harrogate borough council Archives - Page 155 of 159

New budget amid coronavirus costs ‘not necessary’, says council

Harrogate Borough Council bosses have said setting an emergency budget is not considered necessary at this time, despite the authority facing a £15 million shortfall due to coronavirus.

Council officials have outlined a financial recovery plan as part of the authority’s response to loss of income as a result of the pandemic.

It comes as councils across the UK are warning that some may have to issue section 114 notices – an emergency measure in dire financial circumstances – and potentially cut services to deal with the financial gaps.

Meanwhile, Leeds City Council recently warned that it faces £200 million costs amid the pandemic. Leader of the council, Judith Blake, said the authority may have to cut vital services in order to balance its books.

But, the borough council has said that any section 114 notice or mid-term budget is not necessary and it will monitor the situation.

Harrogate Borough Council’s cabinet will meet virtually again next week to discuss its financial recovery plan.

Council Virtual Meeting

In a report due before a cabinet meeting next week, Wallace Sampson, chief executive of the authority, will say that the council will review its 2020/21 budget and reserves as part of its recovery plan. It says:

“Across local government some councils are having to consider whether to produce a new mid-year budget or to issue a section 114 notice in the event that resources are unlikely to be sufficient to meet expenditure.

“However, at this time it is considered that neither of these actions are necessary, although the situation will be regularly monitored.”

The authority faces a £15 million shortfall due to loss of income on such things as leisure and car parking. A grant of £1.65 million was granted to the council by government to help with cash flow.

In an effort to tackle the deficit, senior officers at the authority have outlined a financial recovery plan which will go before senior councillors.

As part of the plan, council bosses will review the authority’s 2020/21 budget, reserves, investment plans and capital expenditure including borrowing.

Officers are expected to report more on the council’s financial position once the reviews are complete.

Meanwhile, the authority has already frozen all but essential spending and implemented a recruitment freeze on all but critical services.

It comes as both the district council and the county council face a combined deficit of around £57 million due to the pandemic.

What is a section 114 notice?

A section 114 notice means that a local council cannot set a balanced budget and new expenditure is banned.

Once a notice is served by the council’s chief finance officer, councillors and senior officials have 21 days to come up with a new budget to balance its books.

In 2018, Northamptonshire County Council was forced to serve two section 114 notices as it failed to tackle its spiralling spending which resulted in an estimated £70 million deficit. The council will now be scrapped in April 2021 and replaced with two unitary authorities.

Councillor calls for market traders to be treated fairly

A district councillor who has championed the cause of market traders is calling on Harrogate Borough Council to treat them fairly, in the wake of lockdown losses.

Independent Ripon Councillor Pauline McHardy, pictured above, with market trader Mike Finan (centre) and his son Will, told The Stray Ferret:

“For hundreds of years, the markets in Ripon and Knaresborough have made a major contribution to their local economy, by providing an important service for shoppers and bringing additional footfall that benefits other retailers, cafes, pubs and restaurants – but they appear to be undervalued by the local authority.”

The three-time Mayor of Ripon, who supported the ‘Love Your Local Market’ campaign set up in 2012 to fight for the future of markets across the UK, added:

“I have been speaking with non-food traders who have been coming here for years and they feel that, while other parts of the business community have been given proactive support from the council, in terms of advice and financial assistance, they have been left to sink or swim.”

Campaigners have called for traders at Ripon and Knaresborough markets to be given more support

HBC has given a three-month rent break to all commercial tenants in its premises, at a cost of £200,000 to the authority.

Cllr McHardy added:

“Other local authority areas in Yorkshire, including Hambleton, Craven, Leeds and Ryedale, have helped traders with either rent-free periods or reduced rents. However, following 11 weeks in which they were unable to earn any money, they found themselves having to pay full rents in Ripon and Knaresborough. It’s time for Harrogate Borough Council to start treating them fairly.”

Stallholder Mike Finan, whose family has sold women’s clothing on Ripon Market for more than 50 years, said:

“It has been really tough having weeks with no money coming in. When we returned to the markets at Thirsk and Northallerton, we were helped by the fact that rents have been reduced by 50 percent for June, but Harrogate has given us nothing.”

Steve Teggin, president of Knaresborough Chamber of Trade, said:

“The value of these traders to our communities can be seen week in, week out, as market day is a magnet that attracts much-needed business to our town centre. They deserve more help.”

