Harrogate Borough Council and North Yorkshire County Council expect the coronavirus pandemic to hit them financially with a combined £75 million budget shortfall.

The borough council has spent more than £20,000 so far and that is rising on a daily basis with a focus on supporting vulnerable residents.

That money does not include redeployment costs, with many volunteers from the culture, tourism and sports sectors now supporting the waste and recycling centres.

Leader Richard Cooper says Harrogate Borough Council was in a strong financial position before the pandemic and that it is almost impossible to estimate the effects coronavirus will have. According to the council, the vast majority of the £10 million they expect to lose out on will be lost income from leisure facilities, car parks as well as the impact on business rates and council tax income.

“Our cash flow has been hit hard and it is difficult to know the long-term impact of that. What I can say though is that we will continue to prioritise spending on front line services, on our retail centres, on community facilities, on the homeless and those at risk of homelessness and on supporting the voluntary organisations that make our area the special place it is.”

Both of the region’s councils have recently welcomed an addition £1.6 billion in Government funding to help with the escalating costs of dealing with the COVID-19 crisis.

North Yorkshire County Council believes that its finances would be £65 million worse off before any government grants.

Councillor Carl Les, North Yorkshire County Council’s leader, said:

“The whole of North Yorkshire is pulling together to meet this unprecedented challenge and we are doing everything we can to keep people well and safe and to support the NHS. But we were already operating with reduced spending power so there is no doubt that we like many other councils, will need supportive and long-term partnership with Government for the crucial role we play and to see this crisis through.”

Businesses in the Harrogate district will get a share of a new £40 million support package to help them stay afloat during the coronavirus pandemic.

Any business eligible for small business rate relief or rural relief will get a £10,000 grant while hospitality and leisure businesses with a rateable value between £15,000 and £51,000 will get a £25,000 grant.

Those hospitality and leisure businesses, regardless of rateable value, will not need to pay any business rates during the 2020/2021 financial year.

It comes as Harrogate Borough Council announces that its commercial tenants will be able to get three months rent free.

Councillor Richard Cooper, leader of Harrogate Borough Council, said: “We know businesses are struggling.

“Our business rates team are geared up to process tens of millions of pounds of government cash to support local businesses.

“As soon as it hits our bank account we will be getting it into the bank accounts of local businesses.

“We have also been lobbying government on behalf of freelancers and the self-employed who make up a significant part of our local workforce. We are expecting announcements on this over the coming days.

“But we want to go further. So we will be offering nearly all our commercial tenants three months’ rent-free.

“This includes some shops on our high streets, Harrogate Theatre and other offices and business premises around the district.”

More information on these initiatives will be available on the Harrogate Borough Council website.

Harrogate Borough Council says the £11.5m build cost of the Civic Centre is not a true picture of the cost of the project 

Reacting to a Stray Ferret exclusive on Friday, the Council argues the overall cost was lower because of money received in the sale of its other premises. 

Harrogate Borough Council argued that the £11.5m reported as the final build cost by The Stray Ferret did not reflect the overall cost of the new council offices at Knapping Mount.   

The figure of £11.5m for building the Civic Centre was obtained by a Freedom of Information request made by The Stray Ferret. The Stray Ferret asked: What was the final cost to Harrogate Borough Council of building its new Civic Centre at St Luke’s Avenue?

Its FOI response said: 

“Final account negotiations were ongoing between the Council and Harry Fairclough prior to Harry Fairclough entering into administration. The Council’s view of the gross valuation of the final account sum for the building contract is £11,516,200.” 

The council said that the figure it released as part of the FOI may change as it continues to negotiate costs with the construction firm, Harry Fairclough Ltd, which has gone into administration. 

It also said that the £11.5m figure to build its new offices did not take into account the fact that millions of pounds was generated through the sale of its other council department buildings to fund the move—these included the sale of Victoria Park House, Scottsdale House, Springfield House and Crescent Gardens. It also argued that moving staff onto one site would result in savings of £1m a year on overheads. 

The council said the £11m figure was always in the public domain. However, in a leaflet distributed by the ruling Conservative party in 2014 during a consultation about the planned build at Knapping Mount, the £8.7m was reported as a gross figure, with the sale of the offices to be deducted from this: 

Taken from a Conservative leaflet distributed to local households in 2014

The council had refused to confirm the cost in response to previous FOI requests, citing commercial sensitivity. Having now been released, the numbers are still confusing for residents of the district. 

The Stray Ferret requested the information in the FOI as part of a detailed look into the net cost of the move to Knapping Mount, the sale of its former offices and whether or not the council has met its original stated objectives for the whole project.    

A full report of our findings will be published once complete.  

Nick Brown, the Conservative councillor for Bishop Monkton and Newby, has put together a list of wide-ranging questions he wants Harrogate Borough Council to answer about its involvement in the 2019 UCI Road World Cycling Championships in Harrogate. 

