15,000 Harrogate district households could miss out on council tax rebate

Around 15,000 Harrogate district households could miss out on a £150 council tax rebate because they do not have a direct debit set up with the borough council.

The government announced the support last month to help ease the impact of huge rises in gas and electricity costs.

The payment will be made in April directly into the bank accounts of households with council tax bandings of A – D, but only if they have a direct debit set up with the council.

Anyone paying by any other means will need to make a claim or risk missing out on the £150.

Harrogate Borough Council has this week confirmed it is reaching out to around 15,000 households in this situation to urge them to sign up.

A council spokesperson said: 

“We’re still going through the government guidance for the scheme but we can ensure we’ll do everything we can and make every effort to ensure all eligible residents receive the rebate.

“The easiest way to ensure residents will receive this rebate is by signing up to pay their council tax by direct debit as it will be paid automatically.

“If you do not pay your council tax by direct debit you will be contacted by email or letter in due course so that this information can be provided.

“Please note, we will not contact you by telephone for this information.”

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Some concerns have been raised about the way the payments will be distributed, with Harrogate’s Liberal Democrats describing the approach as “complicated” and “divisive”.

Cllr Pat Marsh, leader of the opposition party on Harrogate Borough Council, said:

“Surely the best way to do it is just to reduce everyone’s council tax bill by £150 at source.

“The bills have not gone out yet, so there is time to do it.”

Cllr Marsh also echoed calls for a one-off windfall tax on big profit oil and gas companies to “raise money to support millions of families facing soaring energy costs”.

This comes after figures from the Liberal Democrats showed Harrogate residents will be among the hardest hit by the energy crisis, with households in the district paying around £796 more this year.

Cllr Marsh said: 

“For years the Conservatives have ignored this problem and failed to take the bold action we need to reduce fuel poverty.

“Boris Johnson cannot look the other way any longer while families face an impossible choice between heating and eating.”

The government has argued that a one-off tax like this would put jobs and investments at risk – something Harrogate MP Andrew Jones previously said would be “very dangerous” and a “potentially hugely damaging blow to British industry.”

As well as the £150 council tax rebate, the government has also announced a £200 discount on energy bills for all domestic electricity customers from October, with the government meeting the costs.

However, unlike the council tax rebate, this discount will be automatically recovered from people’s bills in equal £40 instalments over a five year period from 2023, when it is hoped global wholesale gas prices will have come down.

For more information on the council tax rebate go to www.harrogate.gov.uk/council-tax.

North Yorkshire councillors clash over £56 council tax hike

Fiery exchanges erupted as North Yorkshire County Council approved levying close to the maximum permitted council tax rise after hearing residents were facing a financial “perfect storm”.

The last full meeting of the authority ahead of elections for a new unitary authority in May saw the authority’s chairman repeatedly intervene in debates to restore “dacorum and dignity” to proceedings as councillors accused each other of failing to protect the most needy residents.

Conservative councillors claimed as much of the rise was to cover soaring social care costs, it would be “reckless not to fund our responsibilities”, while opposition members told the meeting the increase would prove impossible to meet for many households.

Proposing a below-inflation council tax rise of 3.99%, which will mean the authority’s bills for the average Band D property increase by £56 to £1,467, its deputy leader and finance boss Cllr Gareth Dadd said the council’s budget aimed to protect services for vulnerable people while leaving “a legacy” for the new authority to inherit.

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He told the meeting the increase struck a balance between those key ambitions and protecting taxpayers as “our instinct has always been to maintain a council tax rise as low as practically pragmatically possible.”

Cllr Dadd said the authority had “gone some way to reducing the burden on the tax-paying public of North Yorkshire” by not levying the maximum 4.49 per cent council tax precept increase.

Cllr Stuart Parsons, leader of the council’s Independent group, said the authority was banking on residents not noticing the council’s precept increase, alongside others being levied by the police and fire services and borough, district and parish councils, due to the government’s £150 council tax rebate for some households.

He said: 

“What we have to remember is that £150 will disappear in a year. Then there is the cost of living crisis and we do not appear to be making any effort to help people with that.”

Cllr Parsons said there was a significant section of society that just missed out on financial help such as free school meals that could not afford the council tax increase.

