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01
Jan 2021
Harrogate council proposes council tax hike
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:
- County council leaders warn of council tax rise to cover covid costs
- £4.1 million spent on PPE in North Yorkshire
- Scale of Harrogate council’s coronavirus deficit unclear
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:
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.
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