Figures reveal exactly how much money council has received from Harrogate Spring Water

Harrogate Borough Council has received almost £500,000 from Harrogate Spring Water since 2017 as a share of the company’s annual turnover, new figures reveal.

The council owns the land where the company is based on Harlow Moor Road and receives £13,000 a year in ground rent.

Harrogate Spring Water also has to pay a percentage of annual turnover to the council. This is known as turnover rent.

The turnover rent agreement was drawn up in the early 2000s when the council granted planning permission to build a bottling plant on land leased to the company.

However, the figure has never been made public.

Two-year battle

For almost two years, the Stray Ferret has tried to find out exactly how much the council benefits from the success of the Danone-owned company.

We first asked the question to HBC in a freedom of information request in January 2021, almost two years ago.

But the council refused to tell us. It said:

“This information is deemed to be of commercial value and, if disclosed, may impact on the council’s ability to negotiate and harm its legitimate interests, putting it in a commercially disadvantageous situation.”

We then requested that HBC undertake an internal review of this decision.

However, Joanne Barclay, acting chief solicitor at HBC, came to the same conclusion, adding “confidence may be eroded if commercial rents were to be disclosed”.

In summer 2021, we submitted a complaint about the council’s decision not to disclose the sum to the Information Commissioner’s Office (ICO).

ICO is an independent government body that promotes openness within public bodies.

After a long delay due to a backlog, it investigated HBC’s refusal and asked the council to look again at the Stray Ferret’s question. It has now decided to publish the figures for the last five years.

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Finally publishing the figures

Earlier this year, the BBC’s Local Democracy Service revealed that HBC receives 0.5% of the company’s annual turnover.

It estimated the council received £853,033 over an 18-year period, however, new information suggests that is likely to be a higher figure.

Since 2017, HBC has received £495,000.

Company accounts published on Friday revealed turnover has returned to pre-covid levels after dipping significantly due to the pandemic.

Each year, the council has received the following sum from Harrogate Spring Water in turnover rent:

2017  – £92,811.87

2018  – £138,026.18

2019  – £91,153.15

2020  – £152,332.02

2021  – £21,995.79

Global brand

Harrogate Borough Council and Harrogate Spring Water’s histories are intertwined.

Water has been bottled in Harrogate for centuries but in the early 1990s Harrogate Spa Water, as the company was previously known, was selling just 1,000 bottles of water a year.

The company’s fortunes changed in the late 1990s when HBC, run then by the Liberal Democrats, identified an opportunity to explore water resources at the current site on Harlow Moor Road.

Harrogate Spring Water has since gone from strength to strength to become a global brand.

The relationship between the two organisations has come into focus due to Harrogate Spring Water’s attempts to expand its bottling plant into Rotary Wood.

The council has always maintained that its status as planning authority and Harrogate Spring Water’s landlord are separate.

A Harrogate Borough Council spokesperson said:

“We have had a base rent and turnover rent agreement in place with Harrogate Spring Water Ltd since 2002.

“As with all of our rental agreements, the money generated is used to help deliver valuable front-line services across the Harrogate district.”

Hot Seat: the Harrogate man with ambitious plans for Castle Howard

Harrogate man Rod Findlay takes a minute out of each day to take stock of where he is — working with one of the best views of one of Britain’s finest stately homes, Castle Howard.

Breathtaking as the estate is, with more than 200 listed buildings and monuments set over around 8,800 acres, there is much to do to ensure Castle Howard retains its prestigious reputation for generations to come.

The estate, 15 miles north of York, has been home to the Howard family for 300 years and is rich in history. The Great Fire of 1940 devastated the building decades ago and, more recently, covid has proved hugely disruptive.

Castle Howard’s worldwide reputation, enhanced by its many screen appearances in films such as Brideshead Revisited, meant it relied heavily on international visitors, mainly from China, so covid restrictions hit visitor numbers dramatically.

With every cloud comes a silver lining, though. Covid also made people want to seek out local places of beauty they had previously taken for granted, and the challenge now is to capitalise on that.

Mr Findlay started his career in law before moving into leadership roles in sports such as rugby league, golf and cycling. His current role as chief operating officer and company secretary at Castle Howard presents numerous challenges. He said:

Rod Findlay enjoys nothing more than a walk with his dogs.

“It’s really varied. You know, one day you are talking about Santa Claus and the next day you are talking about the long-term strategic vision for Castle Howard.

“That is interesting to me. We have a really ambitious plan to turn the house around. In the last few years we have done some work to look at the heritage deficit here.

“To look at Castle Howard, it’s a beautiful house but it needs investment.

“The mausoleum on the outskirts of the estate needs £18 million, the house needs £50 million, the gatehouse needs £15 million.

“It is a 300-year-old house so it needs continual investment. This is a long-term vision and requires a major change in our approach as we won’t get that money by putting up the price of scones.”