Harrogate district council tax hikes 2022/23

Total Band D bill: £2,079.59

Independent councillor for Malton Lindsay Burr added with high inflation, wages effectively falling and national insurance increases being introduced at the same time as the council tax hike in April, the authority had a chance to ease pressures on residents.

She said: 

“Surely there has never been such a justified time to freeze the council tax and listen to all those residents who are pleading with us to try and help them. Average families are now having to use food banks.

“The perfect storm is gathering as we all know. Maybe it is time we stop and help a little bit and not add fuel to the fire.”

Cllr Bryn Griffiths told the meeting was Liberal Democrat group was also opposing the rise as adult social care was an urgent national issue.

Ahead of 53 councillors voting for the increase, three abstaining and three against the rise, Cllr Eric Broadbent said the Labour group “reluctantly” supported the regressive tax increase as “the last thing we want to see is any reduction in critical services”.

£72 rise in Harrogate district council tax bills set to be confirmed

Final approval is set to be given for a hike in council tax bills this week as North Yorkshire County Council decides how much it will charge.

Total council tax is based on the amount charged by the county council, Harrogate Borough Council and North Yorkshire Police, Fire and Crime Commissioner. Some villages also charge a small sum too.

The county council will become the last to vote on its budget plans in the days ahead.

County councillors will meet on Wednesday to make a decision on a planned 3.99% hike in the authority’s share of bills, which equates to a £56 increase.

If approved, the move would see total bills for ratepayers in Band D households rise to £2,079 for the year. This would be £72 more than the current £2,007, which represents a 3.58% increase.

Cllr Carl Les, leader of the county council, said previously that the decision to increase council tax was a difficult one.

However, he added that the authority continues to lobby for reform of the council tax system.

He said:

“We continue to feel that residents in North Yorkshire pay too much council tax, particularly in comparison to London, and urge the government to press on with funding reform to create a fairer solution for rural counties.”

Harrogate district council tax hikes 2022/23

Total Band D bill: £2,079.59

Last week, both the borough council and North Yorkshire’s police commissioner signed off on increases in their share of the rate.

For Harrogate, the share of council tax will increase by £5 despite concerns from opposition councillors for the council to use its reserves.

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Cllr Pat Marsh, leader of the opposition Liberal Democrat group on Harrogate Borough Council, said the authority should be using more of its cash reserves to ease the pressure on residents.

However, Cllr Graham Swift, the borough council’s cabinet member for economic development, dismissed the idea of not increasing council tax as “nonsense”. He said the authority faced increasing costs and had to keep services running and staff paid.

Meanwhile, North Yorkshire Police will see a £10 increase and North Yorkshire Fire and Rescue’s rate will rise to £75.61.

Harrogate council approves council tax hike

A 1.99% council tax rise has been approved by Harrogate Borough Council as part of its final budget before the authority is swallowed up into a new North Yorkshire Council.

The increase equates to an extra £5 per year for average Band D households and will come into force from April.

It was approved at a full council meeting last night which marked the last time that the Conservative-run council will set its own budget before it is scrapped and replaced with a unitary authority covering the whole of North Yorkshire from April 2023.

The county’s other six district councils will also be scrapped, as well as North Yorkshire County Council which has proposed a 3.99% council tax rise for Harrogate district residents in its final budget.

There are further tax rises expected from police and services which if all approved could see council tax bills for average Band D households rise to a total of £2,079.

This comes at a time when families are facing a cost of living crisis and opposition councillors have warned many will have to choose between heating and eating to cover their bills.

‘Residents will be faced with eat or heat choice’

Cllr Pat Marsh, leader of the opposition Liberal Democrat group on Harrogate Borough Council, told last night’s meeting that the authority should be using more of its cash reserves to ease the pressure on residents.

She said: 

“It is such a pity that we could not have a 0% increase in council tax to help our residents who are faced with soaring energy costs, fuel and food bills, and 1.25 percentage point in National Insurance contributions from April.

“Many residents will be faced with the eat or heat choice in 2022 – that is disgraceful.

“This is also why we should have kept our fees and charges at a 0% rise and not at least 2.5% as mentioned in many of the cabinet budget papers.

“Using our reserves would take the pressure off our residents to some small degree.”

