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Oct 2022
New North Yorkshire Council launches consultation on funding priorities
A consultation is being launched today on what the new North Yorkshire Council's funding priorities should be, amid stark warnings about its economic situation.
North Yorkshire Council will come into existence on April 1 when the seven district councils, including Harrogate Borough Council, and North Yorkshire County Council, are abolished.
The postponement of the Chancellor’s autumn statement means the new local authority still doesn't know how much funding it will be allocated by national government.
In addition, the new authority is expected to start life by inheriting a £27 million deficit from the eight councils it is replacing. Rising inflation is also believed to have added an additional £70 million in costs.
Against this backdrop, county council leader Carl Les said the budget for the new authority will be the most challenging he has witnessed.
Cllr Les, who will become the leader of the new North Yorkshire Council, said:
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Cllr Les added that the restructuring of local government in North Yorkshire "could not have come at a more prescient time amid all the challenges we are facing" because merging eight councils and streamlining services "will be invaluable in ensuring that budgets can be balanced".
He believes the restructure could lead to savings of up to £70 million a year.
North Yorkshire County Council alone has had to make savings of £200 million since 2010 from an original net budget of £520 million, excluding funding for schools – equating to a 40 per cent reduction in spending.
North Yorkshire Council will serve the greatest geographical area of any local authority in the country, and it will have an overall spend of about £1.4 billion, including £343 million on schools.
The Let’s Talk Money conversation begins today and runs until December 23. Details are available here.
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