Traders selling goods classed by the government as non-essential, did not have to pay rent during the weeks when they have been unable to stand, but food stall holders trading at scaled-down markets during the lockdown, were charged full rents.

Brian Murphy whose family has sold fruit and vegetables at Ripon Market for more than 100 years, said:

“At Otley, we have not been charged any rent during the coronavirus crisis and that continues, but we have had zero financial help from Harrogate.”

When approached for comment on the continuing concerns raised by stall holders, Harrogate Borough Council reiterated a previous statement in which it said:

“Where we have charged, fees have been held at last year’s rates. It’s disappointing to hear that one or two traders feel we’ve not been supportive. We’ve done all we can to ensure our markets can fully re-open safely and to enable traders to get back to business as usual.”

Harrogate parish councillor defends ‘White Lives Matter’ comments

A Harrogate district parish councillor has defended his comments online where he called for a “White Lives Matter” protest.

Cllr Ernest Butler also suggested that people moving to the UK are “taking over” on his Facebook page.

The councillor said people migrating to the country are deleting its history, telling people how to live, what jobs they take and what religions to preach.

His comments sparked much controversy with anti-racism campaigners who took them to his employers.

Harrogate Borough Council has received several complaints but said that its code of conduct does not apply when councillors use social media in a personal capacity.

But the council’s code of conduct seems to directly contradict that stance:

“When a person has been elected as a Councillor they are never a member of the general public in relation to any matter before the Council. Although this means they lose certain privileges available to the general public that is the consequence of holding public office.”

Darley Parish Council’s clerk said he had no remit to deal with complaints but added that he was aware of the comments.

When The Stray Ferret approached Cllr Ernest Butler he was not apologetic about his comments and said he had not done anything wrong.

“I am not a racist person. What I said online is true, there are just people out there that disagree with me and want to bring me down. I just stick my head above the parapet and say what other people can’t. It’s not racist to say people from European countries are taking jobs here and driving down the wages.”

He added that he has been suspended from his job at Nidd Hall and that he is now facing an employment tribunal over his comments.

Council commercial tenant’s rent free period to end

A rent free holiday for Harrogate Borough Council’s commercial tenants will not be extended beyond the end of June as the authority prepares to tackle a £15 million hole in its finances as a result of the coronavirus pandemic.

The authority gave 185 of its tenants three months rent free back in March as part of its response to the coronavirus pandemic.

While most local authorities decided to defer rents for local companies, the borough council opted to wave them completely for its tenants.

The decision, which was taken at an urgent cabinet meeting chaired by council leader, Richard Cooper, was revealed to cost taxpayers £200,000.

Some businesses received a double dose of public money with many applying for emergency government grants on top of a rent free period.

At the time of the decision, a joint statement from Cllr Cooper and chief executive Wallace Sampson said the authority wanted to encourage others to offer support.

It said: “Our commercial tenants will be offered three months’ rent free and we’ll be doing all that we can to encourage other landlords in the district to consider what support they can offer their tenants.”

Now, the council has confirmed that the period has not been extended beyond the three month period as it faces a £15 million shortfall due to the coronavirus pandemic.

In an effort to tackle the deficit, senior officers at the authority have outlined a financial recovery plan which will go before a cabinet meeting next Wednesday.

As part of the plan, council chiefs will review the authority’s 2020/21 budget, reserves, investment plans and capital expenditure including borrowing.

Officers are expected to report more on the council’s financial position once the reviews are complete.

Meanwhile, the authority has already frozen all but essential spending and implemented a recruitment freeze on all but critical services.

It comes as both the district council and the county council face a combined deficit of around £57 million due to the pandemic.

Visible return of rough sleeping in Harrogate as lockdown eases

With more tents and sleeping bags on the streets, there has been a visible return of homeless people and rough sleepers around Harrogate.

Back at the start of the lockdown, the government rolled out the ‘Everyone’s in’ scheme to put people in hostels, hotels, and B&Bs.

Harrogate Borough Council housed its homeless community in hostels in the town as well as hostels and hotels in Leeds as part of that scheme.

Both the council and the Harrogate Homeless Project (HHP) worked with them to give them medication, food, laundry facilities, showers, and around 25 mobile phones.

Neither the charity nor the local authority believes that there has been an actual rise in homeless numbers, just that some people in temporary accommodation are venturing out more.

