The value of Harrogate Royal Baths has fallen by £2.5m since it was acquired as a commercial investment by North Yorkshire County Council in 2018.

A council report reveals the Grade II listed building, built in the 1890s, was valued at £7m in March this year, compared with £9.5m when the local authority bought it. The council paid £9m but was prepared to pay £10m.

The report also reveals the Baths had only generated a 1.82% return on investment by September 30, which marked the end of the second quarter of the financial year.

The depreciation of the asset, along with the low rate of return on investment, has sparked fresh questions about the council’s decision to buy the Baths and its ability to manage commercial assets.

Last year Conservative county councillor Richard Musgrave said he was “absolutely speechless” to learn the council had paid £9m, adding “the performance looks very, very poor” and describing it as a “trophy investment”.

Speaking about the latest figures, Cllr Stuart Parsons, leader of the council’s Independent group, said local authorities should aim for investment returns of between five and 10 per cent and although times were hard the 1.82% figure was not acceptable. He added:

“The main problem is local authorities should not really own these properties because they don’t know what they are doing.

“I just don’t think there’s enough commercial nouse in the local authority to be running these sites.”

Figures contained on p134 of the council report.

Cllr Parsons said the new North Yorkshire Council, which comes into existence in April, should “hire proper commercial people” to run key assets like the Baths and the loss-making Harrogate Convention Centre, which he said had been “a millstone around Harrogate Borough Council‘s neck for a long time” and in danger of becoming a “white elephant”.

He added:

“This should be the last chance. Give commercial people a couple of years to turn them around and if they can’t, the council should think about disposal. There has to be a proper policy.”

‘Severely impacted by covid’

Asked about the latest figures, North Yorkshire County Council’s corporate director for strategic resources, Gary Fielding, said:

“This particular investment was an opportunity to invest not only for a direct financial return but also in our locality. To the end of the last financial year, returns have been in excess of our standard treasury investments. The issues experienced have been the result of a global pandemic and more recently other issues beyond UK borders.

“Investments are made for the longer term — balancing risks that can reasonably be foreseen and having sufficient cash flow and reserves to deal with shorter term shocks.

“As we move towards a new unitary council from April 1, 2023, we will see the freehold of Harrogate baths pass to the new council. Whilst the investment from North Yorkshire County Council will cease at this point, the ongoing relationships with tenants will continue.”

Read more:

• Harrogate’s Royal Baths: the council’s under-performing ‘trophy investment’
• Council accused of ‘trophy investment’ for £9m purchase of Harrogate’s Royal Baths

Mr Fielding indicated the council would take a tougher line on commercial tenants to maximise income.

“The hospitality sector has been severely impacted by the covid pandemic and the council has done all it reasonably can to support its tenants through these difficult times for the benefit of the local economy and taxpayers generally.

“We work with our tenants to understand their circumstances in order to maximise the income into the council. However, it is not the council’s responsibility to support tenants indefinitely, and if businesses are not sustainable then we work with tenants to bring tenancies to a close.

“We have seen improvement over the last six months which is encouraging. However, with the ongoing cost of living crisis, the hospitality sector may unfortunately experience further pressures.”

A plan by Harrogate hospital to introduce a home care service in a bid to free up bed space could “distort the market”, says a councillor.

Cllr Michael Harrison, who is cabinet member for adult care at North Yorkshire County Council, said the authority had already had to prevent one social care provider from folding this week.

It comes as officials at Harrogate and District NHS Foundation Trust revealed in September that they want to trial the service as the hospital was unable to discharge medically fit patients because of a lack of private care services.

However, Cllr Harrison told the county council’s Harrogate and Knaresborough area constituency committee last week that there was a risk the move could cause problems because the health service would be competing for staff with other providers.

Cllr Harrison said:

“I do think there is a real risk of distorting the market.

“Already this week, the county council have stepped in to prevent one domiciliary care provider from folding and I know that we are working on over 30 packages of care that have been handed back this week.

“The pressures out there are very tangible.”

Jonathan Coulter, chief executive of Harrogate and District NHS Foundation Trust, speaking at Harrogate and Knaresborough area constituency committee.

Jonathan Coulter, chief executive of the hospital trust, said it was not the intention for the hospital to take work away from private care providers.

He added that he was aware the move could look critical of the care sector, particularly because the health service has been “well funded for some years”.

He said:

“We are absolutely not trying to be critical or trying to take any work away.

“We are just trying to find a solution. We are working well with the team at the county council to work this through rather than doing anything that would upset that.

“We are really aware of the issues, but we are just trying to collectively make it better.”

