in the county.

North Yorkshire County Council leader, Carl Les

He added the authority would not need to issue a section 114 notice, which is tabled by finance officers in dire financial circumstances, nor would it need an emergency budget. He said:

“The county council has been very prudent in putting money aside for a rainy day.

“But what worries me is using the development costs.”

It comes as the government announced a further £500 million support package for local councils today to help with spending pressures.

The County Council Network had previously called on ministers to provide further financial support for councils who may need to use up reserves to cover coronavirus shortfalls.

Funding allocations have yet to be revealed, but the scheme is expected to reimburse authorities for lost income and allow council tax and business rates deficits to be paid over three years instead of one.

Simon Clarke, local government minister, said today:

“Since the start of this pandemic, local councils have been at the forefront of our national effort to tackle the virus, and they will continue to play a significant role as we look towards our recovery.

“We are more committed than ever to unite and level up this country and this package will ensure councils have access to vital, additional funding so they can continue to serve their communities as they so admirably have done to date.”

Council can ‘still balance budget’ despite £15m shortfall

Harrogate Borough Council faces “significant detriment” to its finances but can still come up with a balanced budget, say council officials.

Senior councillors on the authority’s cabinet signed off on a financial recovery plan last night which will see the authority review its budget and reserves as it faces a £15 million shortfall due to coronavirus.

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 and bring them before future cabinet meetings.

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.

Other authorities, such as Leeds City Council, have warned of that the crisis would leave them with no choice but to cut frontline services if no financial backing is given by government.

But Paul Foster, the council’s head of finance, assured senior councillors that the authority was not at the stage of putting together an emergency budget and that it still thinks it can meet a balanced budget.

He said: “It will come as no surprise that the council will be faced with significant financial detriment as a result of covid-19 as many other organisations are.

“The financial implications are challenging to estimate with certainty as the number of unknowns to how long lockdown will continue and what will recovery look like.

“I am pleased to say at this stage we are not at that position, we still think that we can balance the budget for this year.

“I am not contemplating issuing a section 114 notice and we are also not looking to do an emergency budget.

“Only if we get to the stage that we need to issue a section 114 notice would we consider any more severe restrictions on spending.”

Mr Foster added that the council had faced additional costs in responding to the crisis on IT and homelessness and lost income on the convention centre, parking and leisure services.

However, Cllr Graham Swift, cabinet member for resources, said the council was in a better position than others and the authority had been “prudent” with its investments.

He said: “We are going to be impacted by a variety of lost revenues in car parks, pools and other things that generate money for us.

“But the reality is that we are not exposed with the risk profile that some very significant large and small councils around the UK are engaged in.

“I think it’s a testament to our council have put our finger in the pie in investment, but we have done it prudently and with a balance risk approach which is frankly paying off at this stage.”

11 days without a coronavirus death at Harrogate Hospital

No deaths from patients who tested positive for coronavirus have been reported at Harrogate District Hospital for 11 days, according to NHS figures today.

It means that the death toll at the district hospital remains at 80.

The news comes as it was revealed Harrogate has the second-highest coronavirus death rate in North Yorkshire despite the fact that it is the least deprived district.

Meanwhile, nationally, a further 50 people who tested positive for covid-19 have died in hospital. Of that number, four were in North East and Yorkshire.

NHS England said the patients were aged between 52 and 97 years old. Two patients, aged 52 and 63, had no known underlying health conditions.

It means the death toll in England has increased to 28,759.

Council misses debt recovery target by more than half

Harrogate Borough Council failed to meet targets for council tax collection, business rates and debt recovery this past year – which included one invoice worth £180,000.

According to a performance report due before the authority’s cabinet, the council missed its debt recovery target by more than half as just 18% was recovered against a target of 60%.

The authority said the performance was “significantly below” target. A total of £296,000 was referred to legal services to be recovered, of which £180,000 came from one invoice.

Officials said in the report that payment terms have been negotiated on the invoice and that they expect to recover the sum.

Meanwhile, the borough council collected 97.9% of council tax against a target of 98.3%.

The authority also missed its business rates collection target by 1%.

Council bosses put part of the performance down to a slowing of collection in March when the country was put into lockdown amid the coronavirus outbreak.

Further support for those struggling to pay their council tax was revealed last week when the council offered to cut bills for vulnerable rate payers by £150.

It comes as the council has been hit with a deficit of £15 million amid the pandemic, part of which is down to a loss of income due to lockdown.

Senior councillors are set to discuss recovery plans tonight, which will include reviewing the authority’s budget and reserves.

County council needs more funding to tackle future coronavirus costs

North Yorkshire County Council needs guaranteed income from government to tackle future costs of coronavirus after spending on tackling the crisis is forecast to reach £76 million, says the authority’s leader.

Speaking to The Stray Ferret, Carl Les said the council had been “prudent” with its reserves but needed more backing from government to see out the pandemic and to tackle future costs to the council.

Part of the cost comes with the county council’s responsibility to provide personal protective equipment which cost the authority around £250,000 per week at the peak of the virus. The council has also provided daily support for care homes and 3,000 vulnerable people in the county during the pandemic.

It comes as the authority and Harrogate Borough Council have forecast deficits of £57 million due to a loss of income during the outbreak.

As previously reported, Richard Flinton, chief executive of the county council, told senior councillors earlier this month that the authority has forecast a gross spend around £76 million on fighting the virus.

North Yorkshire County Council leader, Carl Les.

But the council has received £26 million in government grants and expects to recover £7.7 million in clinical commissioning group costs.

It leaves a deficit of around £42 million. Cllr Les said the authority and other county councils need backing from government in order to set balanced budgets next year as further funding gaps open.

Analysis by the County Councils Network (CNN) revealed that 39 county and unitary authorities across the country could be faced with using up their available reserves for 2021/22 to cover a £2.5 billion funding gap amid the pandemic.

It added that a second wave and another lockdown could increase the funding shortfall county councils face to an estimated £4.5 billion over the next two years.

The report acknowledged that current grants from government have reduced the costs of the crisis but is not sufficient enough to plug the gap and more support was needed.

Cllr Les, who is also financial spokesperson for the CNN, said the county council had reserves, both emergency and investment, which will cover its deficit if no financial support is forthcoming.

He said: “We have been prudent with our reserves and put money aside for a rainy day.

“What worries me is that we may need to go into the investment reserve, which may effect our spending on things like broadband and other projects.”

He added that he had written to Chancellor Rishi Sunak on further financial support for county councils.

Meanwhile, Geoff Webber, leader of the Liberal Democrats group on the authority, said the council had handled the unprecedented situation well.

He said: “It is extremely worrying.

“But I think the county council is handling this fairly well so far. I would find it difficult to criticise what it is doing.”

It comes as Harrogate Borough Council has unveiled a recovery plan to tackle its shortfall due to coronavirus.

The authority faces a £15 million deficit due to loss of income on such areas as leisure and car parking. Senior councillors will discuss its recovery plan at a cabinet meeting tomorrow.

No coronavirus deaths for nine days at Harrogate Hospital

Harrogate District Hospital has now gone nine days without reporting any deaths in patienta who tested positive for coronavirus, according to NHS figures today.

It means that the death toll at the district hospital remains at 80.

Nationally, a further 19 people who tested positive for coronavirus have died in hospitals. Of that number, four were in the North East and Yorkshire.

NHS England said the patients were aged between 60 and 96 years old. All had known underlying health conditions.

It takes the national death toll up to 28,672.

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.

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.

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.

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What is a section 114 notice?