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.

Consultation launched to set priorities for new North Yorkshire council

A major consultation will ask people across North Yorkshire to give their views on public services this month.

North Yorkshire County Council is carrying out the project, titled Let’s Talk, to provide the foundations for decision-making and policy when the new unitary authority comes into effect in April next year.

It will see the existing NYCC and seven district councils, including Harrogate Borough Council, abolished in favour of the single authority for the whole of North Yorkshire, excluding York.

NYCC’s leader, Cllr Carl Les, said the results will deliver a vision for the new council, showing people’s priorities for spending on everything from social care and education to waste collection, recycling and highways maintenance.

He said:

“Having one new council will save millions of pounds by streamlining services and preventing duplication, creating the most efficient and cost-effective way of delivering them that we can.

“This money will help support services to ensure they are stronger and fit for the future and will fund decision-making on the most local level possible.

“It is vital we engage with the public to help shape exactly how the new council will operate, and this biggest ever conversation in North Yorkshire will be the way in which we can glean people’s views.

“I would urge everyone who lives and works in North Yorkshire to take time to put forward their opinions, and we will listen carefully to those views.”

The Let’s Talk campaign begins on Monday, September 19, running until Friday, December 23.

The first topic in the consultation will be on local communities, looking at education, job opportunities, parks and open spaces, and more.

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Future discussions will include public transport, roads and pavements, and access to libraries and museums. Housing provision, climate change and mobile phone and broadband coverage will also form part of the project.

The responses will help to shape policy for North Yorkshire Council over the first three years of its existence.

NYCC has pledged to ensure all communities have the opportunity to engage with the consultations through local events, which are yet to be announced, and online.

Cllr Les added:

“The new council will be the largest geographically in the country as it will cover England’s largest county, but it is being built with local at the heart of everything it will do.

“There will be local staff providing local services, based on local priorities and decision-making taking into account the views of the public.”

To take part in the consultation from September 19, click here. Details of events will also be posted on the same website.

No council tax money used to repair roads reveals county council

North Yorkshire County Council has revealed it does not use any council tax revenue on road repairs, despite it being among residents’ top concerns.

The authority’s highways executive member, conservative councillor Keane Duncan, highlighted the decision to focus its spending on other areas after hearing further complaints about the parlous state of roads from elected community representatives.

The authority has recognised for more than a decade that it faces a road repairs backlog running into hundreds of millions of pounds and has responded by prioritising routes.

In response to recent complaints, cllr Duncan has started a tour of the county’s 89 electoral divisions.

Ripon councillor Andrew Williams said cllr Duncan should invite North Yorkshire’s MPs to join him on his “state of the roads tour”.

He said:

“Pressure needs to be borne at government level as well to increase the settlement the county.”

Cllr Williams said some of the savings identified in local government reorganisation should be used for the repair of roads, which was residents’ number one complaint.

He added it would be of concern to residents that none of the council tax they paid was being used for highways maintenance:

“I think they equate the council tax they are paying and the state of the roads.

“I think if we are identifying £67m of savings across the county, some of those need to be invested in our highway network. ”

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Scarborough councillor Tony Randerson said he had spent years pressing the council for some roads to be resurfaced, but ones in certain areas, such as Scarborough and Selby, appeared to be lower on the priority list to those in the Harrogate and Knaresborough.

He said:

“Becoming a unitary authority is not going to be good for places like Scarborough and Selby, and Eastfield particularly, because it is difficult enough now to get the necessary services. What’s it going to be like when it becomes ruled through Northallerton?”

The authority’s highways executive member, Councillor Keane Duncan, said during the recent election campaigns, residents’ road maintenance concerns had been among the leading issues raised on the doorstep.

He said:

“We have a network of 8,500km of surfaced road. Very roughly, with the budget we’ve got we can treat 300km annually, through a combination of surface dressing, resurfacing and reconstruction.”

Cllr Duncan said the government road repairs settlement for the county had been fixed at £40m for the next three years by the Department of Transport.

 “We currently do not supplement or support that £40m settlement with local council taxpayer money. None of the council taxpayers to North Yorkshire County Council goes into that road maintenance.

“Clearly, £40m this year will not deliver the same as what £40m would deliver in future years, so what I am trying to do is to ascertain – and obviously we have a very difficult financial climate – what we can do to get the same bang for our buck in future years. as this year, and exploring those opportunities.”

 

Map reveals areas which could be served by a Harrogate Town Council

The areas which could pay an extra tax to fund a Harrogate Town Council have been revealed for the first time in a new map.

A consultation on whether to create the new council will be held this summer after the proposal gathered the support of politicians in Harrogate .

Harrogate and Scarborough are the only two areas in North Yorkshire not to be parished.

And although the move has been well supported by councillors, it will be residents who have the final say on whether it should go ahead.

