North Yorkshire Council is frustrated with the government’s funding cuts, leading to a £5 million budget deficit and a proposed council tax increase.
They believe the government is shifting funds away from rural areas to cities. This is making it tough for them to manage essential services. The council is looking at a 4.99% rise in council tax to help cover the gap.
The council leader, Councillor Carl Les, expressed concern. He mentioned that all councils are under financial pressure. But North Yorkshire’s situation is particularly tough. They want to avoid adding more stress to local communities already feeling the cost of living pinch.
The council is also facing rising costs in social care. With many small villages, providing services is a real challenge. They spend over £50 million a year on school transport, which has skyrocketed since 2018.
Every hour of social care in rural areas costs more due to travel. The council pays for over two million hours of care each year. With National Insurance contributions going up, they predict a £7 million shortfall, even with some government help.
Deputy leader Councillor Gareth Dadd said they’ll carefully review the budget. They want to offer the best value for residents. But tough choices are ahead. They might have to dip into financial reserves, which can’t be replaced.
The proposed budget will be discussed in February. If approved, the council tax increase will mean an extra £92.18 for the average home. The council is also planning to save £52 million, but they still expect a £34 million deficit by 2028.
The government claims they’re providing £69 billion to help councils. They say North Yorkshire will see a £23 million increase. But the council feels the funding doesn’t meet their needs. They’re hoping for a fairer deal in the future.