Liz Hancock, the chief executive of HHP, told The Stray Ferret:

“We have been working hard to maintain our services during coronavirus while also keep our staff and clients safe. We do have worries about the mental health of those shielding when they are stuck inside for so long, we have distributed puzzles, books, and colouring activities to help.”

She added that she is worried about the homeless people it looks after venturing outside more and potentially bringing coronavirus back into its hostels.

But Liz Hancock also insisted that when the ‘Everyone’s in’ scheme comes to an end, homeless people will not just be turned out onto the streets. What happens next is up to the council.

What is the council’s homeless plan?

With the £3.2 billion ‘Everyone’s in’ scheme comes to an end soon, the council will work with those in temporary accommodation to find a more permanent place.

Part of the council’s plan is to get more people into Avondale Hostel, which it has just bought. It plans to renovate the building and make sure that it is only families living there.

This is the plan for the Spa Lane hostel.

Another key part is the council’s new hostel on Spa Lane. The construction works have been delayed and the expected completion date of October has been moved back to early next year.

Cllr Mike Chambers, the cabinet member for safer communities, told The Stray Ferret:

“It was a major challenge bringing in rough sleepers, we do not have that many but we do have some. We managed to make sure that all those who wanted to come inside could do. We will give everyone in temporary accommodation an opportunity to get more permanent accommodation.”

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.

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.”

Councils could pave the way for pop up beer gardens in Harrogate

Councils in the Harrogate district could soon pave the way for pop up beer gardens and outdoor cafes to help boost hospitality businesses.

There are plans to allow pubs, restaurants, and cafes with space outdoors to reopen on July 4 with special safety measures in place.

Many in Harrogate’s hospitality sector do not have those spaces and would, under the current rules, need to stay closed or continue with takeaways.

Harrogate BID has urged both local authorities to help speed up the application process for businesses to open up on pavements.

Richard Cooper, the leader of Harrogate Borough Council, said at the cabinet:

“Even if it’s at a one metre distance but, as it stands, it’s a two-metre distance it is going to be very difficult for those businesses to survive. I believe we should give businesses space where there is currently tarmac. I think that is something absolutely mission critical.”

What Mr Cooper means exactly by “space where there is currently tarmac” will be closely scrutinised – any proposal that would cut on street car parking spaces or lead to permanent changes such as pedestrianisation will be fiercely opposed by retail group Independent Harrogate.

Harrogate Borough Council is responsible for granting the premises licence and North Yorkshire County Council licenses the use of pavements, so they will need to work together.

The BID board is concerned that if the hospitality industry isn’t supported, Harrogate’s economy could be irreparably damaged.

Harrogate Borough Council is now in talks with North Yorkshire County Council.

David Bowe, Corporate Director for Business and Environmental Services, said:

“We are working with the Harrogate BID, Harrogate Borough Council and retailers at a local level to create as much space within the public highway as is practicable to support safe social distancing, café culture and safe access. It is important to understand that there are inevitably differing demands on the public highway and these have to be safely balanced.”

Robert Ogden, on behalf of Independent Harrogate, said:

“It is extremely important that Harrogate’s businesses are able to thrive in the current crisis, and Independent Harrogate supports measures that will enable smaller cafés or restaurants to open while respecting social distancing guidelines. We know the councils will do their best to balance the commercial imperative with reserving sufficient space for the public to walk on, without resorting to road closures.”

Lib Dems criticise ‘abysmal’ communication over leisure company

Harrogate Liberal Democrats have criticised an “abysmal lack of communication” from the borough council on its decision to overhaul leisure services in the district.

Councillors on the opposition group said concerns raised about the shakeup “fell on deaf ears” and added that many were left unaware of the consultation.

The criticism comes after senior councillors last night voted to set up a new company, called Brimham’s Active, to run facilities such as the Harrogate Hydro, Ripon Leisure Centre and Nidderdale Leisure Centre.

Liberal Democrat councillors have set “red lines” for the company, including transparency, affordable prices and investing profits back into leisure.

The group has also called for Starbeck Baths to be protected. Council leader, Richard Cooper, has vowed not to close the facility while he was in post.

Pat Marsh, leader of the Liberal Democrat group, said the communication from the authority gave her “no reassurance that this will be transparent and accountable”. She said:

“If this is to go ahead it must be done with very little day-to-day difference within the service.