A new map (pictured above) from North Yorkshire County Council has revealed which areas could vote in this poll and ultimately be served by the town council.

These include:

High Harrogate and Kingsley
Valley Gardens and Central Harrogate
Fairfax and Starbeck
Stray, Woodlands and Hookstone
Harlow and St Georges
Bilton Grange and New Park
Bilton and Nidd Gorge
Most of Coppice Valley and Duchy
Parts of Oatlands and Pannal
Parts of Killinghall, Hampsthwaite and Saltergate

It has been argued that creating a town council will help Harrogate keep control of its prized public buildings and some services such as parks and tourism when the existing county and borough councils are abolished next April.

The existing councils will be replaced by a new North Yorkshire Council which could filter down some powers to all town and parish councils in what has been hailed as a “double devolution”.

Those were the words of councillor Carl Les, leader of North Yorkshire County Council, who also previously said more than one town or parish council could be created in Harrogate – if that’s what voters wanted.

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A decision to hold the upcoming consultation was agreed at a meeting of the county council’s executive today when the next steps of the legal process known as a community governance review were set out.

Councillor David Chance, executive member for corporate services, said:

“In the first set of consultations we will consult with the relevant people in the affected areas to gain their views.
“We will then take those views and make recommendations for approval.
“If it was considered appropriate to create town councils, we would then be looking to make such recommendations within a 12-month period.
“And then new town councils could potentially be created in 2024.”

Other services which could come under the control of a Harrogate Town Council include events, markets, play areas, community centres and allotments.

These arrangements are already in place at the likes of Knaresborough Town Council and Ripon City Council which charge £25.27 and £70.77 respectively for their annual parish precepts.

The idea of a Harrogate Town Council has already won the support of members of the outgoing Harrogate Borough Council who made calls for the process to be sped up.

County council leader Carl Les also said he believed Harrogate and Scarborough would both be “well served” by a lower tier of local government.

He previously said:

“I’m a great advocate of parish and town councils.
“That said, it is for the people to decide whether they want them or not.
“I’m very keen that we start the process as soon as possible and we will go to the public in Harrogate and Scarborough at the earliest opportunity.”

Decision on North Yorkshire second homes council tax premium delayed

A proposal to double council tax on second homes has been postponed to enable an investigation into whether residents with more than one property could easily swerve paying the extra charge.

North Yorkshire County Council’s executive agreed to delay considering a policy to charge a 100% premium on second homes so that the potential £14 million windfall the authority believes it could generate from April 2024 could become part of its budget decisions.

The move is part of the authority’s response to a surge in people following the pandemic buying holiday homes in the tourism destination county, increasing demand for housing and prices so that local families cannot afford to stay in the communities.

The proposal to be ready to levy the extra tax should expected government legislation be approved has been warmly some councillors as a “statement of intent” by the council.

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Some councillors saw it as the authority getting to grips with the escalating issue which has already seen some villages, particularly in the Yorkshire Dales and coastal areas, compared to ghost towns for much of the year.

The council’s officers have highlighted that although uncertainty surrounds possible loopholes in the forthcoming government legislation, a law to apply a 100% premium on second homes was introduced in Wales in 2017/18 which last year was paid on more than 23,000 properties there.

However, critics have claimed the premium could even lead to council tax receipts falling as second home owners could simply transfer the property to being a holiday cottage business or swap the named owner’s details for someone who does not own property.

A meeting of the executive heard given that council tax rates for second homes mirror those of main residences there may also be issues that need resolving with how properties are classified for council tax.

Executive member for finance Cllr Gareth Dadd told the meeting the authority was not “going soft” on the policy before it was adopted, but it wanted certainty that second home owners could not use loopholes, undermining what the authority wanted to achieve.

Nevertheless, the executive did approve following other councils in North Yorkshire in introducing the maximum permitted council tax premiums on empty properties.

Councillors heard the introduction of council tax premiums on empty properties in Ryedale had been successful in bringing properties back into use.

Properties that are left unoccupied and substantially unfurnished for two years or more, will have to pay 100% extra council from April, while those with properties that have been empty for 10 years or more, will have to pay three times their main residence council tax bill.

Cllr Yvonne Peacock, who has spearheaded a high-profile campaign to stop the exodus of young families from the Yorkshire Dales, told the meeting she was delighted by the move as run-down empty properties ruined the appearance of villages.

She said: 

“I’m sorry, I have no sympathy. If you cannot afford to do it up then you must put it on the market and let somebody buy it and they can do it up.”

793 Harrogate district second-home owners face double council tax charge

About 800 second-home owners in the Harrogate district could be hit by double council tax charges under proposals to tackle the affordable housing crisis.

North Yorkshire County Council has proposed the 100% premium on council tax bills for all second homes in the county from April 2024.

Official figures show there were 793 second homes in Harrogate last year and the county council said these could generate an extra £1.5 million a year to fund services and affordable housing schemes.

