Inflation Archives - The Stray Ferret

Harrogate district garden waste fees set to increase by 7%

North Yorkshire Council looks set to increase garden waste collection charges in the Harrogate district by almost 7% next year.

A report to a meeting of the council’s environment executive members meeting on Monday proposes charging £46.50 for garden waste subscription across the county.

People in the Harrogate district paid £43.50 this year, which means they are in line for a 6.89% price hike.

Charges for the often fortnightly roadside collections of 240-litre bins had been frozen for several years for most district and borough authorities and earlier this year council officers said the average cost in Yorkshire and Humber region for garden waste was around £44.

When challenged over the charges, the authority has emphasised the collections are a non-statutory service, and that it is not considered fair “for people who do not use the service to have to subsidise it”.

The officers’ report states the total number of garden waste licences bought in 2023/24 is forecast to be 126,750, generating an annual income of £4.996m, which is £302,000 above the income forecast for the year.

The report states the extra income is due to Selby district area achieving “an impressive participation rate” of 43% since introducing charges in July with total subscriptions at 18,500, compared to the target of 6,900.

The council has previously warned of the potential to lose some subscribers as a result of its increase in charges.

Nevertheless, the report to the meeting states there has been no impact on the level of subscriptions as a result of harmonising the garden waste subscription charge in any of the former district and boroughs which already charged for the service.

The report states:

“If people choose not to subscribe to the garden waste collection service, experience from other authorities shows that residents tend to compost at home instead as there is no corresponding rise in residual waste tonnages to match the reduction in garden waste tonnages, therefore there is little impact on the environment.”

Spiralling costs force closure of award-winning Ripon cafe

The cost of living crisis, increased energy bills and spiralling inflation are forcing an award-winning Ripon cafe to close its doors in a month’s time.

Caffe Tempo, based at The Arcade since the summer of 2017, has won the Restaurant Guru Best Coffeehouse in Ripon title for six consecutive years, along with Tripadvisor awards last year and in 2020.

But it said numerous financial challenges outside of its control have made the business unviable.

Owner Tina Whincup (pictured above) told the Stray Ferret:

“Our annual turnover has grown to around £220,000, but we haven’t been able to make a profit because all of our bills have gone up.”

Office for National Statistics figures released this week showed year-on-year inflation remaining at 8.7%, but Ms Whincup said:

“The reality is that many of the raw products that we use for the items that we bake, have increased between 100% and 300%.

“To transfer this to the items that we sell makes them so expensive that they go from every day purchases made by our customers, to a once in a while treat.”

She added:

“Although we have remained busy every day, the average spend per person has reduced significantly and it is with great sadness that we are calling time on Caffe Tempo. Our last day of trading will Saturday July 22.

“This has not been an easy decision for us, but unfortunately the challenges the hospitality industry has faced and continued to face have reached the point of no return.

“Our industry has had the worst three years in modern history, with two years of on-off closures, a cost of living crisis and also a shortage of staff.

“When we add in the increase in minimum wage, energy costs at over £900 per month, which could increase to £1,800 per month, when our current contract comes to an end, we find ourselves in a situation that is no longer viable.”

Staffing shortages have seen Ms Whincup working 70 hour weeks since the years of covid closures to keep the business going, but she is now looking elsewhere for employment, along with her two members of staff, including her daughter Elise.

Harrogate council faces £1.2m overspend on energy bills

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.”

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.”

North Yorkshire Police faces £8m in inflation costs

North Yorkshire Police faces additional costs of £8 million due to inflation this year.

At a meeting of North Yorkshire’s Police Fire and Crime Panel today, the commissioner’s office outlined how the force faced pressures due to rising utility bills, salaries and rising costs of supplies.

Michael Porter, the commissioner’s finance director, warned that even the maximum permitted council tax precept increase of £15 would not be enough to cover the figure.

He said:

“All of the options in front of us at this point in time leave us with a deficit or required savings target.

“Whether or not we go for a 1.99% increase, a £10 increase or a £15 increase.”

Mr Porter told the meeting that once investment in the force’s control room and extra recruitment was factored in on top of inflation, the police faced costs of £13.6 million.

