Balanced budget a ‘solid outcome’ as cabinet supports £5 tax increase in Harrogate
Cabinet members voted in support of increasing council tax bills by the maximum amount allowed before a local referendum is required.
Last updated 7th Jan 2021
The leader of Harrogate Borough Council has said it will be a “solid outcome” for the authority to balance its budget for the coming year as he and his cabinet colleagues signalled their support for a £5 council tax increase.
Councillor Richard Cooper was speaking at a cabinet meeting on Wednesday when members voted in support of increasing council tax bills by the maximum amount allowed before a local referendum is required.
The proposed £5 rise means the council’s proportion of bills could increase from £245.92 to £250.92 in April, but it will have to be discussed at several meetings before a final decision is made in February.
The authority has estimated that it will lose an additional £6.5m in lost income this year from Covid-hit car parking and leisure services, as well as Harrogate Convention Centre which remains on standby as an NHS Nightingale hospital.
Councillor Cooper said despite the “huge” financial impacts, the council would still be able to balance the books.
“The reason that we are able to have a balanced budget after a year of absolute turmoil and a huge financial impact on the council is because we did things like our budget transition fund,” he said.
“To coin a phrase, we mended the roof whilst the sun was shining so that we have the cash to be able to weather a financial storm like the one we have just had.
“Despite all the troubles that we have seen in the world over the past year and the turmoil in the finances of many organisations, that seems to me to be a pretty solid outcome to be able to present a balanced budget.”
On top of the £1.9m it has already received, the council is in line for an additional £2.6m of government support through coronavirus and council tax support grants.
The authority is expecting many more people facing financial hardship as a result of the pandemic will apply for help with their bills, for which it has received £232,000 from the government.
North Yorkshire County Council, police and fire services, and parish councils make up the remainder of council tax bills.
The county council – which makes up 70% of bills – is continuing to calculate whether it should raise its tax by the maximum 4.99% and a recommendation is expected to be made within three weeks.
The maximum rise could mean bills for the average Band D property increase by more than £90, but county council leader Carl Les said the authority remains mindful that many residents are struggling financially.
He said: “There is no doubt people’s incomes have been hit severely this year, but there’s also no doubt our services are absolutely vital for some people this year.
“So we have got to get that balance right between providing services and not raising too much council tax.”