North Yorkshire Council warns of cuts amid £30 million shortfall

The new North Yorkshire Council is set to face a £30 million shortfall in its first year, despite increased funding from government.

Michael Gove, Levelling Up Secretary, unveiled £60 billion worth of funding for councils across the UK on Monday — a 9% increase on last year.

The council is set to receive an additional £22 million from government as part of the announcement.

However, soaring inflation and the impact of the covid pandemic is still set to leave a blackhole in the authority’s finances.

A council press release said the shortfall would be met “by the one-off use of reserves as well as some savings”.

Cllr Carl Les, Conservative leader of the council, said:

“We are faced with the biggest financial pressures which I have witnessed in all of the time I have been a member of the county council since I was elected more than 20 years ago.

“While the extra funding from the government is extremely welcome, it will still not be enough to alleviate the extraordinary challenges which we do need to tackle in the coming financial year.

“The pressure on budgets will be felt across all of the directorates which provide key services for the hundreds of thousands of people who live and work in North Yorkshire.

“However, we are committed to ensuring that we can continue to provide the best possible services to the public in the face of these immense financial challenges.”

Read more:

The new council, which comes into force on April 1, is set to inherit £18 million in deficits from the seven district authorities which will be abolished, including Harrogate Borough Council.

However, increased costs from inflation and growing demand on council services such as adult social care is expected to add an additional £50 million.

Authority officials estimated that, once government funding, council tax and savings are factored in, the council will have a shortfall of around £30 million.

In order to plug that gap, it is expected that the council will have to dip into its reserves and find savings from streamlined services.

A budget for the upcoming North Yorkshire Council is expected to be set in February.

Harrogate set to get town council after 75% back the idea

A proposal to create a town council for Harrogate has received overwhelming backing from people and organisations who responded to an initial consultation.

Harrogate and Scarborough are the only parts of North Yorkshire which do not have a parish or town council.

North Yorkshire County Council said today more than two thirds of residents who responded to public consultations in the two towns were in favour to the idea of creating the new councils.

In Harrogate, 74.7 per cent were in favour of creating a parish council, with 14.5 per cent against, while in Scarborough the figures were 69.9 per cent and 18 per cent.

The recommendation for Harrogate is that a new parish be established for the currently unparished area of the town, and that the new authority be called Harrogate Town Council.

The parish would be divided into divisions, based largely on those that will apply to the new North Yorkshire Council after April 1. A total of 19 members would be elected to the town council.

The town council would be formed for administrative purposes from April 2024, and the first elections would be on May 2, 2024, when councillors would be elected for a reduced term of three years. Elections would then take place every four years from 2027.

Subject to approval by the council’s executive, there will be a further consultation on the draft recommendations between February and April to allow final recommendations to be presented to North Yorkshire Council in the summer.

Read more:

On April 1 next year, North Yorkshire County Council, Scarborough Borough Council and Harrogate Borough Council, along with the county’s five other district authorities, will be replaced by a new North Yorkshire Council that will deliver all local services.

A central pledge in the case for this change was that town and parish councils would be enabled to take on greater responsibilities if they want to and can make a successful business case.

As centres of population without parish councils, residents of unparished parts of Scarborough and Harrogate were invited in summer to give their views on whether they wanted to create a council.

North Yorkshire County Council’s executive member for corporate services, Cllr David Chance, said:

“Parish and town councils have a vital role in representing their communities. That local voice is essential in understanding the issues facing a community at a local level and the needs of the people within that community.

“Although the new North Yorkshire Council will cover a large, diverse geographical area, it aims to be the most local in the country. We have made a clear commitment to work with town and parish councils, as well as other partners, to support and empower communities to drive local action and local priorities.

“Therefore, I am pleased that such a strong majority of respondents in both the Harrogate and Scarborough areas recognise the benefits of seizing this opportunity.”

 

Harrogate district’s garden waste collection to remain county’s most expensive

The cost of garden waste collection in the Harrogate district looks set to rise to £43.50 next year.

The service currently costs £41 a year, which is £15 a year more than people in Richmondhsire pay and is also higher than charges in the other five districts. Selby’s is free.

Harrogate Borough Council, which is currently responsible for the service, will be abolished on April 1.

North Yorkshire county councillors, who will transfer to the new single unitary authority North Yorkshire Council on the same date, look set to agree a six per cent increase in the cost of the service.