Cllr Pauline McHardy, leader of the Ripon Independents group, also said she would have supported no increase in council tax and described the 1.99% rise as “another blow to the community”.

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Cllr Graham Swift, deputy leader of the council, responded to say that not increasing council tax would be “nonsense” as the authority is also facing increasing costs and has to keep services running and its staff paid.

He also argued that no alternative budget proposals were put forward by the opposition parties and that the council’s cash reserves had been earmarked for projects.

Cllr Swift said: 

“We have to pay our staff… and we will also be squeezed by energy prices and as a result of this giving a zero council tax increase to all of our residents is nonsense.

“Despite the hardships that we will all face over the next year or so, I think most rational people recognise that global energy prices are the principal driver of the heating and electricity costs – not Harrogate Borough Council.”

‘Proud of the council’s work’

Cllr Swift added:

“£5 a week is the council tax. For that people get their bins emptied, their leaves swept, their provisions of leisure facilities and all the programmes that go with helping our most needy.

“The list is almost endless of what district councils do and I’m very proud of the work that many people in this council do to ensure that we can provide not only a balanced budget, but a controlled modest expenditure increase.”

The 1.99% rise will increase Harrogate Borough Council’s tax bills for the average Band D property up to £255.92.

The council makes up just under 13% of bills, while North Yorkshire County Council makes up 70% and police and fire services the remainder.

Parish and town councils also charge a small levy.

All 24 Conservative councillors present at last night’s Harrogate Borough Council meeting voted in favour of the 1.99% rise, while seven Liberal Democrats abstained and two Ripon Independents voted against.

Harrogate council to vote on 1.99% council tax hike

A planned 1.99% council tax rise is set to be decided by Harrogate Borough Council tomorrow as part of its final budget before the authority is abolished.

The proposed increase – which equates to an extra £5 per year for average Band D households – will go to the vote at a full council meeting.

North Yorkshire County Council and police and fire services have also proposed tax rises which if approved could see council tax bills for average households rise by £255.92 to a total of £2,079 from April.

This comes at a time when families are facing a cost of living crisis, with every home set for a £1,200 increase in bills this year as energy prices rise.

Conservative-run Harrogate Borough Council said its proposed tax rise was needed to balance the books as it continues to feel the effects of government funding cuts and “unprecedented” pandemic pressures.

Liberal Democrat Cllr Chris Aldred, chair of the council’s overview and scrutiny commission, gave feedback on the budget at a meeting last Wednesday when he said staffing would be a “real issue” for the authority before it is replaced by the new North Yorkshire Council in April 2023.

He also said he was disappointed with a budget consultation which just 0.06% of the Harrogate district population took part in.

Council leader Richard Cooper said he shared these concerns before questioning Cllr Aldred why he and other Liberal Democrat councillors abstained from voting on the budget earlier in the process.

Cllr Cooper said: 

“I’m really pleased the commission approved, but there is something that puzzles me year-on-year. Three of them abstained this year, the same three abstained last year and they also abstained probably the year before.

“No alternative budget was offered and if the commission supports this budget, on what grounds is anybody abstaining?”

Cllr Aldred responded to say the move would give the Liberal Democrats “more room for manoeuvre” at tomorrow’s full council meeting.

Under council rules, any political party, councillor or group of councillors can propose an alternative budget. The last time this was done was in 2015 when the Liberal Democrats tabled their own proposals.

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The council makes up just under 13% of council tax bills in the district, while North Yorkshire County Council makes up 70% and police and fire services the remainder. Parish and town councils also charge a small levy.

Paul Foster, head of finance at Harrogate Borough Council, said in a report that while the authority’s government grant allocations had been reduced by £8.2 million since 2010, it had continued to prioritise its services including bin collections and planning.

He also said the council’s key income streams would not reach pre-pandemic levels for at least another year – and that this was another reason for the proposed tax increase.

Mr Foster said:

 “During a period of significant funding reductions, as the government continued to rein in the national deficit, and as other councils across the country faced uncertain futures, Harrogate has continued to maintain its valued frontline services.

“This is a testament to the council’s strong record of financial management before and during the age of austerity.

“In addition to this, the council has been faced with an unprecedented financial detriment as a result of the covid-19 pandemic.

