Ripon’s parish precept is frozen for second year running

New housing developments in Ripon have enabled the parish precept charged to council tax payers in the city to be frozen for the second successive year.

The parish precept is charged on top of the tax paid to North Yorkshire County Council, Harrogate Borough Council and the North Yorkshire Police, Fire and Crime Commissioner.

It means residents living in a Band D property will pay a parish precept of £71.89 for the year. People in Bands A to C properties will pay less and those in Bands E to H will pay more.

At last night’s meeting of Ripon City Council, the draft budget for 2022-2023 was unanimously approved after independent council leader Andrew Williams told members:

“Because of the increased number of new houses built in Ripon, we are able to raise a levy of £410,902, at no extra cost to the charge payer.”

Photo of Hugh Ripley Hall

Hugh Ripley Hall

The figure represents a 3% increase for the parish council budget, which stood at £400,000 last year and Cllr Williams explained:

“As we are collecting from a larger base, we are able to freeze the precept for the second year running.

“We believe that this is the right and proper thing to do, at a time when families are under greater financial pressure through increased fuel and other costs.”

The bulk of the money will be spent on the queen’s platinum jubilee celebration in June, other public and civic events during the year and items including town hall rent and the management and upkeep of Hugh Ripley Hall and Ripon’s team of hornblowers.

Conservative councillor Mike Chambers, who represents Ripon at city, district and county council level, said:

“I am delighted that there will be no increase in the parish precept and I lend it my support.”

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Harrogate council bosses warn tax rise needed to balance books

A 1.99% tax rise has been backed by Harrogate Borough Council’s cabinet after officials warned some of the authority’s key income streams won’t return to pre-pandemic levels until at least 2023.

Paul Foster, head of finance at the council, told a meeting last night that the rise equates to an extra £5 per household per year and was needed as the authority is still feeling the effects of covid and decades of government funding cuts.

If the proposed increase gets final approval in February, contributions to the borough council for the average Band D property will rise to £255.92.

Mr Foster said last night: 

“Given the impacts of the pandemic, we are provisionally forecasting a budgeted reduction in income of £150,000 in 2022/23.

“And income is not forecast to reach pre-pandemic levels until 2023/24 in the areas of commercial property, planning fees and Harrogate Convention Centre lettings.”

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

These include plans to accelerate a redevelopment of Harrogate Convention Centre, as well as carbon reduction works at the venue and other council-owned buildings.

Mr Foster said: 

“Overall, in order to produce a balanced budget, a net transfer from the budget transition fund of £142,000 is required.

“And finally, a thorough review of reserves has identified that just short of £4.5m can be repurposed, with a recommendation that £2.8m is set aside to fund the acceleration of works at the convention centre, and just short of £1.7m is set aside to support our carbon reduction strategy.”

The tax rise has been proposed as part of the council’s final ever budget before it is abolished and replaced with a new North Yorkshire-wide authority which will take over control of all services from April 2023.

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This will mark the biggest changes to local government in the area for almost 50 years, with elections to the new council set to take place in May 2022.

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

Speaking at last night’s meeting, Cllr Graham Swift, deputy leader and cabinet member for resources, enterprise and economic development at the council, said the authority’s council tax contributions represented “incredible value” and would help keep key services and projects running.

He said: 

“For £255 we not only empty the bins and provide local cleaning services, but also look after parks, gardens, leisure facilities, and health and homeless charity programmes.

“On top of that, we are still able to invest in meaningful activities that improve the district and lives of residents.”

Harrogate council proposes 1.99% council tax rise in final ever budget

Taxpayers are set to be hit with another rise in council tax after Harrogate Borough Council revealed plans for a 1.99% rate increase in its final budget before the authority is abolished.

Officials say the rise – which equates to an extra £5 per Band D household per year – is needed in order to balance the books as the council continues to face financial challenges due to pandemic pressures and more than a decade of government cuts.

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

He 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.”