More than a house

Profit from the estate is invested in areas such as reports, conservation and restoration.

Castle Howard posted a loss of £2.1 million in its 2020 financial year, but recorded a profit the following year of £5.7 million.

A major reason for that quick turnaround was £7.5 million in upwards property revaluation on Castle Howard’s investment property portfolio, which is made up of the estate, residential accommodation and the holiday park.

So if an opportunity arose to expand its property portfolio in areas identified for development in the Ryedale Local Plan, Castle Howard would be keen to get involved.

The estate has bid to develop four areas of its 8,800 acres, which is made up largely of farmland and woodland.

There is, Mr Findlay says, a severe need for housing in the area surrounding the estate:

“We have a waiting list to get into our properties of 180 people. So it’s clear there are a lot of people who want to live and work in the area but they can’t find those opportunities.

“So if we increase the housing stock there’s another benefit as we can invest that money back into the estate, which also benefits the local economy.

“The first job is to get these properties included in the local plan, as it is currently listed as farmland. Then we can start work with a developer to bring them to life.

“We are keen to keep some control over the look and feel of these properties while the developments need to be responsible and sustainable.”

Can Harrogate improve its events?

Mr Findlay, who is originally from Newcastle, moved to Harrogate in 2014.

He has always enjoyed living in the town but the open spaces of Valley Gardens, Crimple Valley and the Stray enhanced his appreciation during covid lockdowns.

Castle Howard is embracing new kinds of events.

Mr Findlay believes the town should embrace more larger events. He said:

“I do think those large events will drive people.

“We certainly have seen that at Castle Howard where, we have attracted visitors we perhaps otherwise wouldn’t get with events like Cafe Mambo, Duran Duran and the Chemical Brothers.

“This attracts a demographic we’re not necessarily seeing. Harrogate shouldn’t shy away from those events, even if the town had a mixed experience like with the UCI.

“People should remember the positive benefits of those large scale events and I feel we should be using our incredible public spaces to that end all year round, weather depending.”

What next for Castle Howard?

Building work began at Castle Howard in 1699 but it took more than 100 years to complete, spanning the lives of three earls.

The estate has seen a lot in that time. While Castle Howard works well as a visitor attraction with around 250,000 expected annually, it’s clear the leadership will not rest on its laurels.

Mr Findlay and his team work for the Howard family, specifically Nicholas Howard and Victoria Barnsley, who are heavily involved in the business and its direction. He said:

“The family wants to make sure this is a place welcoming visitors for many years to come. It’s that long term vision which is important, we are talking about developments we will never see.”

Christmas is coming to Castle Howard.

There are lots of reasons to visit Castle Howard this year with Stately Superstitions: Eerie Encounters at the Castle from October 21 to 31 and Into the Woods: A Fairytale Christmas from November 12 to January 2.

Value of North Yorkshire pension fund secure following crisis, says council

North Yorkshire County County has said the value of its £4.9bn pension fund is secure.

It follows this week’s unprecedented move by the Bank of England to step in and calm markets after fears that some pension funds were at risk of collapse.

The bank ended up pledging to buy £65bn of government bonds, which many pension funds invest in, after their value plunged following last week’s government mini-budget.

To pay for retirement pensions, staff from Harrogate Borough Council and 30 other district, city and town councils in the county pay into the North Yorkshire Pension Fund through their salary.  The fund is administered by North Yorkshire County Council.

According to the pension fund’s latest annual report, the fund has £141m in government bonds, also called gilts.

However, the investment is worth just 3.1% of the total portfolio. The majority of the fund has been invested in shares and other financial products.

North Yorkshire Pension Fund treasurer Gary Fielding said:

“We are monitoring the current situation closely. Although the UK financial market and the value of sterling have been under pressure, this has had a very limited impact on the fund. 

“The investments are spread across the globe and in a range of assets classes, providing the fund with a high degree of resilience.”

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Harrogate BID manager to leave role

Harrogate Business Improvement District manager Matthew Chapman will leave the organisation in November to take up a new position at North Yorkshire Council.

Mr Chapman, who took up the role in May last year, was previously Leeds BID operations manager in 2016 before becoming Huddersfield’s BID manager in November 2019.

Businesses within Harrogate’s town centre pay the BID 1.5% of their rateable value a year on top of their usual business rates.

Harrogate BID brings in around £500,000 from local firms, which it spends on projects to improve the town and increase the number of visitors.

During Mr Chapman’s 18 months in Harrogate, BID campaigns include power washing 80,000 square metres of the town centre, painting drab walls with colourful murals and buying over 500 pieces of outdoor furniture for businesses to use.

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He is set to take up a managerial role within North Yorkshire Council, which is the new council that will replace Harrogate Borough Council and North Yorkshire County Council from April.

