Business Breakfast: Harrogate chamber meeting to focus on devolution

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The effect of North Yorkshire devolution on Harrogate businesses will be in the spotlight at a meeting tonight.

Cllr Carl Les, leader of North Yorkshire County Council, and Richard Flinton, chief executive of the authority, will address business leaders at a Harrogate District Chamber of Commerce event.

The meeting will focus on how changes in local government from April 1 and the prospect of a directly elected mayor for the county will impact traders.

David Simister, chamber chief executive, said: 

“The creation of a new, single tier authority is the biggest change in local government since 1974, and we are delighted to have Cllr Les and Mr Flinton with us for our first meeting of 2023.

“We are keen to hear from them their vision for economic growth, and to know what the likely implications of greater devolution, and a directly elected mayor for North Yorkshire, will be for the district’s business community.

“Harrogate Convention Centre is one of the biggest economic drivers for the district. Currently owned and operated by Harrogate Borough Council, come April 1 it will then fall under the new authority.

“We have learned that a new strategic board is to be created to oversee the proposed £49m redevelopment project, and to assess the most appropriate operating model for the venue in the future. What we don’t know yet is the makeup of this body.”

The meeting will be held at Rudding Park Hotel and doors will open for networking from 5.30pm. Speakers will start at 6.15pm.

For information on how to attend the meeting, visit the chamber website here.

Housing developer creates North Yorkshire division

A housing developer has announced it has set up a North Yorkshire regional division as part of its business.

Avant Homes, which has approval for an 80-home development in Green Hammerton, launched the new division. It is expected to include 726 homes across five schemes.

It also includes projects in York and Leeds and is valued at £206 million.

Scott Varley, regional chairman of Avant Homes, said:

“Avant Homes North Yorkshire is an exciting expansion to our business which forms part of our ongoing nationwide strategic growth plan.

“Launching with three developments underway, and two others receiving planning approval, means we have a great deal of momentum in North Yorkshire allowing us to deliver much-needed, new-build homes for people in the region.”

Read more:

 

Just 3.5% responded to Harrogate town council consultation

Just 3.5% of homes sent information packs as part of a consultation on creating a Harrogate town council bothered to respond.

Letters were posted to each of the 35,431 households on the electoral register in the unparished area of Harrogate inviting them to have their say on the subjects. Only 1,250 did so.

A total of 75% favoured setting up a town council but the low response rate triggered concerns about the validity of the response.

Establishing a town council, wit yet to be determined powers, would create an additional annual council tax charge for the 35,431 homes affected.

A report to North Yorkshire County Council‘s Conservative-controlled executive on January 11 recommends it proceeds with moves to create a 19-person town council in April 2024. But it says:

“There was some concern raised about the apparent low response rate and whether this gave a sufficient democratic mandate to create new town councils.

“It is further noted that whilst the rates are low, it is not unusual with the background of similar reviews and the Association of Electoral Administrators consultant has advised that it is sufficient to proceed with the response rate at this level based on previous reviews.

“The decision being requested is whether to proceed with a further set of consultations on a preferred proposal and the response rate and details of that consultation can be considered before a final decision is made.”

No referendum

The county council is also likely to ignore a plea by Harrogate Borough Council to hold a referendum.

On September 21, the borough council unanimously passed a resolution:

“This council calls upon North Yorkshire County Council to hold a binding referendum of Harrogate town residents who could become constituents of a new Harrogate Town Council to determine whether such a council should be formed.”

The resolution also said information should be made available prior to the referendum as to which services a new town council could provide, together with an indicative level of investment required to give “democratic legitimacy” to the process.

But the report to the county council quotes leader Carl Les saying:

“it should be noted that it is not legally possible to hold a binding referendum to create a town council as the legislation does not provide for this and the council cannot fetter its discretion in this way.”

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Cllr Les adds the consultation, which will now proceed to a second stage, should merely “take into account” the views of the borough council. The report added:

“It is not clear that a referendum would elicit a different response. There is no requirement under the law for a referendum to form part of a community governance review to provide democratic legitimacy to the outcome.

