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Dec 2020

Last Updated: 18/12/2020

Politics

County council leaders warn of council tax rise to cover covid costs

by Suzannah Rogerson

| 18 Dec, 2020

The government is allowing local authorities to increase council tax to cover continuing covid costs. However county council leaders have expressed the importance finding new ways to cover costs to prevent taxpayers filling the gap.

North Yorkshire County Council leaders have said extra funding from the government isn't enough to cover covid costs so local residents may have to foot the bill.

The county council is set to receive a further £10.8 million to cover the costs of the pandemic next year. But having already spent an additional £80 million this year it is falling short.

The council tax covers services offered by district and county councils, such as social care and education. Because the pandemic has increased costs the government will allow councils to up their taxes next year.

County councils that deliver social care, like North Yorkshire, can now up their taxes by 3%.

County council leader Cllr Carl Les said:

"We predict there will be a shortfall of funding of £75m over the next three years.”

“We will also have to consider levels of council tax and balance the need to fund essential services through this critical period whilst also recognising the increased pressure that this will put on the tax payers of North Yorkshire.

"Government is going to have to confront the longer term funding solution for social care and local tax payers should not be expected to meet the gap."

The £10.8 million also provides an Income Guarantee Fund which will see the government compensate authorities for 75% of the reductions in council tax and business rates, due to covid.

All of the measures are part of the government's local government funding settlement for 2021/22.

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Cllr Gareth Dadd, deputy leader and executive member for finance added:

"We continue to feel aggrieved that residents in this county pay too much council tax particularly in comparison to London.

“We urgently need the Government to address the issue of fairer funding for rural and shire counties which face the largest funding gap and have been historically underfunded and for North Yorkshire’s residents who pay more council tax than their urban counterparts.”

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County council leaders warn of council tax rise to cover covid costs

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