Council tax set to rise by almost 5 per cent in Harrogate this year
The county council is facing a £75m shortfall due to the pandemic.
Council tax in Harrogate could rise by almost 5 per cent - as North Yorkshire County Council faces a £75million shortfall due to the pandemic.
It means council tax bills will increase by the maximum amount possible before a local referendum is required.
County leaders are warning they are facing their “toughest decision ever” over how much to demand from residents during the pandemic.
North Yorkshire County Council is facing a £75m shortfall of funding over the next three years and its leaders said while the authority could increase bills by up to 4.99 per cent – a rise of more than £90 for the average household – they are mindful that many residents are facing financial hardship.
Meanwhile, finance bosses at Harrogate Borough Council have proposed their council tax collections – which make up just under 13% of bills – should be increased by the maximum £5 as they said the authority has also not been immune to the impact of the pandemic and government funding cuts.
Senior councillors will meet tonight to discuss the proposals, while North Yorkshire County Council – which makes up 70% of bills – is continuing to calculate whether it should raise general council tax by up to 1.99 per cent and if it should make an additional three per cent charge for its under-funded social care service.
The recommendation, expected to be made within three weeks, will be presented to the county council’s elected members for a decision in February when Harrogate councillors will also meet to vote on their proposals.
North Yorkshire County Council’s executive member for finance, councillor Gareth Dadd, said: “It’s a very difficult balance, because whilst we know the county council needs that funding to run critical services for vulnerable people, we know that to take money out of the North Yorkshire economy at this critical time is not the best situation to be in.
“Never has that dilemma between funding critical services and raiding the coffers of the economy of North Yorkshire been more acute.”
The authority’s leader, councillor Carl Les, added: “There’s 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.”
For average band D properties last year, the county council levied £1,244 of basic council tax, as well as a social care charge of £120, while Harrogate council asked for just under £246 and police and fire services £388.
Paul Foster, head of finance at Harrogate Borough Council, said in a report the authority faced an “unprecedented financial detriment” as a result of the pandemic and that income from lockdown-hit services including leisure centres and car parks would remain an uncertainty over the coming months.
He said: “The financial implications are challenging to estimate with certainty as there continue to be a number of unknowns, from how long, and to what extent, national and local restrictions will continue.”
Over the last five years, councils have seen government funding cut by around 50%, with Harrogate’s general grant allocation has reduced by £8.2m.
Despite this, Mr Foster said the council remained in a strong financial position when compared to other harder-hit authorities.