Under government rules, 1.99% is the maximum amount the authority can raise council tax by from April without a local referendum.

The proposed increase will be debated at several meetings before a vote from councillors in February. If approved, contributions for the average Band D property will rise to £255.92.

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

After rises were agreed last year, average bills in the Harrogate district rose above £2,000 for the first time.

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North Yorkshire County Council is currently consulting with the public about its council tax and social care precept levels for next year.

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

“Putting up council tax is never an easy option for this authority. We have always striven to be moderate in our increases.

“In considering the level of council tax, we must understand and balance the hardship families are currently facing and the added pressure a council tax increase may bring with the need to fund essential services to support the most vulnerable in our communities through this critical period.

“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.”

The coming year will be the county council and Harrogate Borough Council’s last before the merger of all North Yorkshire councils into one new authority which will take over control of all services from April 2023.

It will mark the biggest changes to local government in the area for almost 50 years, with elections to the new council set to take place in May 2022.

Cllr Les added:

“We are currently developing our council plan and budget and encourage residents to have their say on our budget, ambitions and priorities.”

To have your say go to the North Yorkshire County Council website here.

Council warns of ‘enormous financial pressures’ despite government funding

North Yorkshire County Council officials have warned that it faces “enormous financial pressures” despite receiving £10 million in additional funding from government.

The Department for Levelling Up, Housing and Communities, announced that the authority will be granted £26 million in grants for the coming year.

Council officials said the funding was more than forecast due to an increase in funding from the government.

The fund includes core spending grants and funding for adult social care.

However, county council bosses have warned that the authority will still have to find £19 million in savings.

The funding includes:

Ministers said the settlement reflected the extra pressures on local councils, particularly in social care and the covid pandemic.

But Cllr Gareth Dadd, executive county councillor for finance, said the money would already be “accounted for” at this “turbulent time”.

He said:

“The additional money is very welcome. However, this continues to be a turbulent time. We remain in the midst of the pandemic and are responding to the increased pressures this puts on the county’s communities and economy, as well as our own resources.

“At the same time, long-term challenges continue to grow, as we deal with massive pressures in the social care markets and unprecedented levels of inflation and national insurance contributions. This means that as welcome as the extra money is, it is already more than accounted for.”

The move comes as the county council is consulting residents in North Yorkshire on its upcoming budget.

The authority will have the means to be able to hike council tax by up to 4.5% this year, under government rules.

Those in a band D property in North Yorkshire currently pay £1,411.05 in the county council’s share of council tax.

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Cllr Carl Les, leader of the council, said reform was needed on funding for rural authorities as residents “already pay too much council tax”.

He said:

“Putting up council tax is never an easy option for this authority. We have always striven to be moderate in our increases.

“In considering the level of council tax, we must understand and balance the hardship families are currently facing and the added pressure a council tax increase may bring with the need to fund essential services to support the most vulnerable in our communities through this critical period.

“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.”

The county council is expected to outline its budget plan, including council tax, in the new year.

Harrogate council forecasts £6.5m income losses despite covid restrictions easing

Harrogate Borough Council has predicted that covid will wipe millions of pounds off its finances this year despite the hopeful end of all lockdown restrictions.

Finance bosses at the authority have forecast income losses of around £6.5million from areas including Harrogate Convention Centre, leisure centres and planning in 2021/22 after what they described as an already “incredibly challenging” year during the first 12 months of the pandemic.

Speaking at a meeting on Wednesday, Paul Foster, head of finance, said out-turning on budget in February was an “incredible achievement” and that the council would now need to generate around £18.8million in income to do the same this financial term.

He said: 

“I can report that in line with monitoring through the year, we will out-turn on budget. This is despite a net cost of circa £10million that the council faced last financial year as a result of the pandemic.

“To out-turn on budget is an incredible achievement, particularly as we have managed to maintain performance in a number of critical areas – and this is in addition to the council’s response to the coronavirus pandemic itself.