It would mean Harrogate district households that choose to pay for the service will see the charge increase by £2.50. Hambleton households will pay the next highest at £40, followed by Scarborough and Ryedale at £38, Craven at £36 and Richmondshire at £25.

The service is currently free in Selby.

Read more:

Garden waste is a discretionary service, which councils are not legally required to provide.

North Yorkshire County Council’s executive member for business and economic development, Cllr Derek Bastiman, whose portfolio includes the management of waste disposal, said the service would be fairer because currently households in some districts that didn’t use the service subsidised those who did.

He said:

“This is a service people choose to opt into and it is important that we are clear on the need for it to pay for itself, alongside our commitment to continue to provide it to those residents who would like to receive it.

“There are real benefits to the service, including the environmental benefits of recycling garden waste and the convenience of not having to take your own garden waste to a recycling centre. It may well be cheaper than paying the fuel to get there, too.”

North Yorkshire County Council’s executive members will be asked to agree the new rate when members meet on January 10.

 

 

Devolution could end ‘half a century of under investment’ in Ripon

The leader of Ripon City Council has said he hopes devolution in April will end “almost half a century of under investment” in Ripon by leaders in Harrogate.

The new North Yorkshire Council unitary authority will come into effect on April 1, when Harrogate Borough Council will be abolished.

At the city council’s full meeting this month, members resolved unanimously to submit an expression of interest in taking over the running of key assets that have been under the control of Harrogate Borough Council since 1974.

The assets range from the town hall to public toilets and the list also includes Market Square (pictured below) the Wakeman’s House and Hugh Ripley Hall.

Ripon market square

Independent City Council leader Andrew Williams, who was elected to North Yorkshire County Council in May, said:

“As part of the Harrogate district we have suffered from almost half a century of under investment that has held Ripon back, but I am convinced that we can emerge from the doldrums by having greater involvement in running assets and ensuring that their potential is fully realised.”

He added:

“You only need to look at Ripon Town Hall, which has been left largely empty under Harrogate’s control, when it could have been providing valuable space for businesses and earning money for the city.

“By contrast, the city council has successfully managed Hugh Ripley Hall under a long lease from Harrogate and following our investment in upgrading the building it has become a very well used and profitable facility.”

Hugh Ripley Hall

Hugh Ripley Hall has been operating profitably under the management of Ripon City Council.

The route to greater involvement in running Ripon’s assets lies in the the double devolution proposals announced earlier this year by North Yorkshire County Council (NYCC).

NYCC has said:

“The new council will work with any town and parish council that wants to do more, for example, to deliver or commission services; providing they are able to demonstrate value for money and the ability to deliver.

“If these conditions are met then the new council will be open to funding the arrangements. The council would work with a first wave of forerunner town and parish councils to develop the concept.

“Other town and parish councils could then follow. Representatives from parish and town councils have worked with us to identify the types of service that could potentially be devolved from the new council if your local parish or town council would like to take them on.”

Ripon is aiming to be one of the forerunner councils to be selected to pilot the double devolution scheme.

Read more:

 

Calls for North Yorkshire Council to hand local areas more powers

A senior county councillor has backed giving greater powers to North Yorkshire Council area constituency committees.

Currently, county councillors in parliamentary constituency areas such as Harrogate and Knaresborough meet every two months to discuss and debate issues from education and transport to housing and the environment.

These area constituency committees can propose motions and make recommendations to the council’s executive, but in practice, the bodies have little power.

The impending abolition of the seven district councils in North Yorkshire will concentrate decision-making into the hands of the new unitary authority in Northallerton, which has led to concerns that local councillors will find it harder to influence decisions affecting their areas.

However, Conservative councillor for Mid-Craven, Simon Myers, who also has responsibility for planning on the council’s executive, said he supports area committees “taking some of the burden” off North Yorkshire Council.

He said:

“I was involved with running Craven District Council for many years and I know how many decisions we took.

“The idea that the executive can take all those decisions from Bentham to Scarborough is to me, too much work. I can see using area committees to take some of that burden as a valid thing to do.”

Read more:

At a meeting of the Skipton and Ripon’s area committee last week, Andy Brown, Green Party councillor for Aire Valley, said local government reorganisation presented an opportunity for area constituency committees to become “more than talking shops”.

