After months of delay and debate, the groundwork for the new Harrogate Town Council has finally been set.

Taxpayers across the Harrogate town area will pay an additional £12.73 on top of their council tax bills as of next year.

The move, which was backed by councillors on Monday, is part of the town council’s first budget and paves the way for its establishment.

But the measure did not come without opposition, which suggests a divide over how exactly the new authority should be set up.

Paying for a town council

On Monday evening as the winter night drew in at 4pm, councillors met at Harrogate’s Civic Centre to discuss recommendations for the town council’s first budget.

The occasion was a momentous step for the town, which has never had a town council.

Scarborough and Harrogate are the two unparished areas left in North Yorkshire.

Much of the costs involved in setting up the authority — which you can read in the table below — were agreed without much discussion.

A report before councillors also detailed the council tax charge involved in setting up the new council.

A total of 28,427 households in the new Harrogate parish will have to share the cost.

The rate is based on the average band D property and ranged between a lower charge of £10.98 and a higher figure of £26.81.

How much the precept went up by coincided with how much contingency costs the council would get to help with unexpected finances.

The figure is designed to give the authority "reasonable headroom" to mitigate against operational and financial risks, a report said.

For example, a £50,000 contingency fund would mean a £10.98 council tax charge. The highest proposed was a £500,000 fund which would lead to a £26.81 fee.

All of these options were before councillors on Monday evening.

The decision to opt for a £12.73 charge — which was made by four votes to three — will put Harrogate among the cheapest in the county.

Nearby Knaresborough Town Council, for example, charges £23.92 and Ripon City Council levies £76.41 on its ratepayers.

However, it does not mean that Harrogate will remain cheap for long. Particularly when councillors are keen to take on more powers for the town council — which will cost money.

‘This is taxpayers money’

Councillors were told that the budget was fundamentally geared towards setting up the authority so that politicians elected to it can decide what they want it to do.

But, the council has yet to be set up and, regardless of what powers it wants, there is still a charge to be levied on ratepayers.

How much this should be proved to be the sticking point between the Conservatives and Liberal Democrats in Harrogate.

Conservative Cllr Michael Harrison, who also sits on the Tory-run executive at North Yorkshire Council, said there was a responsibility for the tax to be as low as possible.

Cllr Harrison, who previously expressed reservations over levying rates on taxpayers without knowing the functions of the town council, reiterated his concern this week.

He said:

Cllr Harrison suggested the lowest possible contingency figure, which was £50,000, which ultimately meant the lowest council tax charge. However, he also recommended that the town council take up an offer from North Yorkshire Council for a loan.

The unitary council said it would be willing to give the newly formed town council £100,000 in order for the contingency cost to be as low as possible.

However, the loan would be required to be paid back with interest in subsequent years — which fell flat with the Liberal Democrats.

Cllr Chris Aldred, charter mayor for Harrogate and Liberal Democrat councillor, pointed out that this would mean that such costs would be passed onto taxpayers.

He said:

What does it mean for Harrogate?

Ultimately, the cost of the town council will rest with taxpayers in Harrogate.

Come next year, when bills are put through letter boxes, people will open them up to see an additional charge on their council tax.

The precept for the town council goes on top of the rate paid for North Yorkshire Council services and the police and fire services.

The trade-off is that newly formed authority will in future have additional powers — though, as has been pointed out by Cllr Harrison, nobody knows what those are yet.

But some suggestions have been put forward, such as running Harrogate’s own market or offering grants to local community initiatives.

Much of those have been suggested by the Liberal Democrats, who currently have the most councillors in Harrogate and will hope that continues come the town council elections in 2025.

Currently, the Lib Dems hold sway on both the Harrogate area constituency committee and the charter trustees.

Come May 2025, when the town council elections are held, they will hope to consolidate that local power while the Tories will look to mount a fightback.