North Yorkshire Council makes ‘first step’ towards £67m of savings

North Yorkshire Council says it has already saved taxpayers £3.8m a year in the transition from eight councils to one by cutting the roles of 24 senior managers.

The council’s finance boss, Cllr Gareth Dadd, underlined that none of the senior staff would be paid enhanced severance packages as the Conservative-run authority works towards a total of £67m of efficiencies by uniting the county, district and borough councils.

The comments follow critics of local government reorganisation questioning the amount of staff salary savings that it would achieve.

Cllr Dadd’s remarks come just weeks after severance packages of £770,000 were paid to four senior officers at Hambleton District Council because they did not wish to work for the incoming unitary authority.

A highly charged meeting of the district council last November heard the directors were fearful about the ring-fenced roles they would be given at North Yorkshire Council, despite no decisions having been made about their jobs.

A meeting of the unitary council’s executive heard the total exit costs for three senior management as a result of the transition had been estimated at £513,000, which had been raised as one of the former district councils had an enhanced redundancy scheme.

However, the changes had achieved £332,000 savings of salaries, meaning it would take around 18 months for the council to benefit from the redundancies.

Cllr Dadd said the redundancy costs were “minuscule” in comparison.

He said: 

“That £3.8m is the first step on our journey to possibly £67m of saving. That’s come from what some would describe as fat cats, but let’s just say the higher earners in the local government family.

“We should not lose sight of the fact that we have straightaway produced £3.8m as a result of local government reorganisation.”

The new council’s management structure has significantly fewer posts than the total for the previous eight councils, 60 compared to 36, resulting in some managers moving to the unitary authority without a specified role in the new structure.

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A number of the senior staff left prior to vesting day on April 1, in the main having secured another role elsewhere, while some planned to retire just before or shortly after vesting day, while two are undertaking duties covering work for the new council which will take them up to their planned retirement.

An officer’s report to the executive states: 

“These duties make full use of their significant skills and experience to the benefit of the council and cover work areas that would otherwise require additional resource in terms of appointments, interim managers, or consultants.”

‘Parents must accept responsibility for feeding their children’, says councillor

Parents must accept some responsibility for feeding their children nutritious meals, a council’s leadership has been told, amid concerns that a lack of nutrition is linked to poor behaviour and a rise in school exclusions.

North Yorkshire County Council’s deputy leader Cllr Gareth Dadd questioned what the authority was doing to promote parent responsibility as the meeting was told the council was working on a number of fronts to teach both pupils and other residents about providing wholesome meals.

At a meeting of North Yorkshire County Council’s executive, Cllr Paul Haslam, who represents Bilton and Nidd Gorge, said:

“I am quite convinced, anecdotally, that food is critical, and often children that are disruptive in class is a result of them not having breakfast.”

In response, executive members highlighted a range of of schemes promoted by the council, including breakfast clubs, school programmes, adult education initiatives and projects run by leisure services.

Cllr Dadd said:

“I hear a lot about breakfast clubs, I hear a lot about nutrition within the state provision in schools and the like. What work are we doing as a directorate to promote parent responsibility in terms of nutrition, in terms of feeding children with a balanced and controlled diet?

“Are we putting a similar amount of effort into that, because it seems to me, if I can make a slightly controversial statement, that the focus is always on the state, the council, everybody else to fulfil that obligation, when actually it’s a two-way street, is it not?”

Director of children’s services Stuart Carlton said he was certain of links between children’s behaviour and attainment at school and their security at home, whether that be food or family stability.

He added children were taught nutritional values at schools and the council oversaw the provision of healthy school meals and provided advice about packed lunches.

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The concerns follow a group of 150 headteachers last week urging Chancellor Jeremy Hunt to increase school breakfast funding by £18m at next month’s budget, saying pupils are disrupting lessons as hunger was getting worse.

The letter warned how the national school breakfast programme would only be available to a quarter of the 10,000 schools across England that experience high levels of disadvantage.

The warning came as the Local Government Association highlighted how 215,000 eligible children were not receiving free school meals.

