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22

Jan 2023

Last Updated: 20/01/2023
Politics
Politics

Explained: North Yorkshire Council's plan for council tax

by Calvin Robinson

| 22 Jan, 2023
Comment

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countycouncilhq
North Yorkshire County Council's offices in Northallerton.

North Yorkshire Council looks set to propose a council tax hike as part of its first budget.

The authority, which will take over Harrogate Borough Council and North Yorkshire County Council, is set to recommend a bill of £1,759.96.

However, the total bill will also include precepts for fire and police services which will be decided next month.

Here is all you need to know about your council tax this coming year.

What will my council tax be?


For 2023/24, taxpayers will no longer pay council tax to Harrogate Borough Council and North Yorkshire County Council.

Instead, tax will be paid solely to the new North Yorkshire Council.

As part of its first budget, authority officials are proposing a band D rate of £1,759.96 for the year - an increase on last year by 4.99%.

That does not include the precepts for fire, police and parish councils which will be decided separately by those organisations.

Why has the council chosen to increase council tax?


The council is proposing the sum in order to meet costs for providing public services across the county.

It has also decided that council tax rates will be harmonised for the next two years - meaning taxpayers will pay the same sum across the county.




Read more:



  • Council freezes Ripon parish precept for third year running

  • Levelling up council tax charges over two years is ‘best compromise’






The council has calculated that council tax for the average band D property in Harrogate would normally be valued at £1,783.35.

But, the harmonised average for the county - which includes a 4.99% hike - will be set at £1,759.96.

The council also says it has to make income in order to tackle a £30 million blackhole caused by inflation and spiralling costs.

What has the council said about the proposal?


Despite an increase in funding from the government, the new authority is set to start the next financial year from April with a predicted shortfall of more than £30 million in its budget.

The council is set to receive an additional £22 million from government as part of the announcement.

However, soaring inflation and the impact of the covid pandemic is still set to leave a blackhole in the authority’s finances.

A council press release said the shortfall would be met “by the one-off use of reserves as well as some savings”.

Senior councillors will meet to discuss the council’s first budget, including council tax, on January 24.

Conservative Cllr Carl Les, who will assume the leadership of North Yorkshire Council from April, said: 

“We are facing the greatest ever financial challenges in North Yorkshire, which means we have a huge task in ensuring that services can be delivered effectively and efficiently for the public.
“However, without the opportunities presented with the launch of the new council, the situation would be a great deal worse, and it is vital that we take full advantage of these opportunities.
“We have the chance to make millions of pounds in savings by reorganising the way services are delivered, meaning that we get the most out of every pound of taxpayers’ money in North Yorkshire.”