Revealed: the Harrogate areas set for new council tax charge

Large parts of Harrogate, including Bilton, Starbeck and Jennyfields as well as central areas, look set to be hit by a new council tax charge.

North Yorkshire County Council said last week it would press ahead with plans to create a Harrogate town council after the results of an initial consultation revealed 75% in favour of the idea.

Areas covered by the new council, which will have 19 councillors, will face an additional charge on their council tax bills to pay for its services.

The sum is not yet known but Ripon City Council and Knaresborough Town Council currently charge £70.77 and £24.27 respectively for a band D property.

The areas facing new charges are:

A report on the consultation gave short shrift to calls by three respondents for Starbeck to get its own parish council. It said:

“No justification or detail was provided.

“It is considered that due to the small size of the area considered to be Starbeck, less than 6,000 electors, any parish council would not be in a position to provide services or amenities on the scale that could be provided by a much larger neighbouring Harrogate town council, potentially leading the the residents of Starbeck missing out on the opportunities to be provided by a larger town council.”

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How is council tax calculated?

Council tax bills in the Harrogate district are calculated by adding the sums charged for services by North Yorkshire County Council, Harrogate Borough Council, North Yorkshire Police and North Yorkshire Fire and Rescue Service, plus any parish precepts.

Harrogate residents do not currently pay a parish precept because it does not have a town council.

This year’s Harrogate district Band D bill, minus any parish precept charges, rose by £72 to £2,079.59. This is how it was broken down.

The abolition of Harrogate Borough Council and North Yorkshire County Council on April 1 means the charge for their services will no longer exist.

However, the new North Yorkshire Council, which will replace them, has indicated it will charge Harrogate district households £23.47 less than the amount currently paid to the two councils.

The new Harrogate town council charge could mean devolution, hailed as a cost-saving exercise, could actually result in higher council tax bills.

However, a Harrogate town council is unlikely to be formed until May 2024 so any precept it charges will not feature in the calculations for council tax bills in 2022/23, which will be finalised in the new year.

Harrogate town residents have been spared a parish precept because they do not have their own town council, unlike other towns in the Harrogate district and the city of Ripon.

So the abolition of Harrogate Borough Council and likely creation of a Harrogate town council will affect them more than residents in places such as Ripon, Knaresborough, Boroughbridge, Pateley Bridge and Masham, which already pay a parish precept.

In a report to the Conservative-controlled North Yorkshire County Council’s executive, Barry Khan, assistant chief executive (legal and democratic services) has recommended opening a second, eight-week consultation on creating a Harrogate town council on February 20.

The executive will meet on January 10 to decide whether to accept the recommendation.

 

 

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.”

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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.

Stray Ferret Christmas Appeal: ‘I shouldn’t need this – but it’s a lifesaver’

This year’s Stray Ferret Christmas Appeal is for Resurrected Bites in Harrogate and Knaresborough. Today, Vicky finds out how a series of life events left one woman unable to afford food.

Please give generously to support local people who are struggling this Christmas. They need your help. 

 

“I feel guilty every time I go to Resurrected Bites. I keep saying I shouldn’t be here. I work full-time for the NHS. But it’s a life-saver.” 

Lara Rundle is a single mum to four grown-up children. 

For the last three years, she has lived in Burton Leonard, having moved up from the south-east following the death of her father. 

It was the first in a string of events that left her struggling to cover all her outgoings – even before she tried to buy food. 

“I had lost my dad and he was helping me pay my mortgage. Even a rabbit hutch in the south-east is mad money.  

“When he passed, he said to me and my brother that he had left the money to clear our mortgages. We found out after that his partner had accidentally lost the will and she took everything.  

“My house was on the point of being repossessed and I had a breakdown.  

“I had only been in Harrogate twice in my life and had a midlife crisis and said I was moving to Yorkshire.” 

With some savings in the bank and a small, fixed-rate mortgage, Lara had enough money to get by. However, a reaction to the covid vaccination left her leaving hospital treatment and unable to work for some time.  

As she recovered, Lara received some devastating news: 

“The second of my four children was in a car accident in Sussex. She broke her back in two places.  

“Her friend was killed, and another friend was in intensive care.” 

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Lara spent many months travelling up and down the country to visit her daughter, eating into her dwindling savings. 