The list of 12 detailed questions, seen by The Stray Ferret, shows Cllr Brown believes there are still many serious issues around the UCI which need examining- from the council’s role in bringing the nine days of racing to town, to the liability for repairs to the Stray in the wake of the event.  

Cllr Brown, who declined to comment on his list, has already presented it to members of the Overview and Scrutiny Commission, which holds the council’s executive to account. The Commission meets this Monday to establish the scope of its investigation into the preparation for, and consequences of, the cycling event.  

Some of Cllr Brown’s 12 detailed questions:

• Is there any likelihood of compensation to those organisations who lost considerable amounts of money, through no fault of themselves?  
• What insurance arrangements were in place for the event and who precisely arranged them?  
• What due diligence did HBC do on Yorkshire 2019 to ensure they had the assets and abilities to reinstate the Stray in the event it became a mud bath?

News of the investigation has been welcomed by the Stray Defence Association. Its chairman, Judy D’Arcy Thompson, said:

“An investigation would be very welcome. We have been saying that some answers are called for.  We’re sympathetic to the employees of Harrogate Borough Council who are having to pick up this awful mess. I do feel there are people who should take more responsibility.” 

The list of questions concludes with a comment from Cllr Brown: “In view of the huge sums of money involved in running events such as the UCI, at a significant potential cost to our council tax payers, we should… give priority to our, hopefully, constructive investigations but above all take more note of the needs of all our residents and businesses.” 

Harrogate Borough Council declined to comment on Cllr Brown’s list saying the Overview and Scrutiny Commission is yet to take a decision on the terms of reference for its examination of the UCI event.

UCI Image courtesy of Tony Bailey

The Stray Ferret can exclusively reveal that stallholders in Knaresborough and Ripon are launching a joint petition, as they fight for their future at the two ancient markets. 

With Harrogate Borough Council (HBC), proposing rent increases of up to 32.4 percent, both say it will lead to the loss of traders at each centre and they will be asking the public to sign a petition, calling on the council to rethink its plans.  

Steve Teggin, a member of Knaresborough Market Working Group and president of Knaresborough Chamber of Trade, says: “We are going to fight this all the way to protect our heritage asset. The town was granted its charter by Edward II in 1310 and we have the oldest continuous market in England.” 

He adds: “We have suffered enough blows with high shop vacancy rates and our market – an important footfall driver on Wednesdays and particularly Christmas – must be protected, or the town centre will find itself under water.”  

Knaresborough is anticipating the loss of up to six stallholders if the rent rise proposed by HBC goes ahead from April 1, while Brian Murphy, the stallholders’ representative for Ripon market – whose charter was granted by James I in 1604 – anticipates the loss of up to five traders from its Thursday market.   

Mr Murphy, whose family has sold fruit and vegetables at the market for more than 100 years, points out: “This is the biggest increase in rent that any of us can remember and news of it was greeted with absolute shock and dismay” 

He adds: “With some of our stallholders considering packing up because the rent rise will make them unviable, Harrogate Borough Council is about to shoot itself in both feet, because the market will be less attractive, fewer people will come into the city on Thursdays and all businesses who rely on footfall, including cafes, pubs and restaurants, will all be hit – it’s a lose-lose situation.” 

The Stray Ferret asked HBC questions, ranging from how the council justifies the increase in rent to possible effects on footfall in Knaresborough and Ripon, if some stallholders decide to withdraw from the markets. We received the following reply from an HBC spokesperson:

“The increase (£5 per week) is to cover the cost of erecting a stall on behalf of the trader (the percentage changes because the charge is lower during winter months). Currently, it costs the local taxpayer £15 each time we erect a stall on behalf of a trader. For both self-assembly and provided-stalls, our rates remains competitive with nearby markets.

“We have never distinguished between HBC-erected and self-erect stalls before but felt it would be unfair to increase the price across all traders when the cost is actually only associated with only some of them (many traders in Knaresborough and Ripon use self-assembly stalls at these other markets they sell at). As previously mentioned, the cost of putting the stalls up is heavily subsidised by the tax payer.

“It is great to hear that traders feel they are seeing more footfall through the markets in Knaresborough and Ripon. This is the reason we want to introduce more diversity and flexibility in the way the market is run and the traders we can attract. It would be a shame if some of the regular traders missed the opportunity on offer to invest in their own equipment which would actually increase their trading scope to include other towns where council erected stalls are no longer an option.

“The budget was agreed on 12 February including the fees and charges for the 2020/21 financial year. This included the incentivised offer of a £5 reduction per week for traders to switch to self-erect for 2020/21 (if signed up between April and June). We look forward to seeing how many traders choose to take this offer and help ensure our town markets continue to thrive.”