“Key to achieving a balanced budget in 2021/22 is income recovery. We have budgeted for ongoing income losses of £6.5million as a result of covid, but income generation of £18.8million is still required to balance the budget.

“There is a lot to play this year to see how successful we are in keeping to budget.”

Council budgets across the UK have been stretched for some time as a result of years of government cuts, but for many covid has only compounded the problem.

At a time when local authorities have had to spend more on supporting their communities, income streams have been hit hard with little cash coming in and a lot going out.

Some councils have struggled to carry out statutory duties, been at risk of bankruptcy and have had to ask the government to borrow emergency money in order to keep services running.

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In Harrogate, the situation has not been quite as alarming but serious all the same.

At the start of the pandemic, the council scaled back spending to essential areas only before introducing a recruitment freeze and shedding around 60 jobs.

The council has also redeployed many staff into under pressure areas such as bin collections and business support grants, with chief executive Wallace Sampson himself lending a hand to waste collection crews.

The authority has received around £7.8million in emergency government grants, but this has still meant £2.7million of reserve cash has had to be used in to plug funding gaps.

Meanwhile, North Yorkshire County Council – which looks after the vast majority of services including social care, education and highways – is facing a much starker picture with a projected funding shortfall of £59million over the next three years.

Speaking at Wednesday’s meeting, Mr Foster said detailed reports of how Harrogate Borough Council is plotting its way out of the financial pressures of the pandemic will be brought to a cabinet meeting later this month.

He said:

“This report will be finalised this week and published next.

“The out-turn position reflects the support across the council in adhering to the spending controls we put in place, including the recruitment freeze, in response to the financial challenges of the pandemic.

“The delivered savings would not have been achieved without a successful staff redeployment scheme. However, as we move towards business as usual, it is clear that the vacancy freeze is not sustainable and the filling of essential posts is key to our continued success.”

Harrogate council writes off £632,000 in unpaid council tax and rates

Harrogate Borough Council has written off more than £632,000 in unpaid council tax and business rates bills which stretch back almost a decade.

The debts – some of which stretch back to 1993 – were owed for a variety of reasons including taxpayers being untraceable, dead or in prison, and businesses going bust.

Matthew Waite-Wright, revenues and income manager at the council, told a cabinet meeting on Wednesday all attempts to recover the cash had been exhausted and that the amount written off was “minute” in comparison to the £237 million total collections this year.

He said:

“These write-offs are for last year’s debts but also for preceding debts going to back to 1993. Each individual debt has been investigated fully and considered by at least two officers before the decision to write off has been made.

“We would stress that the figure of £632,000, whilst of course is a large number, is minute in comparison to the actual billings at the moment.”

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Harrogate council is not only responsible for collecting its own council tax and business rates charges but also those for North Yorkshire County Council and police and fire services. All figures mentioned also include these public organisations.

A breakdown of the debts written off show almost £339,000 was unpaid council tax bills and around £285,000 was unpaid business rates.

The most common reasons for outstanding payments were old debts which were “unreasonable to chase” and business insolvency. Other reasons included incorrect bills being issued, debtors moving abroad and ill health.

Mr Waite-Wright said in a report that writing off debts is good accountancy practice and would not impact on the council’s spending plans.

He said:

“The council has adequate bad debt provision, and there is no impact on the 2020/21 revenue budget. Identification of bad debt and taking decisions on irrecoverable debt is considered good financial management to ensure the council is utilising its resources effectively.

“The amounts now recommended to be written off are a creditably small percentage of the annual collectable debit.

“The actual collection rate remains high at around 97% for council tax but has fallen to around 92% for non-domestic rates in 2020/21 due to covid.

“However, this has not yet affected the level of write offs but an increase is anticipated in future years.”

Earlier this week Harrogate Borough Council apologised for wrongly sending letters to residents threatening them with court action for not paying council tax after incorrectly billing them in May this year. 