She began to look into ways to cut her costs and find some money. 

“I’ve got this big, flash car that I can’t afford, but because it keeps breaking down, the garage won’t take it back. It’s in negative equity. If it wasn’t for that, I would probably be OK. 

“I’ve got equity in the house – I’ve got a very small mortgage, but the building society won’t let me release any equity because they said I don’t earn enough to repay it.” 

Lara had been in receipt of some benefits, but that changed when her youngest daughter went away to university. She was given an annual pay rise of £90 a month, which meant she was no longer entitled to the £180 a month she had been receiving in Universal Credit. 

At £90 a month worse off than before, she then received a letter saying her council tax was going to increase because the valuations office believed her house should be in a higher band. 

Lara simply didn’t know what to do. 

A volunteer stacks the shelves at the Resurrected Bites community groceryShelves full of products at Resurrected Bites’ community grocery

She was helped by her GP practice, which put her in touch with Resurrected Bites.

She became a customer of the community grocery at Gracious Street in Knaresborough, paying £3 for a shop worth many times that amount. She said:

“When my kids were small, I was on my own with four kids and we did have to use a foodbank.  

“Now they’re grown up, I never thought I would be in this situation again. 

“I had never heard of Resurrected BItes before.  

“You feel you are paying something, so it’s not a hand-out. It’s fresh fruit and vegetables. They’re the kind of things I can’t afford to buy.

“If I go to the supermarket, the only thing I have to buy is cheese and butter, sometimes meat. There’s stuff there I could never have afforded to buy even if I wasn’t in this situation.” 

With her daughter well on the road to recovery and the support of Resurrected Bites when she needs it, as well as welcoming neighbours in her new home, Lara feels much more positive about the future. 

She said: 

“It has made such a massive difference. I know I don’t have to worry.

“If you have an extra fiver you put it on your account so you don’t have to worry about paying next time.

“I just can’t thank them enough. They’re angels. The service is a life-saver.”

Nobody in the Harrogate district should go hungry this Christmas. 

It costs £300 to run the community grocery for one day. Please help to keep it open for everyone who relies on it. 

Click here to contribute now. 

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.”

North Yorkshire to tackle housing crisis with second homes charge

North Yorkshire is set to become the one of the country’s first areas to adopt a mandatory 100% council tax premium for second homes as part of efforts to tackle the housing crisis.

The groundbreaking move, which has been approved at a full meeting of Conservative-led North Yorkshire County Council today, will see the premium introduced for council tax bills on second homes from April 2024, should Royal Assent be given to legislation to give local authorities extra powers.

The county has the highest number of second homes in the region, and concerns have been voiced that the trend is undermining the availability of housing for local communities as well as inflating property prices.

The North Yorkshire Rural Commission, which was established to look into a host of issues affecting countryside communities, last year highlighted the affordable housing crisis as among the greatest challenges to resolve.

The meeting today heard an impassioned debate in which numerous concerns were raised over whether the levy would tackle the issue and the housing crisis blamed on Conservative governments selling off council housing and not building sufficient homes to replace them.

As some opposition councillors described the levy as “far from perfect” and “a serious and credible start” to trying to resolve the lack of affordable homes in areas such as Harrogate, the North Yorkshire coast, the North York Moors and the Yorkshire Dales, leading members of the authority nodded in agreement.

The meeting was told it is hoped the premium will provide a £10m boost to finance council priorities, including to help introduce more housing in areas particularly affected by the affordability crisis.

Research has shown the Harrogate district, along with the Craven and Ryedale areas, could each provide about £1.5m in extra revenue through the premium.

‘We feel we are being penalised’

While the authority has claimed the measure is “ultimately aimed at bringing second homes back into use for local communities”, the meeting heard from second home owners in Nidderdale who told councillors the move would create financial difficulties for them.

One couple told the meeting they had converted a chapel, increasing the housing stock in the dale for future generations, but were now facing a penalty for having done so.

The residents stated: 

“We feel we are being penalised for something that is not of our making.”

Independent Cllr John McCartney said the tax premium would amount to “tinkering at the edges”, while Independent group leader Cllr Stuart Parsons said “penalising those who aspire” was the wrong way to deal with the problem.