Cllr Brown said:

“We have to decide whether the area committees are with people with a vision for the area and are thirsty with ideas, or do we want to lobby the MP and listen to a few reports?

“We’d like to be hearing officers on important issues like economic development, we’d like powers on things like planning. We’d like to send a message to the executive that local area committees need to be significant.”

Last week, North Yorkshire County Council announced the new authority will create six new planning committees to oversee decisions across parliamentary constituency areas to run alongside the current area committees.

Council considers North Yorkshire knowledge test for taxi drivers

Harrogate taxi drivers may be required to have knowledge of Skipton and Ryedale, under proposals being considered by county council bosses.

The local knowledge test licensed drivers must pass to carry passengers looks likely to be adapted, a meeting examining a move to create the country’s largest single taxi zone has heard.

Under proposals already put forward, the new North Yorkshire Council would create a single licensing policy for hackney carriages and private hire vehicles in the entire county.

It would mean drivers in Harrogate could operate anywhere in North Yorkshire, whereas they are currently restricted to the Harrogate district.

Councillors examining issues over harmonising taxi services heard the Department for Transport believed abolishing the seven zones would cut dead mileage for drivers and boost customer choice.

At the moment, the district and borough councils all have a knowledge test restricted to their areas, and it is unclear how much knowledge a taxi driver based in Selby would need to have of villages in the Yorkshire Dales.

Read more:

To ensure customers get good service, taxi drivers wanting to trade in Hambleton district must pick the right multiple choice answer to questions such as: 

“You are on the rank situated on Northallerton High Street when a customer asks you to take him to Darlington. Which road would you take out of Northallerton?”

Officers leading the proposals said they were examining how the knowledge test could be applied across North Yorkshire.

However, the proposals have been criticised by some local drivers.

Councillors were told taxi drivers in Harrogate in particular had formed “very vociferous” views over the proposals, which also include not setting a limit for the amount of taxis that can be licensed.

‘Straw that breaks the camel’s back’

Since North Yorkshire County Council launched a consultation over the proposed changes in October, many taxi drivers have criticised the plans, saying they could be the straw that break’s the camel’s back after suffering a loss of trade due to covid and high fuel costs.

Richard Fieldman, who has operated his cab in Ripon for 28 years, told the Stray Ferret previously that the planned changes would see drivers “swamp” areas during the busiest times of day.

Mr Fieldman said the move would see quieter areas deprived of taxis during the busier times.

He said:

“It will mean that any taxi can work in any area.

“You are going to have swamps of taxis in busy areas at busy times. That in itself brings chaos.”

A consultation into the policy changes is open until January 19, 2023. You can have your say here.

Who will make decisions on new homes in the Harrogate district in 2023?

A debate is brewing over who should decide on plans for new housing in the Harrogate district.

Currently, Harrogate Borough Council makes decisions on proposals for new homes and major developments.

But this will be taken out of the council’s hands in April 2023 when North Yorkshire Council takes over.

Some politicians argue that planning powers should be given to local areas.

But, for council bosses, it appears the matter is not so straight forward.

Local areas should make planning decisions

Ahead of the new council being formed, North Yorkshire County Council set up a working group to look at how planning matters should be decided.

The authority is set to approve measures to create its own Local Plan – but has yet to decide how planning decisions should be made.

For most councillors, they believe the area constituency committees should be in charge of such decisions affecting their own areas.

The committees are made up of county councillors from a local area, such as Harrogate and Knaresborough, and discuss matters relevant to that place.

New housing under construction at King Edwin Park in Harrogate.

New housing under construction at King Edwin Park in Harrogate.

Cllr Pat Marsh, the Liberal Democrat chair of Harrogate and Knaresborough area committee, pointed out that not handing powers to such committees would “erode accountability”.

She said:

“The devolution of decision making powers on planning is the right thing to do. How is a Councillor in Scarborough supposed to understand the impacts or issues of a particular development in Harrogate?

“In the new North Yorkshire Council structure Area Committees will be key, they should be given powers to direct local services and they should have budgets to make that happen. 

“Having one huge planning authority for the entire of North Yorkshire would be impractical, costly and would erode local accountability.”

The issue is particularly pertinent when it comes to major developments.

In Harrogate, decisions are still expected on a bottling plant at Harrogate Spring Water and a 3,000 home town between Knaresborough and Cattall called Maltkiln.

