Harrogate Borough Council has estimated its energy bills are set to cost £1.2 million above budget by the end of the financial year.

In a quarter three financial report due before councillors next week, Gillian Morland, service finance manager, said the authority has an estimated overall overspend of £1.4 million.

The overspend is largely due to soaring utility costs and a higher than expected staff pay award. It budgeted for a 2.5% pay increase but the actual increase was 6.7%.

In her quarter two update in October, Ms Morland forecast the council faced a “sizeable overspend” by the end of the financial year.

She told councillors:

“As things stand we are looking at a sizeable overspend this year.

“We are hoping overspend will come down but we do have sufficient funds to cover it.”

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But the economic situation remains difficult, mainly due to rising energy bills.

In quarter three, an overspend of £170,000 is predicted in housing and property, an increase of £121,000 from quarter two. The report explains:

“There is now a forecast overspend on homelessness of £112,000. This is primarily down to an overspend on B&B accommodation.

“There is a forecast £51,000 overspend on street lighting primarily due to energy costs and street nameplates.”

Parks and environmental services is forecasting an overspend of £739,000, largely due to temporary staff costs.

Harrogate Convention Centre is forecasting a net overspend of £264,000 — the reasons are exempt from the public and media.

But a £166,000 underspend is expected in legal and governance and underspends are also forecast in ICT and organisational development and Improvement.

Support from government

The report comes after senior county councillors warned that soaring energy costs meant local authorities needed support from government.

Cllr Simon Myers, executive councillor for growth, culture, leisure, sport and housing at North Yorkshire County Council, told a meeting in September:

“You can imagine that the extra costs in heating schools, leisure facilities and other council buildings are going to be enormous.

“And it is unlikely that there will be any ability to recoup that cost from residents. Indeed, it would be wrong to, given the economic circumstances that our residents are facing.

“We are going to need help from central government if we are not going to cut back on essential services.”

Local organisations are in unison with their reaction to the autumn statement, warning there will be a ‘tough winter’ ahead of us.

Small businesses are expected to struggle as result of this morning’s autumn statement, with consumers predicted to cut disposable spending.

Harrogate District Chamber of Commerce chief executive David Simister said the statement was “exactly as previewed”:

“Whilst it will no doubt have reassured the markets, there seems very little to support businesses when they need it most.

“The cost of running business will continue to rise and these increases will have to be passed on to the customers, who in turn are worse off with soaring inflation and eye watering energy prices…

“I’m afraid to say many businesses are looking at a very bleak future.”

David Simister

Harrogate BID chair Sara Ferguson echoed the chamber’s projection:

“There was little in today’s autumn statement to boost our high street economy… Everyone is going to have less disposal income, this will mean consumers pairing back on their spending, which will shrink the economy further.”

Mr Simister and Ms Ferguson also agreed that the £13.6 billion business rates relief package would help soften the blow of April’s expected rise.

Sara Ferguson

Read more:

• Government grants needed to help finances, says county council leader
• ‘It’s still too high’ – Harrogate residents on the government’s energy announcement

Ripon BID welcomed some elements of the statement, such as the increase to pensions and benefits in line with September’s inflation rate as well as the early news of the rising national living wage for over-23s.

In a statement, the organisation said:

“The UK falling into recession was expected and Ripon BID hopes that the chancellor’s measures to reduce inflation will be in his words ‘as short and shallow as possible’, however we would welcome any help available to businesses from the government and urge them to come up with non-inflationary measures which would aid them.

“Now more than ever it is important that we try and support our local businesses by shopping locally and giving support to our Ripon city region independents.

“Ripon BID is here to help BID businesses and would urge those businesses to get in touch with us to enable us to help promote their business and any promotions over the festive season and into the new year.”

Chancellor Jeremy Hunt delivered the autumn statement earlier today. Millions across the country will face rising taxes and Mr Hunt spending cuts have been made to “tackle the cost of living crisis and rebuild our economy”.

Conservative councillor Victoria Oldham has taken office as the final mayor of the Harrogate borough as other top roles were handed out during an official ceremony.

Cllr Oldham said it was her aim to bring “harmony and peace” during her one-year term before Harrogate Borough Council is abolished in April.

She was sworn in at the Royal Hall in Harrogate yesterday and took over from Liberal Democrat councillor Trevor Chapman, who served as mayor for the past 12 months.