He called on the council to buy houses and put local occupancy restrictions on them and said there were still simple loopholes for second home owners to avoid paying either council tax or business rates, so the authority looked set to “cut its own throat”.

However, Upper Dales member Councillor Yvonne Peacock said the policy was vital as many people could no longer afford to rent or buy properties in her division.

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The council’s executive member for finance, Cllr Gareth Dadd, said the premium would be levied consistently regardless of second home owners’ circumstances, so the authority could do all it could to incentivise people not to own second homes in the county.

He said there would always be exceptional cases and officers would have the ability to grant reductions if certain criteria were met.

Cllr Dadd said the overwhelming majority of second home owners would be faced with either releasing their properties into the rental market or providing funds for key council services.

Ahead of a majority of members passing the levy, he said while he did not support greater taxation, he was absolutely committed to the move which “would help local people to live and remain in the county”.

Levelling up council tax charges over two years is ‘best compromise’

A move to harmonise council tax payments across North Yorkshire “provokes a whole host of issues around fairness”, a meeting has heard.

A meeting of North Yorkshire County Council’s executive was told residents in Hambleton district were facing having to pay significantly higher bills to bring their charges into line with those being levied by second tier authorities elsewhere in the county.

However, leading members highlighted that many Hambleton residents were also facing significant council tax charges from parish councils for services such as public toilets that in other places were being charged for by district councils.

In addition, concerns have been raised that under proposals to level up council tax charges across the county, residents in districts such as Harrogate, Scarborough and Richmondshire would end up paying more for the same services from the unitary council for the next two years.

Councillors were told while Selby and Craven district residents faced paying relatively modest increases in their council tax to bring their payments up to the average, Hambleton district residents were currently paying £89 less than the average district council charge across the county.

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The meeting heard a cross-party group of councillors representing all seven districts had agreed while it was necessary to bring council tax charges into line across the county as part of devolution, the authority would not seek to increase the funds it generated from the levelling up exercise.

Corporate director Gary Fielding told the meeting that councillors had achieved a consensus that levelling up the charges over two years would be the best compromise.

He added:

“The group did recognise that this does provoke a whole host of issues around fairness. Fairness is perhaps in the eye of the beholder, but this was recognised as an appropriate way forward.”

The authority’s executive member for finance, Councillor Gareth Dadd, said there was no easy way for the council to harmonise council tax charges and that there would be “winners and losers”.

He said while Hambleton residents paid less council tax to the district council than other areas, they paid council tax charges to town and parish councils that residents of other areas did not.

Coun Dadd said:

“In some of the ‘winning’ areas there currently isn’t a town council that picks up some of the services.”

After receiving the approval of the authority’s executive, residents will be consulted over the proposal, which will also be considered at a full meeting of the council next month.

Cost of North Yorkshire unitary authority’s new council tax system soars

Council bosses in North Yorkshire are facing calls to explain why a new council tax system will cost taxpayers millions of pounds a year more to run than the current system.

North Yorkshire County Council has revealed the cost of administering the unitary authority’s council tax scheme is expected to be £37m, £2.4m more than the current structure run by North Yorkshire’s district and borough councils.

A cross-party group of councillors has proposed unifying council tax bills across the seven districts over the next two financial years as some areas are paying higher rates than others.

Yesterday the Stray Ferret reported on how the Harrogate has the highest council tax in North Yorkshire.

The move would mean Harrogate’s average bills for a band D property would fall by £23.47 during each of the two years on a current bill of £1,723.27 whilst other areas might see a rise.

The proposed increases and cuts in council tax charges do not include what increases the new unitary authority, police and fire services and parish councils may levy from April 1.

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The county council’s executive member for finance, Councillor Gareth Dadd said the authority was acutely aware of the financial pressures which everyone is under with rising inflation and the cost of energy and food soaring.

He said:

“A great deal of work has gone into the proposed scheme to harmonise council tax bills across all seven districts, and we believe that the plan that has been drawn up to introduce the changes over the two years represents the fairest way forward for everyone involved.”

As part of the proposals, the executive committee will consider providing up to 100 per cent reductions on council tax bills for households on the lowest incomes.

However, opposition politicians said the rising cost of administering the new council tax system raised a red flag, particularly after as the county council had estimated savings brought about by creating abolishing the district and county councils and establishing a unitary authority should reach £252m over its first five years.