Across North Yorkshire, the tax hike could create around £14 million annually, the county council added.

Cllr Carl Les, leader of the county council, described second homes as a “major issue” for areas across the country and said the proposals for North Yorkshire would depend on the government passing legislation in the coming months.

He said: 

“The county is a wonderful place to live and visit, and that has seen the trend towards people wanting to purchase a property either as a second home or a holiday let.

“Any proposed premium on second home owners will be carefully considered and debated by the council before the new legislation is introduced.

“But the revenue generated would prove to be a key source of funding to help to bridge the new council’s budgets and finance vital areas such as homelessness costs and also providing more affordable housing.”

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The proposal has also been welcomed by councillor Pat Marsh, leader of Harrogate and Knaresborough’s Liberal Democrats, who said holiday hotspots were in danger of “becoming ghost towns” because of second homes.

She said:

“Villages in these desirable areas, in particular, suffer from the viability of not just shops and pubs, but also schools and in some areas the impact is also felt through losses of GPs and other NHS services.

“That is why the Lib Dems welcome the proposal to charge a council tax premium on second homes.

“Residents of these largely rural communities are finding it increasingly difficult to get onto the property ladder because of huge demand for holiday homes pushing up the overall price of property out of their reach.

“In some extreme areas this has created resentment and bitterness as locals cannot afford to buy property in their own communities.”

The number of second homes in Harrogate has increased by more than 13% over the last decade and it has been argued the problem puts a strain on an already limited housing stock at a time when high house prices are driving low-income earners out of the district.

Yet the proposed tax hike has been met with opposition from some politicians who fear it could devalue homes and undermine businesses which depend on second home owners.

There are also concerns it could lead to second home owners transferring their properties to holiday lets to qualify for discounted business rates.

Cllr Stuart Parsons, leader of the Independent group on the county council, described the move as “one of the stupidest suggestions the Tories have ever come up with”.

He told the Local Democracy Reporting Service the proposals would cause more harm than good as there would be “so many loopholes people could dodge out of paying the premium as they wish”.

Other local politicians have also claimed some areas of the county are suffering more due to holiday lets than second homes.

Harrogate district second home owners face extra council tax charge

North Yorkshire County Council could introduce a 100% premium on council tax bills on second homes within the next two years.

The local authority estimates the charge could generate £1.5m a year in extra council tax payments in the Harrogate district and £14m a year in North Yorkshire overall.

The issue of second homes in the county has risen up the political agenda in recent years, with concerns that they are pricing local people out of buying homes in the places they were brought up.

House prices in the Yorkshire Dales, for instance, are about a third higher than the county average. The average cost of a property in the Dales is nearly £400,000, while the average weekly wage in North Yorkshire is just over £530.

Councillor Carl Les, the Conservative leader of North Yorkshire County Council, said the move depended on new legislation being introduced by the national government and the approval of the local authority.

He said any money raised through the premium would be used to fund council services, including council tax reduction schemes and affordable housing projects.

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The council’s executive will meet on Tuesday to debate the new council tax policy.

Carl Les

Council leader Carl Les

Cllr Les said:

“The issue of second home ownership has emerged as a major issue for many areas of the country, and it is one that we are acutely aware of in North Yorkshire.

“The county is a wonderful place to live and visit, and that has seen the trend towards people wanting to purchase a property either as a second home or a holiday let.

“Any proposed premium on second home owners will be carefully considered and debated by the council before the new legislation is introduced.

“But the revenue generated would prove to be a key source of funding to help to bridge the new council’s budgets and finance vital areas such as homelessness costs and also providing more affordable housing.”

Both the county council and Harrogate Borough Council will be abolished on April 1 next year and be replaced by a new authority called North Yorkshire Council.

Harrogate council opens applications for energy rebate to more households

Applications are now open for thousands of households to apply for their £150 energy rebate from Harrogate Borough Council.

There are around 15,000 households that must fill out an online form because they do not have a direct debit set up with the council.

Other people who have yet to receive the payout because their bank account name does not match the name on their council tax records can also apply on the council’s website.

The payments are to help with soaring energy bills and are being made to homes in council tax bands A-D.

Around a third of Harrogate district households have yet to receive the money, including some of those who will be paid automatically because they pay council tax by direct debit.

Those who are non-direct debit have had to wait until now to apply.

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The council said these households will need their latest council tax bill and bank account details if they want the £150 paid into their bank.

The council added:

“Your rebate will be paid into your bank account within two weeks of a successful application

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

There is further funding set to be made available for households which do not qualify under the initial scheme. This will include people on low income in council tax bands E-H.

Separately, the government has also announced a £200 discount on energy bills for all domestic electricity customers from October.

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 how to apply for the £150 energy rebate go to www.harrogate.gov.uk/energyrebate