Conservative councillor Robert Windass was also made deputy mayor.

Cllr Oldham, who represents the Washburn ward and works as an accountant and farmer, said:

“Throughout the year there will be a need to take stock, but more importantly it is a matter of bringing people together.

“I’d like to thank councillor Trevor Chapman for all of his hard work in the last year.

“I naturally am looking forward to continuing with this civic tradition, albeit until Harrogate Borough Council unfortunately will be no more.”

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Also at yesterday’s meeting, re-elected council leader Richard Cooper appointed councillor Sam Gibbs as cabinet member for environment, waste reduction and recycling.

Cllr Gibbs succeeds councillor Andy Paraskos who was previously a member of the seven-person cabinet.

Rebecca Burnett returns to planning

Cllr Rebecca Burnett, who previously oversaw the creation of the Harrogate district Local Plan as cabinet member for planning, was made chair of the planning committee.

She replaces councillor John Mann, who will remain a committee member.

Newly-elected mayor Cllr Oldham also passed her previous title of chair of the licensing committee to Cllr Ed Darling.

The role of the mayor is to chair full council meetings and represent the borough at ceremonies and events. They also raise money for charities and are required to put their political affiliations aside to be impartial.

Cllr Oldham has chosen Yorkshire Air Ambulance as the first of her nominated charities.

Speaking at yesterday’s meeting, Cllr Cooper said councillor Oldham will be an “outstanding mayor for all of our borough.”

He said:

“During this year she will meet hundreds of community groups, businesses and individuals. They will see in her what many of us have seen since we met her in 2017.

“She will see us out with flair, fun and dedication.”

Cllr Cooper, who will step down as the longest-serving leader of the borough council in April, also said the authority would continue pushing ahead with major projects during its final year before the new North Yorkshire Council takes over.

He said: 

“I pledge to you – on behalf of the cabinet – that this will not be a year of winding down. It will be a year of handover.

“As part of that handover, we continue to have a string of exciting initiatives and projects to take forward.

“And in the cabinet I have appointed, we have a team that can do a great job for the people of the borough.”

A Christmas express train is to operate from London to Harrogate this year to attract people to the town’s new festive market.

Tourism organisation Visit Harrogate has partnered with rail company LNER to set up the service for the new Christmas Fayre on Friday, December 10.

The first class service will depart King’s Cross at 9.33am and arrive in Harrogate just under three hours later. Tickets cost £140 and include a goodie bag of Harrogate treats. It will cost £100 from Stevenage and £80 from Grantham.

Passengers can spend one or two days in Harrogate.

A giant inflatable snow globe is being installed at King’s Cross station today and tomorrow, offering people the chance to have selfies taken inside a winter wonderland scene, while learning more about the special event.

Visit Harrogate is planning the biggest Christmas campaign in its history after covid ruined last year’s festivities.

Gemma Rio, head of destination management at Harrogate Borough Council, said:

“We are delighted to be working with LNER to bring more visitors to Harrogate for a festive break. Overnight visitors spend money in our hotels, restaurants, shops and visitors attractions – which is exactly what our local businesses need after a difficult year.

“The direct service from London is a real asset to our visitor economy, so we’re committed to working closely with LNER in the lead up to Christmas and beyond to ensure potential visitors from the south east know just how easy it is to reach us.”

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Harrogate Borough Council and Visit Harrogate are planning to work with LNER on a regular basis to attract visitors from London throughout the year.

Kate McFerran, director of communications at LNER said:

“We are excited to announce that Harrogate will be the destination for our very first Christmas market event. It’s such a stunning location for a weekend visit, offering something for all the family and it promises to be especially magical this Christmas.”

Harrogate’s Christmas offering

Harrogate Christmas Fayre, which is being jointly staged by the council and Market Place Europe, will take place on Cambridge Street, Market Place, Station Square and Cambridge Crescent from December 3 to 12.

It will be open between 10am and 7pm Monday to Wednesday, 10am and 9pm Thursday to Saturday, and 10am and 4.30pm on Sunday.

About 50 traders will take part in the fayre.

In addition, Little Bird Made is set to hold a festive artisan market in Harrogate’s Valley Gardens on Saturday 4 and Sunday 5 December, with times to be confirmed.

The artisan market will feature approximately 60 local and regional traders and producers who will sell a variety of festive arts and crafts, clothing, homeware, jewellery, as well as food and drink.