The government has given police commissioners the power to increase the force’s share of council tax by £15 before a referendum has to be held.

A £15 hike in the police precept would be the equivalent of a 5.34% increase and see the force’s share of council tax rise to £296 for a band D property.

But the commissioner’s office has estimated that the maximum precept increase would still leave around £4.7 million in savings required.

However, Mr Porter said that he was confident that the commissioner’s office had enough reserves to cover inflationary pressures next year.

He said:

“We do have an element of a reserve which is going to be specifically set aside next year for pay and inflationary pressures.

“I think it’s very important for us to have that so we don’t have to make any knee-jerk, in-year decisions and reductions.”

Conservative crime commissioner, Zoe Metcalfe, is expected to outline her budget plans for fire and police services in February.

The consultation into police and fire precepts closes on January 16, 2023. You can take part in the survey here.

Transport chief still ‘committed’ to Harrogate Station Gateway, despite inflation fears

North Yorkshire County Council remains “committed to moving forward” with Harrogate’s £10.9m Station Gateway project — with work set to begin November 2023.

It follows mounting concerns over the increased cost of building materials and how inflation will impact delivery of the long-awaited scheme.

Conservative councillor Keane Duncan, executive member for highways at the council, told the Local Democracy Reporting Service the scheme will go ahead but “elements could change” due to inflationary pressures and feedback from the latest public consultation.

Last month, Cllr Duncan sent a letter to David Simister, chief executive of Harrogate District Chamber of Commerce, that made 10 pledges to the Harrogate business community following feedback.

These included a commitment for the new council to hold a full parking review and for regular meetings to take place during construction between business owners and the building contractor Galliford Try.

Cllr Duncan added:

“I have also made clear that if we need to change elements of the scheme due to inflationary pressures, we will not compromise on quality.

“The third consultation attracted more than 5,000 individual comments. This is a significant response, and it has taken longer than expected to consider all these responses in detail. I feel it is right and proper, however, that they are given the due attention they deserve, and this process can only strengthen the final design.”

The gateway project has been in development for three years and aims to make the town centre more accessible to cyclists and pedestrians.

But measures such as reducing Station Parade to one-lane traffic and a part-pedestrianisation of James Street have proved to be unpopular with some business leaders in Harrogate.

Inflationary pressures

Since the project won government funding through its Transforming Cities Fund with an expected budget of £7.9m, inflation and the cost of building materials have led councils across the country to revaluate major building projects.

Last week, West Yorkshire Combined Authority announced that projects including the Bradford to Shipley Corridor, South East Bradford Access Road, Halifax Station Gateway, Leeds Inland Port were due to be “paused” indefinitely for financial reasons.

Mr Simister told the Local Democracy Reporting Service he was unsure if the scheme in Harrogate would be delivered.

A further obstacle was placed in front of the council this year when the property firm Hornbeam Park Developments threatened a judicial review after claiming a council-run consultation on the proposals was “unlawful” — which the council rejects.

Mr Simister said:

“We first discussed the gateway proposals in February 2020, that’s coming up to three years. It’s an awfully long time.

“With inflation rising you wonder about costs. The economy is conspiring against them and there’s also the threat of judicial review.

“I do want to see investment in Harrogate town centre but costs are going up. The council has guaranteed it will be a quality project. They are going to have to do more for less.”

“We are continuing the dialogue with Keane Duncan. I value the relationship we have with him but he does have to listen. Our door is open for him, but we’ll see what happens.”

Business Breakfast: Future of farming in spotlight at Harrogate event

Business Breakfast is sponsored by Harrogate law firm Truth Legal.

The future of the farming sector will be under the spotlight at a meeting in Harrogate next week.

Held at the Pavilions of Harrogate, the Future Farmers of Yorkshire’s autumn debate will see industry leaders discuss how the sector can cope with current levels of inflation.

Among the speakers will be Mark Berrisford-Smith, head of economics at HSBC UK’s commercial banking business.

Mr Berrisford-Smith said current inflation levels were having an impact on the agricultural sector.

