This town in lawless
Harrogate council proposes council tax hike
by
Last updated Jan 20, 2021
Harrogate Borough Council offices at Knapping Mount.
Harrogate Borough Council has proposed an increase in council tax of £5.

Harrogate Borough Council is to propose a £5 increase in council tax next year — the maximum amount permitted.

The proposed £5 hike would see the average band D property bill increase from £245.92 to £250.92.

The local authority, which is planning its budget for 2021/22, generated £15.6 million in council tax in the current financial year.

If the £5 increase goes ahead, it will receive an additional £392,000, bringing the total to £16 million.

The council also plans to make £1.14 million spending cuts to balance its books.

This would largely come from a review of its park and environmental services department and by setting up a new company to run leisure facilities.

The £5 increase represents the most a district council can propose for council tax — a 2% increase or £5, whichever is highest.

Anything further would require a local referendum.


Read more:


In a report due before senior councillors this week, Paul Foster, head of finance at the borough council, said the authority faced “unprecedented financial determinant” due to the pandemic.

He said:

“The financial implications are challenging to estimate with certainty as there continue to be a number of unknowns.

“From how long, and to what extent, national and local restrictions will continue to what measures will remain to combat the spread of virus, to what recovery will look like, such as how our customers will behave over time.”

Mr Foster added the council has “not been immune” to funding cuts from central government and has seen its general grant allocation reduced by £8.2 million since 2010.

The budget proposal is set to be discussed at a cabinet meeting on January 6 before going before full council at a later date.

£27 county council rise

It comes as North Yorkshire County Council and North Yorkshire Police, Fire and Crime Commissioner are expected to outline plans for their share of council tax this month.

Last month, county council officials said they were considering a 1.99% increase — equivalent to a £27 rise.

The move comes amid pressures from coronavirus and cuts in funding from central government.

The county council had anticipated a funding gap of £186 million by next year due to austerity. However, it has since found £173 million in savings.

Now the authority needs to find £103 million over the next three years to cover loss of central government funding.