A meeting of NYCC’s executive had heard the county had seen almost 2,000 suspensions from schools during this academic year so far, which represented a 29% increase on the previous year.

At the same time, following a drive to promote the take-up of free school meals by the council, the number of pupils receiving food had risen, but so had the number of children who were eligible.

A Department for Education spokesman said its breakfast programme was a lifeline to families.

He added: 

“We know this supports attainment, wellbeing and readiness to learn, which is why we’re investing up to £30m in the programme, to help up to 2,500 schools in the most disadvantaged areas.”

Councillor says ‘morally wrong’ to dispute allowances recommendation

A senior county councillor has said It would be morally wrong for a council’s leadership to dispute the findings of an independent panel recommending how much elected members of a new unitary local authority should be paid.

A full meeting of North Yorkshire County Council next month will decide whether to accept setting annual allowances for the 90 elected members of the new council at £15,500.

However, the figure would be a fall for those dual councillors who currently sit on both the county council and district authorities.

The decision follows the county council’s executive supporting the findings of the five-member panel which concluded the workload of councillors would increase by about 25% in serving the unitary authority compared to the county council, which last year paid councillors a basic allowance of £10,316.

The panel, members of which have no connection to the council, said it had also taken inflation and allowances paid in comparable unitary authorities into account when making the recommendation.

The panel said it recognised the economic challenges being faced within the community and had been guided by and taken into consideration the average pay awards in the public sector of four to five per cent.

The panel’s report states: 

“Councillors volunteer for their roles. They are not remunerated at a commercial rate for their time, as if they were employees. However, the allowances should not be set at a level which acts as a disincentive to conscientious performance of duties, or which does not reflect the considerable time commitment required for the role.

“It is important that the council feels able to attract high quality candidates to stand as councillors, from a wide variety of backgrounds.

“There should also be no financial barrier to anyone who wishes to stand for election.”

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As the total cost of basic allowances paid over the last year to the county’s 319 county and district councillors is about £2m, the panel’s recommendation represents a saving of £636,000.

The issue is often among the most contentious decisions councillors are faced with and Cllr David Chance, executive member for corporate services, called for allowances to be set nationally in future.

Cllr Gareth Dadd, the authority’s deputy leader, told the meeting the panel had made its recommendation after taking evidence from elected members as well as from comparable local authorities across the country.

He said: 

“I don’t think it is morally right for us to set an independent panel up and not accept its recommendations.”

Cllr Dadd said elected members would not have to take their full allowances.

He said while people may have a view on how much of an allowance councillors should be given, in approving the panel’s recommendation for consideration by the full council, executive members had to decide whether what was being proposed was “clearly absurd”.

The Thirsk councillor added the panel’s recommendation was “within the realms of reasonableness” and that it would be a dangerous move for the executive effectively to suggest their own pay rates.

North Yorkshire Council plans council tax hike

North Yorkshire residents look set to have to find more than £100 extra from April to pay an average council tax bill, despite their newly-launched local authority embarking on a rigorous cost-cutting programme.

North Yorkshire County Council’s executive will next Tuesday consider charging average band D households £83.64 more just for services that have traditionally been provided by the district, borough and county councils.

Residents are also facing having to pay significantly higher council tax bills due to expected rises in precepts from North Yorkshire Police, North Yorkshire Fire and Rescue Service and parish councils, some of which are considering levying large-scale increases to cover their costs.

As the proposed police and fire precepts will not be announced until later this month it remains unclear what total council tax rise residents will face, but under the proposal for the unitary North Yorkshire Council element of council tax bills, band D residents would have to pay £1,759.96.

Residents of areas such as Hambleton will face yet steeper increases, paying about £45 extra on what they paid last year to bring their bills into line with those charged elsewhere in the county.

A report to the executive states even with a 4.99% increase in its charge, the new council will need to use £30m of reserves to balance its budget in 2023/24 alone alongside a cost-cutting programme to save up to £68m annually.

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Cllr Gareth Dadd, the authority’s finance executive member, said he was acutely aware of financial pressures households are facing and that those in the greatest financial need would be given up to 100 per cent reductions on council tax bills.