“It must be about delivering a quality service, not a profit-hungry corporation. It must remain affordable, with prices not increasing beyond inflation. It must guarantee the protection of services, especially Starbeck Baths.

“It must be transparent and accountable, with major decisions being made by full council. Current workers must be protected and new staff must receive the same pay and conditions.”

The council said it will save around £400,000 a year on leisure and sport, which last year was estimated to have cost taxpayers £3.5 million.

Council officials will also borrow £26 million from the government’s Public Works Loans Board to fund an investment strategy into the Harrogate Hydro and a new leisure centre in Knaresborough.

The new company is expected to be operating by August 2021 and will cost the council £300,000 to set up.

Harrogate Borough Council has been approached for comment.

Councils to unveil plans to tackle coronavirus shortfalls

Council officials are expected to reveal recovery plans to tackle a £57 million shortfall facing North Yorkshire amid the coronacvirus pandemic.

Both Harrogate Borough Council and North Yorkshire County Council have been hit financially by the outbreak and racked up large deficits from tackling the virus.

The borough council faces an estimated shortfall of around £15 million due to loss of income from car parking and leisure during the lockdown.

It had initially estimated a deficit of £10 million in April, but chief executive Wallace Sampson revealed the figure had increased just two weeks later.

In a report before cabinet last night, the council said it had received £1.65 million from government to support cash flow and had already put a freeze on non-essential spending and recruitment to tackle the deficit.

A financial recovery plan will be brought before senior councillors in July, which will outline how the council will address the shortfall further.

It comes as councils across the country have warned of job losses and cuts to services which will need to be made due to the cost of the pandemic.

In neighbouring Leeds, the city council has said it may need to cut 415 jobs and introduce an emergency budget in August as it faces an overspend of £200 million.

Richard Flinton, chief executive of North Yorkshire County Council, told senior county councillors that the authority faces a £42 million deficit.

Meanwhile, North Yorkshire County Council is expected to face a deficit of £42 million by the end of the year due to fighting the outbreak.

Richard Flinton, chief executive of the county council, told senior councillors earlier this month that the authority will have to take measures to address its finances.

Mr Flinton said, while the county council had been given £26 million in government support and will recover around £7.7 million in clinical commissioning group costs, it will still have to do more to tackle the deficit. He said:

“We are hopeful that the government will recognise the need for further funding.

“We will need to take measures ourselves to protect our financial position and we are calling on the government to help on some of those future income streams, particularly around council tax.”

Carl Les, leader of North Yorkshire County Council and finance spokesperson for the County Council Network, said he had told Chancellor Rishi Sunak about the financial state of local government and called for the same support as has been given to businesses.

Harrogate Council approves leisure services overhaul

Harrogate Borough Council will set up a new company to run leisure in the district as part of a shake-up of the service and press ahead with borrowing £26 million to invest in facilities.

Senior councillors on the authority’s cabinet last night voted to create the company, called Brimham’s Active, to run services such as the Harrogate Hydro.

The authority will also look to approach the government’s Public Works Loans Board to borrow £26 million to fund two capital projects, which include a refurbishment of the Hydro and a new leisure centre in Knaresborough.

It follows a council consultation which saw nearly half of respondents disagree with the move and residents in Starbeck vowing to fight any future threat to the area’s 150-year-old baths.

Councillors said the investment strategy and the new company go “hand in hand” and will help to reduce costs on maintenances and running leisure and sport.

Stan Lumley, cabinet member for culture, tourism and sport at the authority, described the decision to set up the company as a “major decision” for the council.

He said: “It is the biggest financial decision for the council for many years and the investment strategy is crucial to enhance services.

“The company does what it says on the tin. It is not a privatised company, It is something I have been pushing for these past two years to make clear that it is administered by the council.”

Harrogate Hydro is among the facilities which will be run by the new leisure company.

Among the facilities that will be run by Brimham’s Active will be the Harrogate Hydro, Ripon Leisure Centre and Nidderdale Leisure Centre.

Leisure services in the district currently run at a loss of £3.5 million a year and some facilities have increased in cost year on year.

The council will spend £300,000 to set up the company through project start up costs and it is expected to operate from August 2021.

The decision will now go to a full council meeting to be rubber stamped.

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What is a section 114 notice?

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What is the council’s homeless plan?

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