“The additional cost of a referendum may not be justified if the outcome is likely to be the same as writing to all households.”

North Yorkshire Council warns of cuts amid £30 million shortfall

The new North Yorkshire Council is set to face a £30 million shortfall in its first year, despite increased funding from government.

Michael Gove, Levelling Up Secretary, unveiled £60 billion worth of funding for councils across the UK on Monday — a 9% increase on last year.

The council is set to receive an additional £22 million from government as part of the announcement.

However, soaring inflation and the impact of the covid pandemic is still set to leave a blackhole in the authority’s finances.

A council press release said the shortfall would be met “by the one-off use of reserves as well as some savings”.

Cllr Carl Les, Conservative leader of the council, said:

“We are faced with the biggest financial pressures which I have witnessed in all of the time I have been a member of the county council since I was elected more than 20 years ago.

“While the extra funding from the government is extremely welcome, it will still not be enough to alleviate the extraordinary challenges which we do need to tackle in the coming financial year.

“The pressure on budgets will be felt across all of the directorates which provide key services for the hundreds of thousands of people who live and work in North Yorkshire.

“However, we are committed to ensuring that we can continue to provide the best possible services to the public in the face of these immense financial challenges.”

Read more:

The new council, which comes into force on April 1, is set to inherit £18 million in deficits from the seven district authorities which will be abolished, including Harrogate Borough Council.

However, increased costs from inflation and growing demand on council services such as adult social care is expected to add an additional £50 million.

Authority officials estimated that, once government funding, council tax and savings are factored in, the council will have a shortfall of around £30 million.

In order to plug that gap, it is expected that the council will have to dip into its reserves and find savings from streamlined services.

A budget for the upcoming North Yorkshire Council is expected to be set in February.

North Yorkshire devolution consultation ends today

A consultation over a planned £540 million devolution deal for North Yorkshire is set to end today.

In August, county council leaders agreed a proposed deal with ministers to devolve more powers, including an elected mayor, to North Yorkshire and York.

The deal would see £18 million-worth of funding each year devolved to the county over 30 years and pave the way for a mayor and combined authority in 2024.

A consultation was launched in October to seek views from the public, businesses and charity organisations.

The survey will close today.

Cllr Carl Les, leader of North Yorkshire County Council, said: 

“We really need the public to come forward and give us their views on what is important to them and how devolution can benefit communities and businesses across York and North Yorkshire.

“The chance to secure these decision-making powers and millions of pounds in funding from the government is set to prove a life-changing opportunity for more than 800,000 people who live and work in York and North Yorkshire.

“Devolution will give local leaders the chance to tackle some of the most pressing issues facing people in York and North Yorkshire – whether that be providing more affordable housing, improving skills and education for better job opportunities, boosting transport infrastructure or tackling the climate crisis.”

You can have your say on the deal here.

What is in the deal?

As part of the devolution deal, a mayoral combined authority would be formed with a directly-elected mayor by May 2024.

It would mirror similar arrangements in the Tees Valley, where Conservative mayor Ben Houchen oversees the combined authority.

While the planned North Yorkshire deal brings £540 million worth of investment funding, it is lower than the original £750 million requested by local leaders.

Read More:

However, more power over skills and transport will be devolved.

It will see whoever is elected mayor and the new combined authority have control over the adult education budget and the ability to draw up its own transport strategy.

Control over bus franchising has also been granted to the county and the power to set up Mayoral Development Corporations, which have the power to buy land for housing or employment to regenerate a defined area.

Council defends bid to create doomed investment zones in Harrogate district

The leader of North Yorkshire County Council has defended its decision to support the government’s doomed investment zones.

The council submitted expressions of interest to create 11 zones, including three in the Harrogate district at junction 47 of the A1 near Knaresborough, business park Potter Space Ripon at junction 50 of the A1 and Harrogate Convention Centre.

