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Dec 2021

Last Updated: 17/12/2021

Politics

Council warns of 'enormous financial pressures' despite government funding

by Calvin Robinson

| 19 Dec, 2021

The government has announced funding for local councils for next year. However, North Yorkshire County Council says it will still need to find £19 million in savings to balance its books.

North Yorkshire County Council

North Yorkshire County Council officials have warned that it faces “enormous financial pressures” despite receiving £10 million in additional funding from government.

The Department for Levelling Up, Housing and Communities, announced that the authority will be granted £26 million in grants for the coming year.

Council officials said the funding was more than forecast due to an increase in funding from the government.

The fund includes core spending grants and funding for adult social care.

However, county council bosses have warned that the authority will still have to find £19 million in savings.

The funding includes:

£1.6 million for new homes bonus

£20 million social care grant

£4.7 million for core spending

Ministers said the settlement reflected the extra pressures on local councils, particularly in social care and the covid pandemic.

But Cllr Gareth Dadd, executive county councillor for finance, said the money would already be “accounted for” at this “turbulent time”.

He said:

“The additional money is very welcome. However, this continues to be a turbulent time. We remain in the midst of the pandemic and are responding to the increased pressures this puts on the county’s communities and economy, as well as our own resources.

“At the same time, long-term challenges continue to grow, as we deal with massive pressures in the social care markets and unprecedented levels of inflation and national insurance contributions. This means that as welcome as the extra money is, it is already more than accounted for.”

The move comes as the county council is consulting residents in North Yorkshire on its upcoming budget.

The authority will have the means to be able to hike council tax by up to 4.5% this year, under government rules.

Those in a band D property in North Yorkshire currently pay £1,411.05 in the county council's share of council tax.

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Cllr Carl Les, leader of the council, said reform was needed on funding for rural authorities as residents “already pay too much council tax”.

He said:

“Putting up council tax is never an easy option for this authority. We have always striven to be moderate in our increases.

“In considering the level of council tax, we must understand and balance the hardship families are currently facing and the added pressure a council tax increase may bring with the need to fund essential services to support the most vulnerable in our communities through this critical period.

“We continue to feel that residents in North Yorkshire pay too much council tax, particularly in comparison to London, and urge the Government to press on with funding reform to create a fairer solution for rural counties.”

The county council is expected to outline its budget plan, including council tax, in the new year.

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Council warns of 'enormous financial pressures' despite government funding

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