He said:

“The war in Ukraine has unleashed twin inflationary shocks in the form of higher food and energy prices. For farmers in the UK, annual input price inflation is now running at 30%, while output price inflation stands at 21%.

“Although many businesses have been able to absorb higher costs thanks to better prices, this is not universally the case. Prices for some cereal products are up by more than 50% compared with a year earlier, while poultry and lamb prices have hardly increased at all.”

The meeting will also hear from Great Yorkshire Show director Charles Mills, Farmers Weekly young farmer of the year Matthew Nichols and Andrew Hardcastle, director of Hardcastle Rural Surveyors.

Future Farmers of Yorkshire management board member Isobel Eames will chair the panel.

The event will be held on Thursday, December 1. Those interested in attending can register at the Yorkshire Agricultural Society website here.

Yorkshire business urged to sign climate pledge

Business across Yorkshire are being urged to sign a pledge to tackle climate change.

Yorkshire and Humber Climate Commission, an independent body set up to support and guide the region’s organisations, launched its Climate Action Pledge this past week.

It is the first regional pledge of its kind in the UK to require businesses and organisations to make a commitment across four areas of action: becoming climate resilient; reducing carbon emissions; enhancing nature and biodiversity; and promoting a just transition.

Liz Barber, chair of Yorkshire and Humber Climate Commission, said:

“With COP27 in Egypt putting a global focus on climate action, it’s the perfect time for us to seize the initiative as a region and show how businesses and organisations can demonstrate strong leadership at all levels here in Yorkshire and Humber.

“We are launching a ‘sprint’ of climate action today, and we want to see a year of progress that puts us on the road to net zero, improves our fantastic natural assets, helps us build our resilience to climate impacts, and does this in a way that leaves no-one or nowhere behind.”

Businesses and organisations of all kinds in Yorkshire and Humber are encouraged to sign the pledge here.

Businesses across Harrogate district to face ‘tough winter’ after autumn statement

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 Fergusson of Harrogate BID, Sasso and Caffe Marconi Sara Ferguson

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”.

County council rejects Station Gateway contingency funding request

County council bosses rejected a suggestion by Harrogate Borough Council to allocate contingency funding to the town’s £11.9 million Station Gateway project.

According to a North Yorkshire County Council report, the borough council was consulted on the use of surplus money from on-street parking charges – known as civil parking enforcement.

The county council manages on-street parking across North Yorkshire and collects fines which are enforced by the districts.

The county council estimates it will allocate £3 million in funding to projects and services over the next three years and consulted the borough council on the matter.

Trevor Watson, director of economy at Harrogate Borough Council, said in a letter that part of the money could be allocated to the gateway scheme.

He said:

“With inflation rising it would be prudent to budget for additional match funding from civil parking enforcement surplus expenditure.”

Mr Watson also suggested the funding could be used to develop mitigation measures as part of the west of Harrogate infrastructure plan and as “top-up” funding for cycling schemes on Victoria Avenue and at Pannal.

However, county council bosses turned down the gateway idea and said that “it would not be possible” to match the funding.

It added it could not do so “as the surplus is fully committed for the continuation of delivering services and projects”.

The Stray Ferret asked the authority whether it had identified any other areas for contingency funding for the gateway scheme.

We had not received a response by the time of publication.

Inflation hits major projects

The move comes as the county council is facing higher costs for major projects amid rising inflation.

In August, the council’s realignment of the A59 at Kex Gill increased in cost from £61 million to £68.8 million.

The council put the increase down to rising inflation affecting construction costs.

Gary Fielding, corporate director at the county council, warned councillors that the “burden of risk” for major projects will fall on the authority amid the current economic climate.

Mr Fielding said in August that the authority continues to “monitor costs and market conditions when embarking on projects”.

Ripon MP warned councils are facing ‘enormous’ costs as inflation rises

Ripon MP Julian Smith has been warned councils are facing “enormous” costs as rising inflation stretches budgets for key services and major projects.

Mr Smith told councillors that local government reorganisation and devolution in North Yorkshire would bring “limitless opportunities” to the area.

