The Conservative leader of North Yorkshire Council has said it must prepare to make cuts after this week's “hugely disappointing” local government funding settlement.

Cllr Carl Les said the council was previously looking to make efficiency savings to cover a £40 million to £45 million shortfall in 2024/25.

But he said Tuesday's provisional settlement from the Treasury had increased this shortfall by £6.5 million, which will have implications when the budget is finalised in February.

Cllr Les told the Stray Ferret: 

Legally, the council cannot increase its council tax charge by more than 4.99% without calling a referendum.

Asked what impact the funding settlement will have on next year’s precept, Cllr Les said: “We will be thinking of going for the maximum increase, but we can’t say that for definite until we have seem the numbers.”

The settlement contained some good news for North Yorkshire, including an extra £5 million grant to cover the rising cost of National Insurance contributions.

But Cllr Les says they were more than offset by reductions in other areas. He said the single biggest blow was the loss of the £14.3 million rural services delivery grant. 

North Yorkshire is the largest county in the country and received more from this grant than any other local authority.

Cllr Les added: 

Ministers say the £69 billion settlement for councils across the country is the equivalent of a real-terms increase of 3.5 per cent from 2024/25.

It includes an extra £200 million for social care costs and a £600 million recovery grant for areas most in need.