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17
Nov 2022
Government grants needed to help finances, says county council leader
More measures are needed to help North Yorkshire County Council’s finances despite support from government on council tax, says the leader of the authority.
Cllr Carl Les said the council needed grants from central government in order to help balance its books.
His comments come as Chancellor Jeremy Hunt is expected to announce an increase in the threshold in which authorities can increase council tax by without a local referendum.
Currently, the threshold is 2.99% - but Mr Hunt is expected to hike this to 5% in today's autumn statement.
Cllr Les told a meeting of the county council yesterday that while the measure would be welcomed, more support would be needed.
He said:
The move comes as county council leaders warned in June that the upcoming North Yorkshire Council could face a blackhole of £50 million in its finances.
Read more:
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Cllr Gareth Dadd, executive member for finance at the county council, said the situation was largely due to deficits it will inherit from district councils and high inflation.
The new unitary authority will replace Harrogate Borough Council, the county council and the remaining six districts.
Although he did not estimate the total structural deficits that the seven second tier authorities, including Harrogate Borough Council, would have accumulated by the time the new council is launched in April, he said it was believed it would be “substantial”.
It has been estimated the combined ongoing deficits of the district and borough councils could be in the region of £10 million.
In addition, ahead of the recent increasing inflation rate the county authority had been prepared to cover a deficit of up to £20 million.
With inflationary pressures, which include the council’s gas and electricity bill rising by some £3m, it is believed the total deficit could nearly reach £50 million.
Cllr Dadd said at the time:
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