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14
Feb
'No option' but maximum increase in council tax, says North Yorkshire Council leader
The leader of North Yorkshire Council has said the council has “little option” but to increase council tax after it faced cuts to funding and hikes in National Insurance.
Cllr Carl Les, the Conservative leader of the council, told councillors at a meeting this morning that a rise was required in order for the authority to balance its books.
Councillors are currently discussing the council’s budget at a meeting at County Hall in Northallerton.
Presenting the authority’s proposals, which include a 4.99% rise in council tax and £52 million in savings over the next three years, Cllr Les said the plan was the most difficult to draw up in 14 years.
He said:
Without doubt, this budget which is the first under a Labour government for 14 years is the most difficult one we have had to face.
The budget comes at a time when the government has removed the council's £14 million rural services grant and imposed a hike in National Insurance contributions, leaving council officers looking for millions of pounds in savings.
Addressing the council tax increase, Cllr Les said the authority had little option but to propose an increase in rates in light of the loss of funding.
Cllr Les said:
We have little option, I would say [to increase council tax]. We have no option. The government expects us to set it at that to maintain our core spending power. Not to increase it, just to maintain it.
The rise in council tax will means a Band D property household in Harrogate is likely to pay £2,380.51 in 2025/26 — a 6.4% increase on last year.
You can read our explainer on council tax bills and how this year's increase has been calculated here.
Councillors will vote on the council’s budget plan later today.
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