County council proposes 3.49% council tax hike

North Yorkshire County Council looks set to increase council tax by 3.49%, which would increase its share of the bill to £1,411 for an average band D property in 2021/22.

The proposal, which has been recommended by council officers, includes a 1.99% increase in general council tax and a 1.5% increase in the adult social care precept.

County council bosses have also proposed to use £8.2 million from its own funds to offset a shortfall next year.

It comes as the council faces financial pressures due to coronavirus and loss of government funding.

The authority has estimated a shortfall of £59 million by 2023/24 and has already spent £82 million in responding to the pandemic.

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A report due before senior councillors next week written by Richard Flinton, chief executive, and Gary Fielding, corporate director for strategic resources, said the county council faces uncertainty in the coming year.

It said the council faces various risks, including a lack of funding beyond March 2021, a likely increase in demand for services, potential rising costs, a need for further savings and the potential reorganisation of local government in the county.

The report added that while continued use of reserves was not sustainable, it will be a “crucial component” for the upcoming budget in light of the coronavirus crisis and other uncertainties. It added:

“The council has performed well in responding to austerity and has taken earlier decisions in order to ensure that it is ahead of the curve and not pushed into short term decisions.

“A good level of reserves has been maintained and this will now be a crucial component of the budget strategy.

“Given the essential emphasis on responding to covid, recovering from covid, preparing for local government reorganisation and diminishing returns on savings programmes after a decade of austerity, there is much less scope for new and significant savings proposals.

“Reserves are therefore key to ensuring that a medium term approach to planning can take place.”

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

“We hope to be clearer later in the year about the legacy of covid, the government’s decision on local government reorganisation in North Yorkshire and the future of council funding beyond 2022.

“The times have never been so uncertain, and given these uncertainties it is critical that the council maintains as much flexibility as possible in order to protect vital services whilst being able to respond to further potential shocks.

“We understand that residents are facing many difficulties in the light of covid. We also understand just how vital some of the council’s services are to the most vulnerable in society.”

Senior councillors on the authority’s executive will decide whether to refer the budget plan to full council on January 26.

The final council tax bill will be based on sums demanded by Harrogate Borough Council and the North Yorkshire Police, Fire and Crime Commissioner as well as the county council.

The news comes as Harrogate Borough Council has proposed to increase its share of council tax by £5.

Julia Mulligan, North Yorkshire Police, Fire and Crime Commissioner, is expected to reveal the precepts for both the fire and police service at a later date.

 

Ripon City Council freezes parish precept

Ripon City Council will not be increasing its parish precept for the 2021-2022 financial year.

In 2020-2021 council taxpayers in the city were charged £71.89, on top of the tax paid to North Yorkshire County Council and Harrogate Borough Council.

The precept in Ripon provided a total fund of £400,000 last year.

A total of £100,000 from next year’s budget is being allocated for public events from summer onwards in the hope that coronavirus will be under sufficient control by then to allow them to go ahead.

Money is also being set aside for the renewal of children’s play equipment at Quarry Moor Park and external decoration of Hugh Ripley Hall – the building on Skellbank named in honour of the city’s first mayor.

City council leader Andrew Williams told the Stray Ferret:

“With the current covid crisis and the impact it is having, we decided to keep the precept at the same level as last year.

“It has been a difficult time for everybody with three lockdowns, causing disruption to, among other things, the city’s retailers and the education of children.

“In addition, public events that have been a feature of life in Ripon over many generations had to be cancelled because of the coronavirus.

“However, we must look to the future and make plans and allocate prudent funding that enables us to move forward safely when the lifting of restrictions allow.”

Ripon Christmas lights were switched on last night.

Ripon’s 2020 Christmas lights were extended after an additional £65,000 from the parish precept was spent on them last year.

During 2020, the council set aside £65,000 for a number of public and civic events, including the 75th anniversary celebration of VE Day, Saint Wilfrid’s Day procession, summer bank holiday entertainment, Remembrance Sunday and Christmas and New Year festivities — all of which had to be cancelled.

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The parish precept money, that would have been spent on these events and others, was subsequently diverted to pay for Ripon’s Christmas lights to be extended to help retailers and make city streets more attractive.

That move attracted criticism from some people who thought the money could have been better spent by providing direct financial support for retailers and other businesses affected by the pandemic.

 

 

Harrogate council proposes council tax hike

Harrogate Borough Council is to propose a £5 increase in council tax next year — the maximum amount permitted.

The proposed £5 hike would see the average band D property bill increase from £245.92 to £250.92.

The local authority, which is planning its budget for 2021/22, generated £15.6 million in council tax in the current financial year.

If the £5 increase goes ahead, it will receive an additional £392,000, bringing the total to £16 million.

The council also plans to make £1.14 million spending cuts to balance its books.

This would largely come from a review of its park and environmental services department and by setting up a new company to run leisure facilities.

The £5 increase represents the most a district council can propose for council tax — a 2% increase or £5, whichever is highest.

Anything further would require a local referendum.

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In a report due before senior councillors this week, Paul Foster, head of finance at the borough council, said the authority faced “unprecedented financial determinant” due to the pandemic.

He said:

“The financial implications are challenging to estimate with certainty as there continue to be a number of unknowns.