The zones, which were a key policy under former Prime Minister Liz Truss’ administration, were supposed to benefit from tax incentives and liberalised planning regulations.

But some environmental groups expressed concerns about their potential impact on nature and the landscape.

Chancellor Jeremy Hunt announced in his autumn statement the scheme would be focused towards research and the council’s proposals would no longer be taken forward.

Cllr Carl Les, leader of North Yorkshire County Council, said the authority remained “committed” to economic growth in the county despite the decision.

He said:

“We understood when making our submission that the investment zones proposal was at a very early stage and that there were no guarantees.

“However, we are committed to seeking opportunities to support sustainable growth whenever possible, so we believed there was value in presenting an expression of interest relating to suitable sites around North Yorkshire. These sites were selected following discussions with colleagues in district and borough councils.

“All the sites put forward for consideration are locations that have already been earmarked for commercial development to support business growth and job creation. While the proposed benefits of investment zones may have been attractive to new businesses, we will continue to work with our partners to support economic growth across the county.

“In Harrogate, the convention centre is the subject of a bid to the government’s Levelling-Up Fund. We hope to learn the outcome of this bid shortly.”

Read more:

 

Uncertainty over Harrogate district investment zones after government ‘refocuses’ scheme

There is uncertainty over the future of planned investment zones in the Harrogate district after the government announced it will “change its approach” on the policy.

Three sites were earmarked in the district for the zones, which were a key policy under former Prime Minister Liz Truss’s administration.

The sites include junction 47 of the A1 near Knaresborough, business park Potter Space Ripon at junction 50 of the A1, and Harrogate Convention Centre.

The government said previously that the zones, which would have received liberalised planning laws and tax incentives for businesses, would support economic growth.

However, Chancellor Jeremy Hunt yesterday announced in his autumn statement that the scheme would be focused towards research.

He said:

“I will also change our approach to investment zones which will now focus on leveraging our research strengths, to help build clusters for our new growth industries.

“My right honourable friend the Levelling Up Secretary will work with mayors, devolved administrations and local partners to achieve that with the first decisions announced ahead of the spring budget.”

According to Treasury documents, the government intends to “refocus the investment zones programme” and use it to “catalyse a limited number of the highest potential knowledge-intensive growth clusters”.

The document added that, as a result, the expressions of interests submitted by councils “will therefore not be taken forward”.

The news comes after Cllr Carl Les, leader of North Yorkshire County Council, admitted on Wednesday that he did not expect the zones to progress.

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The county council was named as one of 38 local authorities in talks with the government over creating investment zones back in September.

The authority then earmarked 12 commercial sites as part of an expression of interest for the scheme.

However, Cllr Les told councillors at a meeting on Wednesday that he did not expect the initiative to go any further.

He said:

“I have to say I don’t think that investment zones are going to proceed.

“The Secretary of State is reviewing them and they will not go forward.”

Government grants needed to help finances, says county council leader

More measures are needed to help North Yorkshire County Council’s finances despite support from government on council tax, says the leader of the authority.

Cllr Carl Les said the council needed grants from central government in order to help balance its books.

His comments come as Chancellor Jeremy Hunt is expected to announce an increase in the threshold in which authorities can increase council tax by without a local referendum.

Currently, the threshold is 2.99% – but Mr Hunt is expected to hike this to 5% in today’s autumn statement.

Cllr Les told a meeting of the county council yesterday that while the measure would be welcomed, more support would be needed.

He said:

“It will give us flexibility, but I don’t think that it’s the only leaver that we need to pull.

“Government grants has got to be part of that answer as well.”

The move comes as county council leaders warned in June that the upcoming North Yorkshire Council could face a blackhole of £50 million in its finances.

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Cllr Gareth Dadd, executive member for finance at the county council, said the situation was largely due to deficits it will inherit from district councils and high inflation.

The new unitary authority will replace Harrogate Borough Council, the county council and the remaining six districts.