Councillor Andy Brown, the authority’s Green Party group coordinator said:

“We were assured that combining into one council would be simple and would reduce costs. We are already seeing how complicated it is and how hard it is to achieve the cost savings.”

Leader of the council’s Independent group, Councillor Stuart Parsons added:

“Big is supposed to be better. One is supposed to be cheaper than eight and this is an area where one is certainly not cheaper. How many other areas will there be.

“This is against all the logic of the massive savings that they claim would result from unification. What other extra costs are envisaged as a result of local government reorganisation and what savings are envisaged to come up with the magnificent £50m a year they have claimed would be found.”

Cllr Parsons said it would take many years for the new authority to iron out inequalities between services in the seven boroughs.

He added:

“I would like a full explanation of how the council has come to this £2.4m figure and how they are going to make it cost neutral. Eventually they should be able to make savings on staff as they establish a single team, but it’s going to take a long, long time.”

Harrogate district council tax set to fall by £23 under devolution

Council tax bills for a Band D property in Harrogate are set to fall by £23.47 for the next two years as part of the transition to the new North Yorkshire Council.

Harrogate Borough Council currently charges the highest council tax of the seven district councils in North Yorkshire.

An average band D property in the district is currently £1,723.27, compared with £1,586.83 in Hambleton, which has the lowest level of council tax in the county.

The seven councils will be abolished on April 1 as part of the government’s devolution agenda and North Yorkshire County Council is to meet next week to discuss ways to harmonise the level of payment across the county.

Under plans being drawn up, Band D bills in the Harrogate district would fall by £23.47 a year for two years while Hambleton’s bills would increase by £89.49.

However, the rises and falls due to harmonisation do not take into account the annual increase in council tax bills, which is set to be approved by county councillors in February. The figures also relate to just the precept for county and district authorities, and do not include money for North Yorkshire Police, the county’s fire brigade and parish or town councils.

If a Harrogate town council is formed, the precept for people living in the town council area would increase.

Decision on Tuesday

The advent of a new council covering the whole of the county in April means there is a legal requirement to ensure all council taxpayers in North Yorkshire are charged the same amount.

The proposals to phase this in over the next two years will be considered by members of North Yorkshire County Council’s decision-making executive when they meet on Tuesday next week. They are based on recommendations by a cross-party working group of councillors.

The working group, which was established by the county council’s executive in June, considered a range of proposals, including harmonising council tax bills over a period of up to eight years.

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North Yorkshire County Council’s executive member for finance, Cllr Gareth Dadd, who is also the authority’s deputy leader, said:

“The challenge to harmonise council tax bills across the county is obviously a significant one, but it is an issue we have to address before the new North Yorkshire Council is launched in April next year.

“We are acutely aware of the financial pressures which everyone is under not just in North Yorkshire, but across the whole country, as we see inflation rising and the cost of energy soar along with the price of food and drink and other essential items.

“A great deal of work has gone into the proposed scheme to harmonise council tax bills across all seven districts, and we believe that the plan that has been drawn up to introduce the changes over the two years represents the fairest way forward for everyone involved.”

There would be huge variations in the amount of funding generated if the decision was taken to opt for moving council tax levels to the lowest amount seen in Hambleton or choosing to adopt the highest level in Harrogate.

If council tax bills were brought in line with Hambleton, there would be an annual reduction of funding in the region of £21 million, falling from the current level of £401.8 million to £380.4 million.

By comparison, an extra £11.3 million would be generated by increasing council tax bills to the level currently paid in the Harrogate district, with the average across North Yorkshire for owners of a Band D property paying £1,723.27 instead of £1,676.32.

Funding from council tax is used to finance services ranging from waste collection and recycling to highways maintenance and adult social care.

 

 

Double council tax on North Yorkshire second homes approved

Owners of second homes in North Yorkshire are set to pay a 100% premium on their council tax.

Senior councillors on North Yorkshire County Council yesterday approved the measure, which is expected to come into force within two years.

The council’s executive unanimously backed the plans, which would effectively double council tax bills for second home owners, and the proposals will now be considered at a full council meeting.

The move will see the premium introduced for homes which have been sat empty for a year or more.

Cllr Carl Les, leader of the county council, said the move would help local people access housing.