Harrogate council apologises after wrongly threatening council tax payers with court

Harrogate Borough Council has apologised for wrongly sending letters to residents threatening them with court action for not paying council tax.

A Harrogate resident, who asked not to be named, alerted the Stray Ferret to the council letter dated May 21.

The letter asked for three months of council tax instalments and threatened a court summons, plus costs, if payment wasn’t received by Friday this week.

However, only two months of council tax, April and May, were due by that date, which meant the demand for June’s payment was made prematurely.

The source claimed the local authority’s council tax department had been “overrun with angry council taxpayers” who had received similar letters.

He described the episode as “an administrative cock-up”, adding:

“At a time when many people are struggling financially and being faced with a council tax increase above the rate of inflation, I wonder why Harrogate Borough Council didn’t check their facts more carefully before acting in such a heavy-handed way?

“Even if the figures were correct in the first place they should be showing more consideration towards people and trying to help rather than intimidate them.”

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A council spokesman said:

“Unfortunately, residents who receive council tax reminder notices, have this month been issued with the wrong payment figure. It incorrectly included the June instalment figure as well as May.

“Anyone who received this reminder notice will receive a replacement notice in the next couple of days. We’d like to apologise for any confusion or inconvenience this has caused.”

The Stray Ferret has asked how many people received the demand for June’s payment but the council has so far declined to reveal the information.

Council tax increase ‘most difficult decision ever’, says council leader

The leader of North Yorkshire County Council has said increasing council tax during the covid pandemic is the “most difficult decision” the authority has made.

It was confirmed today that a band D property in the Harrogate district will see its bill increase to £2,007 from this April. It is currently £1,947.

County councillors voted for the 3.49% hike, which includes 1.5% for adult social care, in its share of council tax at a meeting today.

Harrogate Borough Council and North Yorkshire Police, Fire and Crime Commissioner also agreed increases in their rates earlier this month, which means the final sum is now known.

A breakdown of the potential council tax bill for Harrogate district in 2021/22.

A breakdown of the council tax bill for the Harrogate district in 2021/22.

Cllr Carl Les, leader of the county council, told councillors that it was a “difficult balance to strike” to ask people to pay more while the economy was struggling.

He said:

“I think this is the most difficult decision any of us have had to make at this council. 

“Never has the local economy been so hard hit by this dreadful pandemic, but equally never has our community been so tested, and our services so needed.

“We must strike that difficult balance between what we need to do the job, and what our residents can afford to pay.”

But Cllr Bryn Griffiths, speaking on behalf of the Liberal Democrat group, criticised the national government for failing to publish details of its reforms to adult social care, which has prompted councils to increase council tax to pay for it.

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He said the precept added onto the council tax bill to pay for the service may be “the final straw” for some people.

Cllr Griffiths said:

“Due to the covid pandemic, many of our residents are in dire financial straits and will find it difficult to pay the proposed increase in council tax.

“Increasing the social care precept to cover the government’s inadequacies in what is a national problem will be the final straw for many.”

Cllr Stuart Parsons, leader of the North Yorkshire Independents, said the government was “transferring the blame” on taxation instead of solving funding problems in areas such as social care.

Meanwhile, Cllr Eric Broadbent, leader of the Labour group, said he “reluctantly” supported the increase, but added that council tax was “regressive” and “penalised” those on low incomes.

The vote to increase council tax and pass the authority’s budget was passed with 59 votes in favour, two against and four abstentions.

Cost of covid

So far, the county council has spent £80 million responding to covid.

It has responded by hiking council tax and dipping into its reserves to balance the books.

The county council will use £8.2 million of its own funds to offset a projected shortfall next year, but officials have warned it cannot continue to use its reserves in the long run.

Harrogate council backs council tax hike

Councillors on Harrogate Borough Council have backed a £5 increase in council tax for this coming year.

The hike will see the council’s share of council tax rise to £250.92.