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Mr Coulter added the hospital was already carrying out interviews for the service, but stressed that it would still be a pilot at this stage.

He said:

“I know there is some concern that we could distort the market because the NHS pays a bit more than other areas, that is an issue.

“But, at the moment, we have said this is a six-month pilot and we will see how it goes.”

The trust’s home care service will initially run as a six-month trial and cost around £146,000 to provide care for 36 patients.

If the trial is a success, it is estimated around 15 patients who otherwise would be stuck in hospital could be moved back into their own homes each day.

North Yorkshire County Council has been awarded £2 million to tackle bed blocking in hospitals.

The Department of Health and Social Care announced a £500 million fund to help speed up the discharge of patients across the country.

The county council, which is responsible for adult care, has been granted a total of £2,019,667 of this to increase its social care workforce and increase capacity to take on more patients from hospital.

Two months ago  Jonathan Coulter, chief executive of Harrogate and District NHS Foundation Trust, said the problem of patients staying in hospital longer than they should because of a lack of private care services was the “biggest issue” the trust faced.

The government said local authorities and health trusts will be free to spend the money on initiatives which have the “greatest impact in their area on reducing discharges into social care”.

Helen Whately, Minister of State for Care, said:

“People should be cared for in the best place for them, but discharge delays mean patients are spending too long in hospital.

“Our discharge fund will get more people cared for in the right place at the right time. We’re asking hospitals and the social care system to work together to help patients and carers too, who often take on a lot of the burden of caring when someone leaves hospital.

“The discharge fund will boost the social care workforce and in turn reduce pressures on the NHS and hospital staff, as it frees up beds and helps improve ambulance handover delays.”

Read more:

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• Hospital ‘not anticipating’ service cuts due to energy price surge
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Harrogate and District NHS Foundation Trust has already sought to introduce a home care service to free up beds.

A spokesperson for the trust said previously:

“Currently, bed occupancy at our hospitals is around 90%. Due to the increased number of planned operations that are being performed we have more patients occupying beds following their surgery.

“However, bed occupancy is also impacted by patients who no longer require hospital care, but are unable to be discharged as they do not have a suitable location where they can continue their recovery, such as a residential care home, or appropriate home care to support them in their own homes.”

North Yorkshire County Council has faced pressure from opposition councillors to reconsider how its environmental actions are managed before postponing a decision on whether fracking is appropriate in the area.

A full meeting of the authority saw a North Yorkshire Climate Coalition, which includes 18 environmental groups, calling on the authority to move “further and faster” over environmental issues, and drop party politics to introduce measures more rapidly.

The coalition pressed the council – which declared a climate emergency in the summer – to address the twin climate and ecological emergencies and to harness “huge economic opportunities” during a transition to a cleaner, greener economy.

The meeting was told that the authority’s leader, Councillor Carl Les, had this week called for people to support the Yorkshire and Humber Climate Change Commission move to declare an ecological emergency, before his Conservative group voted to stop the creation of a biodiversity crisis working group at the council.

Councillor Greg White, executive member for climate change and customer engagement, said the authority did not want to be judged on what it said, but rather its actions, and that its plan for cutting carbon was “bold”.

Coun White added while the council was working to introduce carbon-cutting measures it also needed to focus on its main purpose, which was to provide much-needed services.

A former Harrogate councillor has been awarded Honorary Alderman status for North Yorkshire after 25 years of service.

Cliff Trotter, who represented Pannal and Lower Wharfdale on North Yorkshire County Council, served on the authority from 1997 until 2022.

The Conservative councillor also served as chairman of the county council in 2012.

He was one of six councillors who received the award at a meeting on Wednesday.

Mr Trotter, who has since retired from the council on medical advice, spoke of “honour” in accepting the award, adding his “time on the council has been really enjoyable”.

He was presented with the honour by deputy chairman of the council, Cllr David Ireton.

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The position of Honorary Alderman has parity of status with a past Mayor, enabling those who receive the title to be invited to the same civic functions and events

Mr Trotter joined former councillors John Blackie, Caroline Patmore, Peter Sowray MBE, Val Arnold and Helen Swiers in receiving the honour.

Jill McMullon, partner of the late Mr Blackie, accepted the honour on his behalf.

In total, the councillors served for nearly 150 years on the county council.

Council leader, Cllr Carl Les, said: 

“With a combined service of almost 150 years, these six councillors have spent a major part of their lives working to champion their local communities and causes close to their hearts.

“John Blackie’s legacy lives on in the Upper Dales and in the minds of myself and other councillors who had the privilege of working alongside him. He worked tirelessly to ensure that local services continue to be delivered despite the pressures that rural communities face.