The authority’s leader, Cllr Carl Les, said: 

“We are facing the greatest ever financial challenges in North Yorkshire, which means we have a huge task in ensuring that services can be delivered effectively and efficiently for the public.

“However, without the opportunities presented with the launch of the new council, the situation would be a great deal worse, and it is vital that we take full advantage of these opportunities.

“We have the chance to make millions of pounds in savings by reorganising the way services are delivered, meaning that we get the most out of every pound of taxpayers’ money in North Yorkshire.”

‘Forced on local councils’

Opposition groups on the authority said although the 4.99% increase would be very difficult for many households to cover, with inflation at 11% it meant a six per cent real terms reduction to pay for council services.

Cllr Andy Brown, Green Party leader, said: 

“This is being forced on local councils by national government decisions and it leaves North Yorkshire Council massively short of what it needs to provide a reasonable level of service.”

Cllr Stuart Parsons, leader of the Independents group, said as the government had failed to carry out its promised reforms of social care charging councils were being forced to put the charge onto council tax bills.

He said:

“It shows yet again the Conservatives are a high tax party. 

“Since 2010 onwards with austerity the government has savaged local authorities and then expected them to massively increase local taxation to cover their inadequacies.”

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.”

North Yorkshire Tories call on next government to ‘get real’ over energy bills

Tory councillors on North Yorkshire County Council have told the Conservative Party leadership candidates that direct targeted help will be needed to support residents through the energy cost crisis.

Senior members of the party in the traditional Conservative stronghold of North Yorkshire say they are becoming increasingly concerned about how the most vulnerable members of the community will cope financially ahead of Ofgem confirming October’s energy price cap tomorrow.

They have pointed towards demand for North Yorkshire County Council’s Local Assistance Fund, which provides support for vulnerable people needing help with essential living costs, doubling in recent months.

Energy bills are forecast to top £5,300 annually in April next year, representing a huge increase from previous predictions.

Prime ministerial candidate frontrunner Liz Truss has promised an emergency budget if she is selected, saying she would reverse National Insurance rises and stop business tax hikes.

She has also suggested extra cash support may be available for families struggling with energy bills.

Meanwhile Rishi Sunak said he would prioritise tackling inflation and introduce more targeted support for households, pledging to reduce VAT on domestic energy bills.

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A meeting of North Yorkshire County Council’s executive this week heard its finance boss and deputy leader, Councillor Gareth Dadd, say while he remained confident the authority could rise to the challenge of tackling inflationary pressures, some residents would struggle.

Gareth Dadd

Cllr Dadd (pictured above) said:

“If I can just give one message to either one of the, well one in particular, of the prime ministerial candidates, call it hand-outs, call it what you want, there is no two ways, given the rising price cap that we are expecting in a few days’ time, direct support will be needed to those most in need.

“A pound a week saving via a tax cut will not make the cut as far as I am concerned across the most vulnerable residents in North Yorkshire.

“It’s about time we got real and recognised this and it’s direct support that’s needed as there’s an impact on our services and our costs. I think we’ve already seen evidence of that through the Local Assistance Fund.

“The plea is direct target help with those energy bills will go a long way to seeing off some of the demand rises that we’ve seen lately.”

North Yorkshire County Council finally declares climate emergency

A council which has repeatedly been challenged over the speed and scale of its carbon-cutting actions has made a U-turn to declare a climate change emergency.

North Yorkshire County Council’s executive agreed the authority would immediately adopt a climate emergency, following in the footsteps of several hundred British councils.

Senior councillors said the significant change in position by the Conservative administration had followed it listening to the requests of elected members from a number of political groups.

They added that not declaring a climate emergency could prove a distraction from its significant green efforts.

Commitments made by the council include support for the York and North Yorkshire Local Enterprise Partnership’s ambition to be the UK’s first carbon negative region – carbon neutral by 2034 and carbon negative by 2040.

These ambitions have been endorsed by the leaders of the Councils of York and North Yorkshire in the devolution deal requests submitted to government in December 2020.

An independent commission set up to examine levelling up for rural communities in the county last year found tackling climate change should be a priority, backing other ambitions for North Yorkshire to become a ‘green lung’ and to lead on employment in the green economy and a revolutionary energy transition.