He said:

“There is no simple solution to the issue of affordable housing, second homes and the impact they have on housing for local communities.

“But we recognise that bold and decisive action needs to be taken to deal with the affordable housing crisis in North Yorkshire, and that is why the executive has decided to pursue the policy of a council tax premium.

“It may not be popular with everyone, but that is not the key factor in this decision. We need to act to try and ensure more local people have access to housing in their own communities, and the premium on council tax bills for second homes will be a significant step towards achieving that.

“Second homes and the impact they can have on the availability of housing has been a long-running problem that has affected communities not just in North Yorkshire but across the country, and this was reinforced by the findings of the independent North Yorkshire Rural Commission.”

Analysis by the county council showed the introduction of a 100% premium on council tax bills for second homes in North Yorkshire could generate in excess of £14 million a year in additional revenue.

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The research said that Richmondshire could generate about £1.8 million through the second homes premium, while the Craven, Harrogate and Ryedale districts could each provide about £1.5 million in extra revenue.

North Yorkshire County Council’s executive member for finance, Cllr Gareth Dadd, who is also the authority’s deputy leader, said: 

“We know that there is an acute shortage of housing for local people in many communities in North Yorkshire, and this has been an issue that has long affected their opportunities to actually buy their own home.

“Places such as the Yorkshire Dales and the North York Moors as well as coastal towns such as Scarborough and Whitby are without question wonderful places to live.

“But with that comes the fact that these areas also see very high numbers of second homes, which affects the availability of housing for local people.

“The scheme to introduce the council tax premium will ideally see these second homes brought back into use for local people. But if not, then there will be a valuable new revenue stream created that will help fund council priorities, such as helping introduce more housing for local communities.”

Double North Yorkshire council tax on second homes set to go ahead

Second home owners in North Yorkshire look set to be the first in the country to pay double council tax.

It comes after an investigation into avoidance loopholes concluded there is potential for the charge to be avoided.

In an attempt to help improve access to housing for local people, North Yorkshire County Council’s executive will on Tuesday consider launching a 100% council tax premium on second homes and premises which have been left empty for a year or more from April 1, 2024.

The move follows last year’s North Yorkshire Rural Commission recommending a charge is levied on second homes and used to finance affordable housing, helping to reverse the ongoing exodus of young families from areas where house prices are many times above average wages.

Two months ago the authority’s leading members postponed a decision on the premium after numerous concerns were raised about whether it would encourage council tax avoidance, for instance by second home owners transferring properties transferring to business rates.

Some opposition councillors have claimed the premium will prove difficult to implement while people who have owned properties in the county for decades say the move will simply make second homes the preserve of the rich.

In a report to the executive, officers forecast more than £14 million a year could be raised from using the levy being introduced by the government in the Levelling Up and Regeneration Bill.

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Research has shown Richmondshire could generate about £1.8 million through the premium, while the Craven, Harrogate and Ryedale areas could each provide about £1.5 million in extra revenue. Hambleton could provide £1 million and the Selby district a further £260,000.

Addressing the concerns over tax avoidance loopholes, the report states that because council tax rates for second homes mirror those of main residences there may be issues with the classification of properties and the application of a second homes premium “may prompt owners to reclassify properties for genuine reasons”.

The report highlights that properties only need to be available to let for more than 20 weeks in a year to be classed under business rates and that the only detail needed to support such a claim is evidence of an advertisement for let for the property.

From April second homeowners must also prove the property was let for short at least 70 days.

The report states the council would use “mechanisms available” to clamp down on couples who own second homes and falsely claim they are living separately and warns of financial penalties if bogus information is provided.

Officers added while the proportion of second homes in Wales paying the 100 per cent premium had fallen by up to nine per cent since being introduced there in 2017, it is unclear whether the downward trend has been caused by avoidance loopholes or by bringing second homes back into use as housing.

Ahead of the debate, the authority’s Green Party group coordinator, Cllr Andy Brown, who represents Aire Valley, said areas faced “being hollowed out of permanent residents” and there was a strong case for raising the council tax not just on second home owners, but “anyone who rents a property out using short term online letting companies”.

He added it would take skill to design a local property tax to impact on rarely used second homes rather than North Yorkshire’s expansive tourism industry.