However, he was urged to pressure Westminster to provide urgent support for local authorities as “the direction of travel is undoubtedly going to be one of austerity”.

That warning was from Cllr Simon Myers, executive member for growth, culture, leisure, sport and housing at North Yorkshire County Council, who said:

“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.”

Mr Smith responded to say the rising costs for councils, households and businesses was “increasingly concerning” and would be the “key issue” for the new Prime Minister set to be announced on Monday.

He added he was “confident” that whoever is appointed – either Liz Truss or Rishi Sunak – would announce financial support “very quickly”.

Mr Smith said:

“I can’t prejudge what is going to happen, but whatever the noise of the Tory leadership debate, there is going to be a massive government intervention.

“This in my view is at the level of, if not more financially challenging than the covid period and these interventions will have to happen right across the economy.

“Although the timing of this leadership election to the Conservative party has been far from ideal, there has been significant work in the background by current ministers and officials in Whitehall.”

Ahead of further rises in inflation and energy costs in autumn, Mr Smith said the situation facing businesses was of particular concern for the Skipton and Ripon economy which is propped up on small enterprise.

He added he had already been contacted by several firms which are “really worried” about the months ahead.

Mr Smith told today’s meeting of the Skipton and Ripon Area Constituency Committee:

“There are big concerns from small businesses across our area, particularly in manufacturing and hospitality where the current bill increases are proving very, very difficult.

“Small business has to be a key focus because there are hundreds of thousands of jobs across our area.”

County council ‘monitoring’ major projects amid soaring inflation

North Yorkshire County Council officials have said they are monitoring the cost of major projects amid soaring inflation levels.

The council was this week forced to plug a £7.2 million shortfall for its Kex Gill realignment after the overall cost of the scheme soared due to inflation.

The project is now set to cost £68.6 million – a 12% hike from its original figure.

The Stray Ferret asked the county council whether it now expected to find more funding for other projects, such as the £11.2 million Harrogate Station Gateway scheme and the second phase of the Otley Road cycle route.

Gary Fielding, director of strategic resources at the council, said:

“We can’t speculate about future inflation rates and global and national impacts on the economy, but like other organisations and businesses we continue to monitor costs and market conditions when embarking on projects.

“At present inflation is a pressure across the board and North Yorkshire County Council will continue to work to mitigate the impact it has.”

The A59 at Kex Gill, which is to be realigned after historic problems with landslips.

Mr Fielding this week warned senior councillors that the authority faced “high risks” as the cost of projects, such as Kex Gill, increased in price.

He told councillors that the “burden of risk” would fall on the council should any “unforeseen events” see additional cost for schemes.

This additional cost would come at a time when government funding is either being cut or capped.

Mr Fielding said:

“In terms of capital, you are seeing two things happening in general and I think it is right that members are aware of the risks.

“We have got allocations in government funding across the board actually reducing in quantum for the forthcoming period and in parallel with that we have got inflation rates taking off.

“So what you have actually got is a much reduced spending power going forward and a higher profile of risk based upon major schemes where the burden of risk will fall 100% with the council.”

Otley Road and Station Gateway

The comments come as the county council looks to press ahead with some of its major highways schemes.

The authority is due to procure a contractor for the second phase of the Otley Road cycle route this month.

The cost for the first phase of the scheme was £827,000.

However, soaring inflation could see the figure for the second phase be higher than anticipated.

Melissa Burnham, highway area manager at the county council, told the Stray Ferret last month:

“Final detailed designs for phase two of the Otley Road cycle route are due to be approved within the next few weeks, with the contract expected to go out to tender during August.

“It is expected the contract will be awarded to the successful provider during the autumn.”

Inflation and the cost of living crisis has also raised concern over Harrogate’s Station Gateway project.

While the county council would not be drawn on any potential increases to the cost of the scheme, officials said previously that cheaper materials could be used.

Both county council and Harrogate Borough Council officials have remained committed to the scheme and recently pledged a further £300,000 to the project.

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Support from government

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Inflationary pressures

Yorkshire business urged to sign climate pledge

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Inflation hits major projects

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Otley Road and Station Gateway

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