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21
Jan
‘No alternative’ to council tax hike, says finance chief
North Yorkshire Council’s finance chief has said there is “no alternative” to increasing council tax amid a worsening financial outlook.
Cllr Gareth Dadd, executive councillor for resources, said the Conservative-run authority had been left was forced to make millions of pounds worth of savings because of its funding settlement with the government.
The council’s executive has proposed a 4.99% increase in council tax — 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.
Speaking at an executive meeting in Northallerton today, Cllr Dadd highlighted the government’s funding settlement for North Yorkshire, which saw the removal of a £14.3 million rural services delivery grant, as part of the reason for the council's current financial predicament.
He pointed out that the council would also be subject to an increase in National Insurance contributions, which will leave it with an estimated £8.2 million bill.
Cllr Dadd said he believed the loss of the rural grant coupled with a hike in National Insurance was a “purely ideological political attack” on rural areas.
As a result, he said the council was left with little option but to hike council tax by the maximum amount permitted without a referendum.
Cllr Dadd said:
I see no alternative at this stage to recommend to full council the 4.99% increase. That is, I know and understand, not welcomed by our residents but it is definitely the least worst of the choices available.
A final decision on the council tax hike will be made at a full council meeting in February.
Meanwhile, the council is also expected to make sweeping cuts over the next three years of £52 million to balance its books.
Some of the savings will be made through cuts to locality budgets and staffing reviews while it is hoped income-generating measures, such as the introduction of a lane rental scheme for roadworks, will generate revenue to offset the cuts. You can read our analysis on the proposals here.
This coming financial year, £27.5 million worth of savings will be made and the council intends to use its reserves to cover the £5 million shortfall in the 2025/26 budget.
However, Cllr Dadd pointed out that the savings needed to be delivered and the council would not be able to rely on its reserves in the coming years.
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