In addition, the authority, which is the region’s largest employer, has sought to change staff work bases to cut commuting emissions and has made a £1m pump-priming fund available to support new carbon cutting projects, with just under half of the fund already allocated.

Harrogate acted in 2019

Nevertheless, neighbouring councils in Leeds, Darlington and York, as well as district and borough councils in North Yorkshire declared a climate emergency in 2019.

At the time North Yorkshire County Council stopped short of doing so, instead committing to producing a carbon reduction plan.

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Since then, and particularly following May’s elections, North Yorkshire council’s leadership has faced increasing numbers of requests from campaigners and councillors to formally declare a climate emergency.

A meeting of the council’s executive heard the authority’s leadership was “absolutely committed” to getting its own carbon emissions in order.

Councillor Greg White, climate change executive member, told the meeting the authority was “keen to affirm how serious we are about tackling climate change” by declaring a climate emergency and pledging to play its full part in cutting carbon emissions.

He said the authority was doing everything possible to reduce its emissions and meet a challenging net zero emissions target it had set for 2030 while protecting key services.

‘Proud that we acted’

The council’s deputy leader, Councillor Gareth Dadd, told the meeting significant carbon cutting progress had been made across the council’s many properties and workforce.

He said:

“It’s often said that actions speak louder than words. Well I think as an authority we can be very proud that we have acted in a very positive way after recognising the climate emergency two or three years ago.”

Following the meeting, Cllr White said the authority had previously been reluctant to declare a climate emergency as it could be viewed as putting words above actions.

He said the council was already undertaking most measures people associated with tackling the climate change emergency.

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.”

County council rules out ‘printing money’ to attract staff

North Yorkshire County Council leaders have pledged they will not be “printing money” to boost its workforce’s wages despite facing its highest staff turnover on record and struggling to recruit staff .

A meeting of the council, which employs some 15,000 people, heard that many staff had left for higher salaries, resulting in a turnover rate of nearly 16 per cent.

The Tory-led authority’s executive heard the county’s significantly lower unemployment level than the region was exacerbating the recruitment issue, and despite launching innovative recruitment campaigns finding staff remained “a significant challenge”.

Liberal Democrat group leader Cllr Bryn Griffiths said that because local government pay had been “significantly suppressed” over austerity and recent pay rises had been outstripped by the private sector. it was not surprising the council had an issue with filling job vacancies.

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Cllr Gareth Dadd, the authority’s finance boss, replied the council had to find a way to respond to workforce competition,

He added while the council had set aside £375,000 in bonuses to boost social care recruitment, “it’s no good just printing money”.

Gareth Dadd

Gareth Dadd

He said it was important the council highlighted the benefits of working in the public sector, adding: 

“Sooner or later local government generally has got to recognise that perhaps its policies and offer isn’t in many cases what it was 40 years ago, we are competing with the private sector.”

Condemning the RMT union’s railway strike as “absolutely disgraceful”, Cllr Dadd said the cost of living crisis was not just confined to transport workers.

He revealed a cost of living crisis action plan would be considered by the authority’s executive next month, coupled with a revised list of priorities, such as council tax reductions, benefits and revenues.

Cllr Dadd said: 

“From that I am confident we will see our priority will be helping those that are really struggling. It is only a small part, but nonetheless it flags up the commitment.”

People in crisis

The meeting heard the council’s Local Assistance Fund, designed to help people in crisis, would be used as part of the initiative, and while the fund had spent almost £200,000 more than its £675,000 budget last year, it would not be capped.

Stronger communities executive member Cllr David Chance said: 

“If there is a need we will consider it.”

He said the council was working in numerous ways to help with the crisis.

Alongside the council injecting funds into the Citizens Advice network, school holidays programmes and a domestic property improvement scheme to reduce fuel bills, and as petrol prices continue to soar trading standards officers were visiting numerous “more remote petrol stations to ensure the equipment they use it accurate”.

He said the authority’s Income Maximisation Service, which works to ensure residents receive the best benefits they can from government, has gained about £45 million in additional funds for the county’s residents.