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14
Jan
Maximum council tax increase proposed
North Yorkshire Council has proposed increasing council tax by 4.99% — the maximum amount permitted without a referendum.
It means the average Band D property is likely to see its bill increase by £92.18 from April to £1,939 — plus whatever it is charged for police and fire services and by its local parish council.
The Conservative-run council has blamed Labour, saying the government has awarded it “the fourth worst core funding settlement in the country” behind Herefordshire, Rutland and Shropshire.
It said the settlement had left it with a £5 million budget deficit and therefore it would propose the maximum council tax increase when its executive meets next week.
Council leader Cllr Carl Les, said:
We are acutely aware that all of our communities are feeling the impact of the cost of living, and we certainly do not want to compound those pressures.
However, we are now faced with a council tax rise of 4.99% to help to counter the multi-million pound shortfall which we are facing in the council’s budget for the next financial year. If we don’t push ahead with the 4.99% increase, the financial deficit will be even worse.
The government has pledged to conduct a review of local government funding, and I would urge ministers to ensure that there is a fair deal for all local authorities, whether they are responsible for large rural areas such as ourselves or towns and cities.
Rural woe
The council accused the government of penalising rural councils by reducing their funding in favour of more densely populated local authorities.
North Yorkshire Council used to receive the greatest share nationally of the rural services delivery grant with £14.3 million each year.
The £110 million package of funding for councils covering rural parts of England recognised the extra costs they face in areas such as home to school transport.
Chancellor Rachel Reeves' October Budget announcement that the rate employers pay in National Insurance contributions will rise from 13.8% to 15% on workers’ earnings has also left the council with a £7 million shortfall, even with an estimated £5 million government grant to compensate in this area, said the council.
Deputy leader, Cllr Gareth Dadd, whose responsibilities include the authority’s finances, said it could have to dip into its reserves, adding: “We are faced with some very tough choices to try to balance our books."
Final bills
The council accounts for by far the largest percentage of council tax bills, which also include precepts for police and fire as well as town and parish councils.
Labor mayor Davcid Skaith has proposed increasing the fire service precept by 30%.
The executive will consider the financial plan for the next financial year before the proposed budget will then be discussed at a full council meeting next month before it due to be adopted.
The council’s proposed budget for 2025/26 would see a rise of council tax of 4.99%, including a 2% precept for adult social care.
Following the launch of North Yorkshire Council in April 2023, a plan has been drawn up to achieve more than £52 million in further savings – although this has still left a predicted £34 million annual deficit by March 31, 2028.
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