Harrogate BID chair Sara Ferguson paid tribute to Mr Chapman in a statement and said the search for his replacement had begun.

“Since joining us in May 2021, Matt has been a highly effective, dedicated and extremely popular BID manager. I have certainly enjoyed our working relationship, and that is echoed by all my fellow directors.

“During his time with us, he has become one of the most recognised faces in the town centre. He’s built terrific relationships with the district and county councils, business organisations and business owners and their employees.

“We will be extremely sorry to see Matt go, but the good news for us, and the town centre, is that he will continue to play a role within the organisation, offering guidance and support to the board and BID team, within a part-time role to aid the recruitment process and ensure a smooth transition and handover.

“The BID team is now primed to continue delivering the high impact projects which benefit the town as a whole, and the job of finding Matt’s replacement has now begun.”

Harrogate council to promote Christmas with social media influencers again

Harrogate Borough Council‘s tourism body, Destination Harrogate, will use social media influencers again this year to promote the town’s Christmas festivities.

Julia Lumley, place marketing manager at Destination Harrogate, gave a presentation to Harrogate BID members at the Yorkshire Hotel on Thursday. She described how the body will be trying to attract visitors to the town during November and December.

Initiatives include a dedicated Christmas website where businesses can upload events, a printed guide, online campaigns, videos and photography, as well as competitions.

Ms Lumley also confirmed Destination Harrogate will be paying influencers to visit the town throughout the Christmas period.

The aim is for influencers to help reach audiences in a way that is more organic and personal than traditional advertising campaigns.

Last year, the Stray Ferret revealed Destination Harrogate paid influencer Heather Cowper £700 to make several posts about Christmas in Harrogate.

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But her posts performed poorly, raising questions over whether the fee represented value for money. A Liberal Democrat councillor branded the spend a “waste of money”.

However, the criticism hasn’t put Destination Harrogate off using influencers again.

On Friday, it Tweeted that it recently used vlogger Amy Berry to promote the town. She has 135,000 followers on Instagram.

Ms Berry’s video about a trip to Harrogate has proved to be popular. It includes visits to the Turkish Baths and Rudding Park and has been liked over 1,200 times in 24 hours.

Although Destination Harrogate will return to using social media influencers over Christmas, another campaign from last year won’t be returning.

Following a question from a member of the audience at the BID meeting, Ms Lumley said the £5,000 snow globe at Kings Cross will not be used again.

Delayed decision on Knox Lane housing plans set for October

Councillors will now decide whether to approve plans to build 52 homes at Knox Lane on October 4.

The original date of September 13 was delayed following the Queen’s death.

Harrogate Borough Council postponed all council meetings that were due to take place this week as a mark of respect.

North East property developer Jomast wants to build the homes on a field off Knox Lane in what has been a controversial and long-running planning application.

Council officer Andy Hough has published a 30-page report for councillors that says the development should be given the green light once certain conditions are met and there being no objection from the local flood authority.

In his conclusion Mr Hough said:

“The site is located within a sustainable location for housing and has been designed in such a way that the layout takes into account the constraints of the site, whilst ensuring that it retains and builds upon the natural features of the site.”

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The plans have faced fierce objections from local residents in Bilton.

To many living there, the fields on Knox Lane represent one of the last green spaces in the area.

At the time of publication, there have been 311 objections to the plans from residents and zero submissions of support.

Harrogate Spring Water ‘finalising’ latest expansion plans

Harrogate Spring Water has said it is finalising the latest expansion plans for its bottled water plant – more than a year and half after previous proposals were rejected following widespread opposition in the town.

The firm held a consultation on plans for its Rotary Wood site this summer and said it would now provide a further update “in the coming weeks”.

That same phrase was used by the Danone-owned company in January 2021 when it said new designs would be revealed “in the coming weeks” after its larger expansion plans were refused by Harrogate Borough Council.

Twenty months on, there is no new application from the firm.

Harrogate Spring Water was first granted outline permission to expand in 2017, however it failed to get approval for final designs which were 40% larger than original plans and would have seen more trees chopped down at Rotary Wood which was planted by children 16 years ago.

The company later announced it would revert back to its original plans and has now released a new statement this week.

A company spokesperson said:

“We started our public consultation process in June because it was important for us to ensure that, as we look to grow, create further job opportunities and continue to support the local and regional economy, we listen to the local community.

“This process has included individual meetings with community stakeholder groups as well as an open public consultation event, allowing people to have their say on the design and landscaping of the proposed extension and surrounding land.

“We have taken these views on board as we work towards finalising our plans for the reserved matters application.

“We anticipate providing a further update on this matter in the coming weeks.”

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More than 400 objections were lodged against the larger expansion plans which councillors claimed put “profit and plastic before impact on the environment” as they voted for refusal in January 2021.