“The resultant economic downturn continues to impact on the council’s finances, with commercial property income, planning fee income and the convention centre lettings income, now not forecast to reach pre-pandemic levels until 2023/24.”

Chief constable says maximum council tax rise will enable crime prevention

North Yorkshire Police’s chief constable has sought to justify the force’s precept increase, saying it will enable officers to avert offences impacting on communities rather than just react to it.

Lisa Winward said the addition of £10 to a Band D property’s council tax bill would enable the force to get on the front foot and interupt what she described as “a conveyor belt” of issues caused by a minority of residents.

Ms Winward was speaking to North Yorkshire’s police, fire and crime panel as it unanimously agreed that the average household should be charged £281.06 for the service for the coming financial year.

Commissioner Zoe Metcalfe had told the meeting if she did not levy the £10 maximum increase in council tax precept for the coming year that money would be lost to the force in future years, adding she was “very mindful” of the financial pressures facing residents.

She said the increased precept would cover the rising costs the force was facing and pay for an additional 78 police officers, some of whom would be deployed to improve public contact, solve issues facing communities, roads policing and tackling violence towards women and online abuse.

Ms Metcalfe said: 

“The precept increase will also allow me to invest in a range of services for victims, and in particular, a new victims’ centre to house the North Yorkshire Sexual Assault Assessment Centre and the child sexual assault assessment services in York.

“I will also hold the chief constable to account to ensure a full return on investment. I will be setting clear performance expectations to the chief constable to make North Yorkshire Police more efficient.”

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However, City of York Council leader Cllr Keith Aspden highlighted the precept increase was higher than crisis-hit social care authorities were being allowed to levy, and questioned whether communities would “notice the difference that really justifies that increase” the new posts.

The meeting heard the increased precept would fund the force’s Early Action Together programme, which is focused on supporting the most vulnerable residents with complex needs to “prevent harm before it happens”.

Ms Winward said policing tended to deal with society’s symptoms and longer term problem-solving had to come from a placed-based bespoke approach.

She said: 

“A lot of the calls that we receive are cyclical. So the same people with the same problems who haven’t had the root causes of their problems solved by any agency.

“Once somebody is hurt or harmed or a community is damaged it takes a lot of time and effort and work among a lot of public services to try and put that thing right. If we can prevent it from happening in the first place that is a much more effective way of our public services supporting those communities.”

Ms Winward said with 6,000 miles of roads across a county which is a popular destination for some motorists, such as motorcyclists, extra resources were needed for preventative measures to tackle road safety and criminals from outside the county targeting North Yorkshire.

Cllr Mike Chambers said while he understood the reasons behind the increase, he was concerned the commissioner was levying the maximum rise given the economic circumstances facing residents.

Calling for more warranted officers to be seen on the beat, he said: 

“I think this time we really do need to see some early and discernible results in what the public are paying for.”

Police commissioner proposes £10 council tax hike

North Yorkshire’s police commissioner has proposed a £10 hike in the force’s share of council tax.

The proposal would see the rate increase to £281.06 from April this year.

Zoe Metcalfe, the Conservative police, fire and crime commissioner, is expected to agree the proposal at a meeting of the North Yorkshire Police, Fire and Crime Panel on February 7.

A report due before the meeting said the increase would help the force hit targets for officer recruitment and pay as set by government.

It said:

“This will provide sufficient funding to deliver the increased levels of police officers, as required by the government, the expected increase in pay, the unavoidable increase in National Insurance contributions whilst also meeting some significant increases in non-pay inflation.”

Meanwhile, Ms Metcalfe will also propose a 1.98% increase in the fire service council tax precept – which would see bills rise to £75.61.

Planned council tax hikes 2022/23

The service is currently running at a £1 million deficit and can only hike its share of the rate by 1.99%, under government rules.

The commissioner’s office also warned councillors at a meeting earlier this month that the service faces borrowing up to £33 million after ministers abolished its capital grant.

Ms Metcalfe described the funding settlement for the fire service as “very unfair” and pledged to lobby government for more support.

Council tax hikes

Harrogate Borough Council, North Yorkshire County Council and North Yorkshire’s Police, Fire and Crime Commissioner have all proposed increasing their share of council tax this year.

It means taxpayers across the district will face a bill of nearly £2,100 this year.