“It’s testament to their drive and commitment as ward councillors that the retiring members have been awarded Honorary Aldermen titles.”

There is uncertainty over the future of planned investment zones in the Harrogate district after the government announced it will “change its approach” on the policy.

Three sites were earmarked in the district for the zones, which were a key policy under former Prime Minister Liz Truss’s administration.

The sites include junction 47 of the A1 near Knaresborough, business park Potter Space Ripon at junction 50 of the A1, and Harrogate Convention Centre.

The government said previously that the zones, which would have received liberalised planning laws and tax incentives for businesses, would support economic growth.

However, Chancellor Jeremy Hunt yesterday announced in his autumn statement that the scheme would be focused towards research.

He said:

“I will also change our approach to investment zones which will now focus on leveraging our research strengths, to help build clusters for our new growth industries.

“My right honourable friend the Levelling Up Secretary will work with mayors, devolved administrations and local partners to achieve that with the first decisions announced ahead of the spring budget.”

According to Treasury documents, the government intends to “refocus the investment zones programme” and use it to “catalyse a limited number of the highest potential knowledge-intensive growth clusters”.

The document added that, as a result, the expressions of interests submitted by councils “will therefore not be taken forward”.

The news comes after Cllr Carl Les, leader of North Yorkshire County Council, admitted on Wednesday that he did not expect the zones to progress.

Read more:

• Harrogate district planning rules could be ‘radically streamlined’
• Harrogate Convention Centre ‘could lose £250 million without investment’
• Revealed: the three Harrogate district sites that could become investment zones

The county council was named as one of 38 local authorities in talks with the government over creating investment zones back in September.

The authority then earmarked 12 commercial sites as part of an expression of interest for the scheme.

However, Cllr Les told councillors at a meeting on Wednesday that he did not expect the initiative to go any further.

He said:

“I have to say I don’t think that investment zones are going to proceed.

“The Secretary of State is reviewing them and they will not go forward.”

Calls have been made for North Yorkshire to consider keeping local taxi licence zones amid a proposal to move to a single policy.

Cllr Andrew Williams, county councillor for Ripon Minster and Moorside, called for assurances that council officials would look at retaining local licensing zones after concern from cabbies.

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.

Cllr Williams told a council meeting yesterday that local drivers had raised concern that the changes would lead to taxis flocking to areas during high demand, such as a large event, leaving customers in other areas struggling to get a cab.

He said:

“I have been approached by taxi drivers who I represent who are very concerned that any form of deregulation could lead to problems in terms of actually being able to get a taxi because taxi drivers will move from rank to rank depending on when there is a busy day in a certain locality.”

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Cllr Williams added that fare rates for the entire county should be based on the highest charged otherwise drivers could lose out on income.

The council said previously that fares for hackney carriages would be reviewed at a later date.

In response, Cllr Carl Les, leader of the county council, said that all views submitted to a consultation over the changes would be considered.

He said:

“I think they are all valid points.

“Hopefully they will all come out in that consultation and then we will make the decisions when we have heard what people have actually said.”

Changes will cause “chaos”

The move to propose a single licensing policy has caused concern for cabbies in the Harrogate district.

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.

More measures are needed to help North Yorkshire County Council’s finances despite support from government on council tax, says the leader of the authority.

Cllr Carl Les said the council needed grants from central government in order to help balance its books.

His comments come as Chancellor Jeremy Hunt is expected to announce an increase in the threshold in which authorities can increase council tax by without a local referendum.

Currently, the threshold is 2.99% – but Mr Hunt is expected to hike this to 5% in today’s autumn statement.

Cllr Les told a meeting of the county council yesterday that while the measure would be welcomed, more support would be needed.

He said:

“It will give us flexibility, but I don’t think that it’s the only leaver that we need to pull.

“Government grants has got to be part of that answer as well.”

The move comes as county council leaders warned in June that the upcoming North Yorkshire Council could face a blackhole of £50 million in its finances.

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Cllr Gareth Dadd, executive member for finance at the county council, said the situation was largely due to deficits it will inherit from district councils and high inflation.

The new unitary authority will replace Harrogate Borough Council, the county council and the remaining six districts.

Although he did not estimate the total structural deficits that the seven second tier authorities, including Harrogate Borough Council, would have accumulated by the time the new council is launched in April, he said it was believed it would be “substantial”.

It has been estimated the combined ongoing deficits of the district and borough councils could be in the region of £10 million.

In addition, ahead of the recent increasing inflation rate the county authority had been prepared to cover a deficit of up to £20 million.

With inflationary pressures, which include the council’s gas and electricity bill rising by some £3m, it is believed the total deficit could nearly reach £50 million.