Major developments

Councillors believe that such decisions should be made at a local level.

However, in a county council report, officials suggested that a threshold should be set for applications to be made a county-wide committee.

Read more:

One of the suggestions was that decisions on applications for 500 houses or more would be taken by North Yorkshire Council.

Cllr Arnold Warneken, a Green Party county councillor who represents Ouseburn, said he had concerns over such a threshold.

He said that area committees should have input on major applications, whether they are made at a county level or not.

Cllr Warneken said:

“We got to have a situation where they [local committees] get some input.

“If they are always a consultee then they will have their say.

“I do not want to leave this down to chance, I want it written into the council’s strategy.”

‘Two models being considered’

Conservative Cllr Simon Myers,, North Yorkshire County Council’s executive member for growth and housing, said two models are being considered for planning across the county.

He said the aim for the new authority was a “co-ordinated planning policy overseen by one over-arching authority”.

He said:

“This will help attract new enterprise and also bring in much-needed new homes to address the affordable housing issues which are seen across North Yorkshire, but especially in our rural and coastal communities. 

“We envisage several committees will make key planning decisions when the new council launches from April 1 next year. 

“There are currently two models which are being considered for the new North Yorkshire Council to ensure that planning policies are co-ordinated in the best possible manner and are addressing the needs of local communities. 

“The first option would see six planning committees introduced based on constituency areas, while the other proposal would see the six committees condensed into three. Both options with see a strategic committee dealing with major planning applications as well as decisions concerning waste and minerals. 

“A great deal of work has gone into making sure that planning decisions are made effectively with the advent of the new council, and I have chaired a group of members who have been looking at the issue. I would like to put on record that I am extremely grateful for all the work that has been undertaken by both members and officers.”

The county council’s executive will consider the options and make a decision when members meet on Tuesday next week (December 13). 

That decision will then go to a full council meeting in February when it will be discussed and ratified ahead of the launch of the new council.

Councillors give backing to Harrogate council chief executive’s £101,000 redundancy pay-out

Councillors have backed a package worth £101,274 for outgoing Harrogate Borough Council chief executive Wallace Sampson.

The five councillors on the authority’s chief officer’s employment committee, which includes four Conservatives and one Liberal Democrat, met yesterday to discuss a report written by HBC’s head of legal & governance Jennifer Norton.

The report recommends Mr Sampson is paid a settlement due to the impending abolition of HBC.

HBC will cease to exist along with six other district councils and North Yorkshire County Council from April 1, 2023. A new unitary authority called North Yorkshire Council will replace them to run services across the county.

Mr Sampson’s settlement is made up of a contractual £71,633 redundancy payment and £29,641 for a 12 week notice period that he will not have to work as his job will end on March 31. 

He is paid a salary of £118,447.

After HBC is abolished, his employment would automatically transfer to North Yorkshire Council. 

However, the report says because the new council is “likely to refuse to recognise” Mr Sampson as an employee he would be “effectively stranded” and it could lead to an unfair dismissal claim.

Read more:

A redundancy package offered now would therefore reduce the “risk of the risk of costly legal proceedings that will be picked up by the public purse”.

Ms Norton summarised the report and described the settlement as a “practical and pragmatic” solution.

Conservative deputy council leader Graham Swift chaired the meeting in place of council leader Richard Cooper, who was absent.

Cllr Swift said HBC had been “disciplined” in preparing the settlement for Mr Sampson.

Hambleton District Council has faced criticism after offering a £225,000 pay-off for outgoing chief executive Justin Ives.

Cllr Swift praised Mr Sampson for his commitment to the role as staff prepare to move to the new council.

He said:

“We’re fortunate that we have a chief executive that is not just hanging around but ensuring employees are protected into the new organisation, that’s very important for staff to see leadership taking place.

“My experience is the chief executive role is one that nobody wants to do but everyone thinks they can do it better. As Wallace steps down we’re in great shape. At full council we’ll express our sincere thanks for his commitment.”

A full meeting of the council will take next Wednesday where councillors will have a final vote on Mr Sampson’s redundancy package.

Speaking ahead of the meeting, leader of the Liberal Democrats on the council, Pat Marsh, said she will be asking her colleagues to approve the package next week.

Cllr Marsh said:

“Looking at what some other district and borough councils are proposing for their chief executives, I welcome what is being recommended.