Local precepts for parish and town councils, such as Ripon City Council, will also be included on bills.

Final decisions on council tax rates from all public authorities will be made in February.

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North Yorkshire County Council plans £56 council tax hike

North Yorkshire County Council looks set to approve a 3.99% rise in its council tax demand, despite its leadership acknowledging numerous residents would struggle to afford the increase.

The council’s Conservative-run executive unanimously recommended that the authority sets a £56 rise in its precept for the average Band D property.

A final decision on the council tax bill will be made at a full council meeting in February.

It means average households will have to find £1,467 to pay for the council’s bill, alongside other expected increases by Harrogate Borough Council and police and fire services.

Several members of the executive highlighted the “cost of living challenge” facing residents, and the meeting heard the squeeze on household finances was forecast to tighten.

Cllr Gareth Dadd, the authority’s executive member for finance, said the county council’s precept was “already behind the curve”, having increased by 33% over the past 11 years while inflation had risen by 38%.

He said he accepted that “there will be many that struggle” with the council tax rise, so the proposed rise would be 0.5 per cent less than the maximum the government would allow the authority to levy without holding a referendum.

Cllr Dadd said: 

“We have a moral duty both to our vulnerable and the residents and the services that we provide as well as a moral duty to look after the taxpayers’ purse. I think we’ve got to give at least a nod to that second part of the equation.”

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He said the proposed rise would enable the authority to be in the best possible shape ahead of the local government reorganisation transition to a unitary council while recognising the drain on the taxpayer.

The meeting heard sharp rises in demand for services such as children’s social care and increases in costs of providing adult social care had left the council’s finance bosses grappling with a decision over whether to “raid the reserves” or increase taxes to limit its deficit.

The executive heard while freezing council tax would be “simply irresponsible”, setting a 2.99% rise would not be in the best interests of residents or the incoming unitary authority.

However, the meeting heard claims from councillors that the authority’s recent past had seen it make a number of politically difficult decisions, putting the interests of residents in the medium term above popularity.

County council faces using up to £11m of reserves to balance books

North Yorkshire County Council could dip into its reserves to balance its books in the next financial year.

Ahead of a budget meeting next week, senior county councillors have warned that the council may have to use up to £11 million of its reserves — despite hiking council tax rate.

The authority currently has £271 million in reserves, much of which is earmarked for capital projects and other costs, such as £31 million to fund the transition to the upcoming new unitary authority North Yorkshire Council.

Cllr Carl Les, leader of the county council, said the authority still faced risks over the ongoing impact of covid and social care.

He said:

“We are facing an unprecedented range of risks – the continuing impact of covid, harsh winters and climate change, the need for interventions to prop up social care, the escalating costs of transport for special educational needs students, to name but a few.

“These pressures are such that given the need to continue to deliver key services at a time of rising demand and the need to successfully transition to a new council, our final budget will require a higher degree of support from reserves than would otherwise be the case or is desirable.”

County councillors will meet next week to decide whether to support proposals for its budget for 2022/23.

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Among the plans will be an increase in council tax. The county council has the power to hike its rate by as much as 4.5%.

Depending on the level of council tax set, the county council will have to use between £6 million and £11 million of its reserves.

The authority has also warned it will still face a black hole of at least £30 million in three years, even if it levies the maximum permitted council tax rise this year.

Cllr Gareth Dadd, deputy leader and executive member for finance, said: 

“These continue to be turbulent times. We are responding to increased pressures that the pandemic has placed on our communities and the county’s economy.

“At the same time, long-term challenges grow, for example the massive pressures in social care. This means we face further tough choices as we budget for the future.”

In depth: Why Harrogate district residents can expect council tax rises

Harrogate district residents should brace themselves for another increase in their council tax bills this year.

As local authorities begin to unveil their budget plans, a hike in rates is one of the measures they will take.

Council tax bills are made by adding up the precepts charged by North Yorkshire County Council, Harrogate Borough Council, North Yorkshire Police, Fire and Crime Commissioner and parish councils.

Harrogate Borough Council has already announced a proposed £5 increase and North Yorkshire Police, Fire and Crime Commissioner has suggested bills could go up as far as £10 for the police force.

