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24
Jan 2023
North Yorkshire Council will have enough reserves to ride out another national event such as soaring inflation, a senior council official has said.
Gary Fielding, corporate director for strategic resources at the authority, said the council has planned for a “one-off use” of its reserves to cover a £30 million shortfall for the upcoming financial year.
The council is facing pressures from inflation, rising cost of utilities and taking on structural deficits from other district councils.
Around £18 million from the districts will be taken on by North Yorkshire Council, plus a further £12 million for an in-year shortfall.
As part of the budget plans, the county council will dip into its reserves to cover the financial blackhole.
Despite the use of reserves, Mr Fielding said he felt the council would still be in a good position to withstand another national event, such as a pandemic or soaring inflation rates.
He said:
Part of the council's shortfall is down to energy costs and pay awards.
Energy bills for North Yorkshire’s current eight councils stood at about £6 million in 2021/22, rising to £15.5 million for the current financial year.
They are predicted to rise to £31 million for the forthcoming financial year from April 1.
Meanwhile, inflationary pressures, including pay awards, previously accounted for an increase of about £19 million a year across the eight North Yorkshire councils.
However, the dramatic rise in inflation to more than 10% a year has seen £66 million having to be allocated to next year’s proposed budget to cope with the increase.
The council is proposing the sum in order to meet costs for providing public services across the county.
It has also decided that council tax rates will be harmonised for the next two years – meaning taxpayers will pay the same sum across the county.
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