“I will be urging my group to support the package being offered to Wallace Sampson.”

Current North Yorkshire County Council chief executive Richard Flinton has already been announced as the chief executive of North Yorkshire Council.

He will earn a salary of up to £197,000 a year with responsibility for an annual budget of £1.4 billion and a workforce of 10,500 staff.

New board to review Harrogate Convention Centre operating model

A new board is to be created to assess the best way to operate Harrogate Convention Centre.

Harrogate Borough Council, which owns the facility, will be abolished in April and replaced by North Yorkshire Council. The move has raised questions over how the venue on Kings Road will be run from 2023.

In a report to be discussed by councillors next week, Paula Lorimer, director of the convention centre, said a strategic board will be set up by the new authority to oversee the planned £49 million redevelopment and assess how it should operate.

She said:

“This will bring changes for HCC including new structural reporting lines as well as to changes to governance relating to the HCC board. Some of these issues are yet to be clarified but are intended to be resolved ahead of vesting day.

“Additionally, and as mentioned earlier in this report, a new HCC strategic board is to be created by the new authority in order to oversee the redevelopment project and to assess the most appropriate operating model for the venue in the future.

“HCC staff will, however, TUPE transfer to the new authority from April 2023 as they are employees of Harrogate Borough Council.”

Read more:

Economic impact up to £31m

Ms Lorimer said the convention centre had recovered “particularly well” from covid and is forecast to reach revenues of 2019 levels next year.

According to the report, the convention centre had an economic impact on the district of £18.6 million for the covid-affected financial year 2021/2022, according to a new Visit Britain methodology.

Ms Lorimer added:

“Now the pandemic is over we are forecasting that the economic impact for 2022/23 should be close to £31 million which is excellent news.

“Our strategy is to focus on winning back larger, multi-day national and professional association conferences.

“Although the exhibitions industry has been in decline for many years, some of HCC’s events are actually growing post pandemic and Brexit. For example the Flooring Show and Nursery Fair have enjoyed a renaissance due to international supply issues caused by the pandemic and exhibitors deciding to promote in the UK.”

Paula Lorimer

Paula Lorimer

Ms Lorimer said it had been “a very positive year”, adding:

“The current order book looks strong and we expect to reach budget for the year ending to 2022/23 on lettings. More encouragingly, the order book for lettings in 2023/34 has almost been achieved over 12 months out from the year commencing.”

Ms Lorimer said an investment in cosmetic improvements, such as new carpets and drapes, “has really paid dividends and now the team await a positive decision to progress with the redevelopment so that HCC can really maximise its full potential”.

The convention centre expects to hear next month whether its £20m Levelling Up funding bid has been successful.

The report adds:

“A final decision on whether to progress the redevelopment will be made by the new authority in summer 2023.”

Union issues warning about directors’ redundancy pay at Harrogate Borough Council

Unison is to write to Harrogate Borough Council today warning them not to offer senior managers more favourable redundancy terms than other staff when it is abolished.

Seven district councils, including Harrogate, and North Yorkshire County Council will cease to exist on April 1, when they will be replaced by the new North Yorkshire Council.

All staff, except the chief executives, are due to transfer to the North Yorkshire Council under TUPE regulations.

But Hambleton District Council has agreed to pay £767,065 to four senior officers who decided they do not wish to work for the unitary North Yorkshire Council after April 1.

The payments were agreed even though the four directors had been assured they would be offered “suitable roles” at no financial loss to themselves when they transferred to North Yorkshire Council .

This has prompted trade union Unison to write to all the councils demands all staff be treated the same.

A spokesman for the North Yorkshire branch of Unison said:

“We will be writing to all the district/borough councils later today to advise them that if they are minded to follow Hambleton we will expect them to offer packages to all staff and not just those on big salaries.”

Read more:

Harrogate Borough Council’s chief officer employment committee is due to meet tonight to discuss awarding chief executive Wallace Sampson a £101,274 redundancy package.

Mr Sampson would receive a contractual redundancy payment of £71,633 plus £29,641 for a 12-week notice period he will not have to work.

Mr Sampson’s exit package is considerably less than that announced so far for other chief executives who will leave their jobs on March 31.

Selby District Council chief executive Janet Waggot is to receive a redundancy package worth £210,000 and Hambleton District Council’s chief executive, Justin Ives, is to receive a £225,000 settlement.