A closer look at the detail gives a glimpse into why those authorities are hiking rates.

How much will my bill go up by?

So far, the only authority which has shown its full hand on council tax is Harrogate Borough Council.

Senior councillors at Harrogate council have backed a £5 increase – which would amount to £255.92 for a band D property.

A final decision on the increase will be made in February.

North Yorkshire County Council and North Yorkshire Police, Fire and Crime Commissioner have yet to confirm their proposals — but have suggested what the rate could be.

North Yorkshire’s police commissioner gave a North Yorkshire Police, Fire and Crime Panel a presentation on Thursday which outlined a budget based on a £10 increase.

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This would see the police precept on council tax bills increase to £281.06 and give the force an additional £3 million in income.

However, the fire service will only be able to hike its share by 1.99%. This would see the rate charged for fire services rise to £1.46 per week.

North Yorkshire County Council, which makes up the majority of residents’ council tax bills, has yet to suggest an increase.

But it does have the power to hike its share by as much as 4.5%.

Should senior county councillors support such an increase, this would see its share rise from £1,411 for a band D property to £1,474.

Why is my bill going up?

Nearly two years of covid and more than a decade of government cuts has had a drastic affect on local authority finances.

Coronavirus has left both North Yorkshire County Council and Harrogate Borough Council with financial blackholes to fill.

Last month, Cllr Carl Les, leader of the county council, warned that the authority will have to find £19 million in savings this coming year.

Cllr Carl Les, leader of North Yorkshire County Council, who has ruled himself out of being a future Mayor of North Yorkshire.

Cllr Carl Les, leader of North Yorkshire County Council. Picture: North Yorkshire County Council.

A government settlement of £26 million will not be enough for the authority to balance its books in 2022/23.

However, Cllr Les did acknowledge that the council tax system needed to be reformed.

He said:

“We continue to feel that residents in North Yorkshire pay too much council tax, particularly in comparison to London, and urge the government to press on with funding reform to create a fairer solution for rural counties.”

Similarly, Paul Foster, head of finance at Harrogate Borough Council, told senior councillors that its finances were not expected to reach pre-pandemic levels until at least 2023/24.

He said the council was predicting a reduction in income for the next financial year of £150,000.

Mr Foster also said government grant allocations had been reduced by £8.2 million since 2010 and that the council would have to dip into its reserves to fund some major projects.

Michael Porter, director of finance at North Yorkshire Police, Fire and Crime Commissioner's office, setting out the bleak financial picture for the fire service earlier this week.

Michael Porter, director of finance at North Yorkshire Police, Fire and Crime Commissioner’s office, setting out the bleak financial picture for the fire service earlier this week.

Fire service hit hardest

But perhaps the authority feeling the affects of both covid and cuts most acutely is North Yorkshire Fire and Rescue.

On Thursday, the Stray Ferret reported that the service has had its capital grant abolished by the government, which means it could have to borrow up to £31 million to fund upkeep of stations and fire kit for crews.

In addition to this, the service is currently running a deficit of £1 million and cannot increase its share of council tax by more than 1.99%.

North Yorkshire Police, Fire and Crime Commissioner, Zoe Metcalfe, described the precept cap set by government as “very unfair” and pledged to continue lobbying ministers for fairer funding.

To illustrate just how bleak the financial situation is, Martin Walker, a former judge and co-opted member of North Yorkshire Police, Fire and Crime Panel, said he was “horrified” by it.

He told Michael Porter, director of finance at the commissioner’s office, on Thursday:

“I have to say that I’m horrified, if that’s not too strong a word, about where the fire service is going to be.

“It’s in desperate need of capital injection and renewing stations, renewing fire engines and renewing all sorts of infrastructure.

“You’re talking about borrowing and having to borrow £30 million. I hesitate to say this, but god help us. 

“The fire service is fighting so hard to provide the service that the public need and yet you’re telling us as a panel that it’s going to get worse, then it will get worse and after that it will get worse.”

What happens now?

Council officials, including the county council and commissioner’s office, will set out their plans for council tax this month.

After that, councillors will vote on the proposals.

All of the public bodies which set council tax rates will confirm their budgets in February.

From there, residents across the Harrogate district will receive their bill for the next financial year in April. The only certainty is that they will go up again.