Although he did not estimate the total structural deficits that the seven second tier authorities, including Harrogate Borough Council, would have accumulated by the time the new council is launched in April, he said it was believed it would be “substantial”.

It has been estimated the combined ongoing deficits of the district and borough councils could be in the region of £10 million.

In addition, ahead of the recent increasing inflation rate the county authority had been prepared to cover a deficit of up to £20 million.

With inflationary pressures, which include the council’s gas and electricity bill rising by some £3m, it is believed the total deficit could nearly reach £50 million.

Cllr Dadd said at the time:

“That is a frightening figure, but nonetheless, I think we are right to raise that at this stage.”

New North Yorkshire Council launches consultation on funding priorities

A consultation is being launched today on what the new North Yorkshire Council’s funding priorities should be, amid stark warnings about its economic situation.

North Yorkshire Council will come into existence on April 1 when the seven district councils, including Harrogate Borough Council, and North Yorkshire County Council, are abolished.

The postponement of the Chancellor’s autumn statement means the new local authority still doesn’t know how much funding it will be allocated by national government.

In addition, the new authority is expected to start life by inheriting a £27 million deficit from the eight councils it is replacing. Rising inflation is also believed to have added an additional £70 million in costs.

Against this backdrop, county council leader Carl Les said the budget for the new authority will be the most challenging he has witnessed.

Cllr Les, who will become the leader of the new North Yorkshire Council, said:

“These challenges for the forthcoming financial year are the greatest I have ever known, caused by a succession of issues that, taken in isolation, would present significant problems to overcome in themselves.

“We have launched the consultation to give the public the chance to highlight what they believe are the financial priorities which the new North Yorkshire Council should be focused on, and it is so important that we hear those views to help us form the budget for the authority.”

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Cllr Les added that the restructuring of local government in North Yorkshire “could not have come at a more prescient time amid all the challenges we are facing” because merging eight councils and streamlining services “will be invaluable in ensuring that budgets can be balanced”.

He believes the restructure could lead to savings of up to £70 million a year.

North Yorkshire County Council alone has had to make savings of £200 million since 2010 from an original net budget of £520 million, excluding funding for schools – equating to a 40 per cent reduction in spending.

North Yorkshire Council will serve the greatest geographical area of any local authority in the country, and it will have an overall spend of about £1.4 billion, including £343 million on schools.

The Let’s Talk Money conversation begins today and runs until December 23. Details are available here.

 

Working group set up to steer future of Harrogate Convention Centre

A working group is being set up to steer the future of Harrogate Convention Centre as the venue approaches a crucial time of change in its 40-year history.

Senior officials and councillors from Harrogate Borough Council and North Yorkshire County Council will come together to discuss the convention centre’s £49 million redevelopment plan and how it could be funded, as well as how the venue should be run in the future.

It has previously been suggested that a limited company could be set up to take over the day-to-day business of the venue which is set to come under the ownership of the new North Yorkshire Council in April.

County council leader Carl Les said this would be one option that is explored by the working group as he also acknowledged there could be risks involved in the £49 million redevelopment plan. he told the Local Democracy Reporting Service:

“We will look at everything connected with the convention centre.”

“I’m sure that there are some risks involved and that is why we want a working group.

“We are very conscious that this has been a Harrogate Borough Council project until now and because it is going to come to us in a short space of time we want to better understand what options there may be going forward.”

Cllr Les’ comments come after the county council’s executive yesterday gave final approval for the spending of £3.3 million of taxpayer’s money on final designs for the redevelopment plan.

Prior to this, more than £1.5 million has already been spent on other design, business case and feasibility works.

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A final decision on the redevelopment plan is expected next summer, but there are lingering questions over how it could be funded after cash for the convention centre was left out of North Yorkshire’s £540 million devolution deal, much to the dismay of local leaders.

A separate bid for £20 million from the government’s levelling up fund has been made for the venue, however, Harrogate is ranked as a low priority area in the fund.