Harrogate Spring Water previously made a commitment to replace felled trees at a rate of two to one and has since said it is looking at ways to “achieve net biodiversity gain” at its site.

Harrogate Spring Water

Harrogate Spring Water’s headquarters.

It also said the expansion would create 30 jobs and that there is “potential” to make Rotary Wood more accessible to the public.

Speaking earlier this year, the company’s managing director Richard Hall said:

“We feel it is vital for us as a business to take our environmental responsibilities seriously.

“We also want to work in partnership with the local community on this.

“We want them to help shape the woodland into the resource which they would like to see and ensure our extension blends in as well as it can into the surrounding area.”

Valley Gardens sculptures to be removed today

The kiwi and marlin sculptures are being removed today from the New Zealand garden in Valley Gardens due to rot.

The garden commemorates Harrogate’s twinning with Wellington and the country’s airmen being stationed in the town during the Second World War.

Chainsaw sculptor Mick Burns carved the marlin, kiwi and a carved Maori bench in 2010.

In 2020, suspected vandals also ripped chunks out of the Kiwi bird and hastened its decline.

Friends of Valley Gardens, a charity that helps Harrogate Borough Council look after the park, said:

“It was always known that when these sculptures were carved that they had a limited life, the softwood rots naturally, but they will be sadly missed.”

The Stray Ferret has asked Harrogate Borough Council if it has plans to replace the sculptures.

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Bilton garages set to be demolished for housing

Harrogate Borough Council‘s plan to demolish 10 garages at Woodfield Close in Bilton and build two social homes has been recommended for approval.

The council owns and rents out garages across the district and has increasingly looked at the pockets of land as a way to build social housing.

Harrogate is one of the most unaffordable places to live in England, with average house prices around 11 times the median annual income of people who work in the district.

There are currently 1,867 households on the social housing waiting list.

In planning documents, the council said the development would help to provide “much needed affordable homes”.

The council earmarked the site for housing in August 2021. In total, it has 26 garages.

In November last year, the council was awarded £50,000 of government cash to bring forward housing on the garage site at Woodfield as well as at Park Row in Knaresborough.

The council’s planning committee will meet on Tuesday to decide whether or not to approve the Woodfield proposal.

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The report to councillors says:

“The provision of two affordable dwellings is a modest addition to the district’s housing land supply.

“The design of the dwellings would respect local distinctiveness and there would be no significant harm to local residential amenity, or highway safety.

“The housing development would provide off-street parking and be a more efficient use of the site.

“The proposal would comply with the provisions of the development plan and national planning policies and guidance, and should be supported.”

North Yorkshire County Council hits back at ‘dilution of democracy’ criticisms

A council overseeing sweeping changes to local government in North Yorkshire has hit back at criticism of the proposed overhaul, saying it would represent the biggest strengthening of democracy in generations.

Leading members of North Yorkshire County Council’s executive dismissed claims that hundreds of elected community representatives on district and borough councils are set to be replaced by just two councillors on a mayoral combined authority, saying the two levels of local government were not comparable.

Concerns were initially raised by the county’s borough and district councils over residents’ representation ahead of proposals for a single unitary authority being agreed.

Recent weeks have seen opposition members repeatedly highlight how proposals to create a new tier of local government in a mayoral combined authority for North Yorkshire and York include plans to have two decision-making members from the county and two from the city, alongside an elected mayor.

The proposals being consulted on this autumn would make the county, with a population of more than 600,000, and York, which has more than 200,000 residents, equally represented on the mayoral combined authority.

Speaking ahead of a public consultation over the proposed devolution deal as part of the changes, a number of councillors have stated the overhaul would erode residents’ ability to shape key decisions.

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Earlier this month Independent councillor John McCartney, who represents Osgoldcross, said many residents engaged in local democracy felt “irked and discombobulated” as their local councils were being swapped for a remote one in what he described as “a power grab” by County Hall in Northallerton.

However, it is understood senior North Yorkshire figures are comfortable with the disparity in representation as they are keen to foster a partnership with their York counterparts, and believe a fair balance will be struck by the elected mayor.

The authority’s deputy leader, councillor Gareth Dadd, told a meeting of the executive yesterday claims that the devolution deal would lead to “a dilution of democracy and that the world as we know would cease to exist” were far from reality.

He said:

“In my view it is an absolute strengthening of democracy.

“I suspect a mayoral election will take place in 2024 and the 800,000 good folk of York and North Yorkshire will have the ability to make a choice about who is actually heading up the spending of that extra money that was decided its course in Westminster, County Hall and the Guildhall.

“It will be the biggest strengthening in democracy, in my view, that we have seen in generations for this part of the world.”

Executive member for climate change and customer engagement Councillor Greg White added while the extra funding and greater discretion over the spending of public money from devolution in North Yorkshire and York was to be welcomed, the real prize would be in having an elected mayor who could deal directly with government.