“From how long, and to what extent, national and local restrictions will continue to what measures will remain to combat the spread of virus, to what recovery will look like, such as how our customers will behave over time.”

Mr Foster added the council has “not been immune” to funding cuts from central government and has seen its general grant allocation reduced by £8.2 million since 2010.

The budget proposal is set to be discussed at a cabinet meeting on January 6 before going before full council at a later date.

£27 county council rise

It comes as North Yorkshire County Council and North Yorkshire Police, Fire and Crime Commissioner are expected to outline plans for their share of council tax this month.

Last month, county council officials said they were considering a 1.99% increase — equivalent to a £27 rise.

The move comes amid pressures from coronavirus and cuts in funding from central government.

The county council had anticipated a funding gap of £186 million by next year due to austerity. However, it has since found £173 million in savings.

Now the authority needs to find £103 million over the next three years to cover loss of central government funding.

County council leaders warn of council tax rise to cover covid costs

North Yorkshire County Council leaders have said extra funding from the government isn’t enough to cover covid costs so local residents may have to foot the bill.

The county council is set to receive a further £10.8 million to cover the costs of the pandemic next year. But having already spent an additional £80 million this year it is falling short.

The council tax covers services offered by district and county councils, such as social care and education. Because the pandemic has increased costs the government will allow councils to up their taxes next year.

County councils that deliver social care, like North Yorkshire, can now up their taxes by 3%.

County council leader Cllr Carl Les said:

“We predict there will be a shortfall of funding of £75m over the next three years.”

“We will also have to consider levels of council tax and balance the need to fund essential services through this critical period whilst also recognising the increased pressure that this will put on the tax payers of North Yorkshire.

“Government is going to have to confront the longer term funding solution for social care and local tax payers should not be expected to meet the gap.”

The £10.8 million also provides an Income Guarantee Fund which will see the government compensate authorities for 75% of the reductions in council tax and business rates, due to covid.

All of the measures are part of the government’s local government funding settlement for 2021/22.

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

“We continue to feel aggrieved that residents in this county pay too much council tax particularly in comparison to London.

“We urgently need the Government to address the issue of fairer funding for rural and shire counties which face the largest funding gap and have been historically underfunded and for North Yorkshire’s residents who pay more council tax than their urban counterparts.”

‘Significant increase’ in requests for Harrogate council tax reductions

Harrogate Borough Council has seen a 400% increase in the number of caseloads for council tax reduction amid the coronavirus pandemic.

In a performance report, council officers said the caseloads had “increased significantly” in the first quarter of the year along with cases of housing benefit.

A report before senior councillors this week put the increase down to more people applying for reductions to the council.

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It said:

“Time taken to process new council tax reduction and housing benefit claims have been included in this exception report as caseloads for both performance indicators have increased significantly as a result of the pandemic and people seeking ways to help their situations. 

“For example, the case load for new council tax reduction increased by 400%”

It comes as the council received £863,157 from government this June to help reduce bills for vulnerable people by £150.

As part of the support package, those who already qualify for the council tax reduction scheme would see their bills reduced.

At the time, Wallace Sampson, chief executive of the authority, said the council was supporting those who are the most vulnerable.

Council misses debt recovery target by more than half

Harrogate Borough Council failed to meet targets for council tax collection, business rates and debt recovery this past year – which included one invoice worth £180,000.

According to a performance report due before the authority’s cabinet, the council missed its debt recovery target by more than half as just 18% was recovered against a target of 60%.

The authority said the performance was “significantly below” target. A total of £296,000 was referred to legal services to be recovered, of which £180,000 came from one invoice.

Officials said in the report that payment terms have been negotiated on the invoice and that they expect to recover the sum.

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Meanwhile, the borough council collected 97.9% of council tax against a target of 98.3%.

The authority also missed its business rates collection target by 1%.

Council bosses put part of the performance down to a slowing of collection in March when the country was put into lockdown amid the coronavirus outbreak.

Further support for those struggling to pay their council tax was revealed last week when the council offered to cut bills for vulnerable rate payers by £150.

It comes as the council has been hit with a deficit of £15 million amid the pandemic, part of which is down to a loss of income due to lockdown.

Senior councillors are set to discuss recovery plans tonight, which will include reviewing the authority’s budget and reserves.

Vulnerable Harrogate council taxpayers to see £150 cut in bills

Council taxpayers in the Harrogate district who are struggling to pay their rates will receive a £150 cut in their bills amid the coronavirus pandemic.

Harrogate Borough Council will reduce the bills as part of a £500 million hardship fund announced by the government back in March.

The authority has received £863,157 from the Ministry of Housing, Communities and Local Government, based on an estimated 4,000 council taxpayers who receive support for their bills.

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As part of the support package, those who already qualify for the council tax reduction scheme will see their bills reduced.

In a report before the council’s cabinet, Wallace Sampson, chief executive of the authority, said the council was supporting those who are the most vulnerable.

Mr Sampson added that every home which is eligible will receive the support “in the first instance”. He said:

“The covid-19 pandemic has set an unprecedented challenge which the council has responded to well through its support to some of the most vulnerable in our community, as well as to those businesses that have been hit the hardest through the crisis.”