Paula Lorimer

Paula Lorimer

Paula Lorimer, director of Harrogate Convention Centre, said the levelling up funding would be a “game changer” for the venue if awarded later this year as she also thanked the county council for its support in progressing the final designs. She said:

“This is a very important step for us and both parties agree this is something we need to work together on.

“They have listened to everything we have put forward and asked all the right questions, and I’m very much looking forward to working with them.”

The launch of the working group comes as the convention centre is facing a new threat on its doorstep in the form of Leeds City Council’s proposals to build a new conference venue at the site of the former Yorkshire Bank HQ.

Threat from Leeds

A decision on these plans was previously delayed after a wave of objections from Harrogate Convention Centre and the district’s business leaders who fear the plans could drive trade away from Harrogate.

And Ms Lorimer said she is now preparing to make the same objections again when the proposals return to a city council meeting on 3 November.

She said “constructive dialogue” had been held with Leeds officials, but her concerns over the size of the city’s proposed venue and its impact on Harrogate Convention Centre remained unchanged. Ms Lorimer said:

“When we were first spoken to about this venue it was 2,000 square metres – we didn’t object and we told Leeds City Council that. Then suddenly it became 10,000 square metres.

“We continue to seek reassurance that the scheme will go back to the original size, but they are going to push ahead.”

Consultation launched over £540m North Yorkshire devolution deal

People across the Harrogate district will be asked from today for their views on a historic £540 million devolution deal for North Yorkshire.

In August, county council leaders agreed the long-awaited deal with ministers to devolve more powers, including an elected mayor, to North Yorkshire and York.

The deal will see £18 million year worth of funding devolved to the county over 30 years.

Now, as part of the process to bring more powers to North Yorkshire, the public, businesses and charity organisations will be asked for their thoughts on the deal.

Cllr Carl Les, leader of North Yorkshire County Council, said: 

“We really need the public to come forward and give us their views on what is important to them and how devolution can benefit communities and businesses across York and North Yorkshire.

“The chance to secure these decision-making powers and millions of pounds in funding from the government is set to prove a life-changing opportunity for more than 800,000 people who live and work in York and North Yorkshire.

“Devolution will give local leaders the chance to tackle some of the most pressing issues facing people in York and North Yorkshire – whether that be providing more affordable housing, improving skills and education for better job opportunities, boosting transport infrastructure or tackling the climate crisis.”

Pictured: Cllr Carl Les, leader of North Yorkshire County Council, Greg Clark MP and Cllr Keith Aspden, leader of City of York Council sign the document.

Pictured: Cllr Carl Les, leader of North Yorkshire County Council, Greg Clark MP and Cllr Keith Aspden, leader of City of York Council sign the document.

Meanwhile, Helen Simpson, chair of the York and North Yorkshire Local Enterprise Partnership, said: 

“This is a historic moment for York and North Yorkshire and creates the opportunity to deliver long-term investment to support business growth.

“I’d like to invite business leaders across the region to contribute to this consultation.”

Consultation on the deal will run until Friday, December 16. People can have their say at the York and North Yorkshire Devolution website here.

What is in the deal?

As part of the devolution deal, a mayoral combined authority would be formed with a directly-elected mayor by May 2024.

It would mirror similar arrangements in the Tees Valley, where Conservative mayor Ben Houchen oversees the combined authority.

Read More:

While the planned North Yorkshire deal brings £540 million worth of investment funding, it is lower than the original £750 million requested by local leaders.

However, more power over skills and transport will be devolved.

It will see whoever is elected mayor and the new combined authority have control over the adult education budget and the ability to draw up its own transport strategy.

Control over bus franchising has also been granted to the county and the power to set up Mayoral Development Corporations, which have the power to buy land for housing or employment to regenerate a defined area.

Much of the deal echoes what was given to Tees Valley in 2015, where mayor Houchen has since exercised his economic development powers to buy Teesside International Airport and Redcar Steelworks.