It means taxpayers in the district could see their overall bill, which includes rates for county council and police and fire services, increase to more than £2,000 in 2021/22.

Councillors voted for the increase at a full council meeting tonight as part of the authority’s budget plans.

Cllr Graham Swift, cabinet member for resources on the borough council, said the budget was put together despite coronavirus impacting on the council’s finances.

Cllr Swift said:

“There is no doubt for all people, whether you are a council member or a council staff officer or a member of the public, that 2020 and 2021 are time periods of incredible change caused predominantly by the coronavirus.

“It is because of the coronavirus that Harrogate Borough Council have had significant impact to our budget and significant changes to way in which we are financing the budget.”

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It comes as council has forecast a cost of £5.9 million this year due to the coronavirus pandemic.

Officials said the authority had lost income in car parking, sport and leisure and the Harrogate Convention Centre.

Meanwhile, councillors also voted for an amendment to the budget to increase pay for the lowest employees to £9.50 per hour.

A breakdown of the potential council tax bill for Harrogate district in 2021/22.

A breakdown of the potential council tax bill for Harrogate district in 2021/22.

Elsewhere, North Yorkshire County Council is set to decide on a 3.49% increase in their share of council tax next week.

It would see the authority’s share rise to £1,411.05.

Cllr Carl Les, leader of the county council, said the move is one of the most difficult decisions for the council in recent years.

He said:

“I don’t think there has ever been a more difficult time for us to do this exercise.

“Never have our services been more needed, but equally never has the economy and society been under such pressure.

“So we really need to get the balance right between what we need to deliver in services and what the community of North Yorkshire can afford to pay for those services.”

How much Harrogate council taxpayers could be paying in 2021

Harrogate district taxpayers could face paying a council tax bill of more than £2,000 this coming year.

Officials at Harrogate Borough Council, North Yorkshire County Council and North Yorkshire Police, Fire and Crime Commissioner are set to decide on their proposals in February.

In total, if approved, the final bill for the 2021/22 financial year would come tot £2,007.17 – a 3% increase on last year.

Cllr Carl Les, leader of North Yorkshire County Council, said there had “never been a more difficult time” to ask the public to pay more for council services.

Each authority has tabled an increase in its share and will vote individually on its proposal.

A breakdown of the potential council tax bill for Harrogate district in 2021/22.

A breakdown of the potential council tax bill for Harrogate district in 2021/22.

Local town and parish councils will also levy a parish precept on the bill..

In Ripon, local councillors decided to freeze the precept for 2021/22 meaning residents will pay £71.89 to the city council.

Meanwhile, Knaresborough Town Council has agreed a 1.99% increase in its precept to around £25 for a band D property.

Uncertainty over council funding

The hike in council tax comes as local authorities face a strain on resources amid the coronavirus pandemic and uncertainty over future funding.

Gary Fielding, corporate director of resources at the county council, told councillors recently that there “had never been more uncertainty than there is at the moment” for councils.

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Meanwhile, Cllr Les told an executive meeting of the county council that there had never been a tougher time for the council to make a decision on increasing council tax.

He said:

“I don’t think there has ever been a more difficult time for us to do this exercise.

“Never have our services been more needed, but equally never has the economy and society been under such pressure.

“So we really need to get the balance right between what we need to deliver in services and what the community of North Yorkshire can afford to pay for those services.”

He added that the council will continue to lobby government for fairer funding following a decade of cuts to local authority grants.

The pandemic has forced councils to think more carefully about finances.

So far, the county council has spent £80 million responding to covid. Meanwhile the borough council faces a £5.9 million cost due to losses in car parking and leisure centre revenue.

This has left officials proposing to hike council tax and dip into reserves to balance the books.

The county council plans to use £8.2 million of its own funds to offset a shortfall next year, but officials have warned it cannot continue to use its reserves in the long run.

North Yorkshire County Council, Harrogate Borough Council and North Yorkshire Police, Fire and Crime Commissioner will make decisions on their budgets next month.