Cllr Dadd said at the time:

“That is a frightening figure, but nonetheless, I think we are right to raise that at this stage.”

A heated consultation event about the latest plans to encourage cycling in Harrogate highlighted the dilemma facing decision-makers.

North Yorkshire County Council held the event at Harrogate Civic Centre on Friday to hear views about the second phase of the Otley Road cycle route.

Some residents in the area made it clear they didn’t think any of the three options put forward were practical and called for the scheme to be scrapped.

They accused the council staff present of ignoring their views and claimed the consultation was a waste of time.

But some cyclists, frustrated by the length of time it is taking to implement active travel schemes that have funding in place, urged the council to get on with it. However, they have concerns about how safe some of the options are for cyclists.

Studying the designs for the various options.

A major problem for the council is the narrowness of Otley Road and nearby streets that could be affected, such as Beech Grove and Victoria Road.

It makes it difficult to introduce cycle lanes wide enough to meet current design standards without imposing traffic restrictions, such as one-way systems.

Melisa Burnham, area highways manager at the council, said the consultation had so far received more than 100 replies. She added:

“Otley Road is incredibly constrained and we are trying hard to find the right way forward.”

To take part in the consultation, which ends on November 28, click here.

The three options for Otley Road

Option 1

The first option is what was originally proposed for this second phase of the Otley Road cycle path, which runs between the junctions of Cold Bath Road and Beech Grove.

These plans include junction upgrades and shared cycle paths and footways, similar to what has already been built on Otley Road. But the county council said some sections could be too narrow, which is why it is considering re-routing.

Option 2

Under these plans the route would be diverted onto Victoria Road with a one-way traffic system and the removal of some parking spaces to allow for a 1.5 metre wide cycle path.

The one-way traffic system would run up until Lancaster Road, before connecting with Beech Grove.

Option 3

This final option would see a 3m wide shared cycle path and footway built on Queens Road before connecting with Lancaster Road and Beech Grove.

Parallel and toucan crossings are also proposed.

Tributes have been paid to Kirkby Malzeard councillor Margaret Atkinson, who has died.

Cllr Atkinson represented the Fountains and Ripley ward on Harrogate Borough Council, which she was elected to in 2018.

She was also recently re-elected to North Yorkshire County Council and was appointed chair of the authority this year.

Conservative leader of the borough council, Cllr Richard Cooper, described her as “the kind of person who lifted a room”.

He said:

“It was such a shock to learn of the sudden passing of Margaret.

“It is hard to imagine a council without her unfailing cheerfulness. She was just the kind of person who lifted a room somehow.

“I know too that she was admired and respected in the communities she represented – a real champion of the farming community.

“The thoughts of all her colleagues are with her husband Mike and their family at this time.”

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

“Margaret’s passing is such sad and tragic news, and a huge loss to not just the county council, but North Yorkshire as a whole.

“Margaret’s passion and drive for the county was second to none, and she embraced the role of the council’s chair with the verve and integrity that she became renowned for.

“She was very interested in all the people and groups she met, especially those in the rural communities we serve, as she came from those communities herself, and was a great champion of rural affairs.”

Cllr Atkinson was elected to the county council for the first time in 2013, where she represented the Masham and Fountains division.

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She retained her seat at the local elections in May this year.

The same month she was appointed as the last chair of the county council before it was due to become North Yorkshire Council.

Being appointed chair of the county council this year.

She was described by her colleagues as a “tough cookie” ahead of her appointment.

Fellow Conservative county councillor Cllr Nick Brown told the Stray Ferret she would be sorely missed.

He said:

“She was hugely respected in her area and she was a hard working and determined lady who did good things for her constituents.

“She will be badly missed.”

A life in farming 

Cllr Atkinson was a semi-retired farmer and also the secretary of the Yorkshire and North-East branch of the British Charolais Cattle Society.

She was also a member of the Yorkshire Agricultural Society and the Nidderdale Area of Outstanding Natural Beauty’s joint advisory committee.

Born into the well-known Stockil family, her grandparents had farmed at Kiplin and Brompton-on-Swale. She grew up on a farm at North Stainley, near Ripon, with three older brothers and a younger sister.

Initially working in the accounts department at ICI Harrogate, she then attended agricultural college and set up her own agricultural secretarial business, providing services to farming communities across Yorkshire.

Through her charity work, Cllr Atkinson supported cancer research, the Yorkshire Air Ambulance and a farming charity, the Addington Fund.

Cllr Atkinson, who lived in Kirkby Malzeard, near Ripon, leaves a husband, Michael, three children and five grandchildren.