Council tax rises in Harrogate could push average bills over £2,000

The authority is facing a £59m cash shortfall over the next three years as a result of the coronavirus pandemic and bosses previously said they were facing their "toughest decision ever" over how much to demand from residents during the pandemic.

They have now confirmed proposals to raise their proportion of bills by 3.49%, including a general council tax increase of 1.99% and setting the adult social care precept at 1.5%. This equates to a £47.58 rise.

Meanwhile, finance bosses at Harrogate Borough Council have proposed that their council tax collections should be increased by the maximum £5.

North Yorkshire Police, Fire and Crime Commissioner's office is currently consulting on its tax proposals which the government has said could be increased by up to £15 for police services and £1.45 for fire.

In total, this means the average council tax bill for a Band D property in Harrogate could rise from £1,947.85 in 2020/21 to £2,016.91 in 2021/22.

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Councillor Carl Les, leader of North Yorkshire County Council, said the authority could have proposed to increase bills further with a 5% rise - the maximum allowed before a local referendum is required - but added he was aware many residents are facing financial hardship.

“We understand that residents are facing many difficulties in the light of Covid," he said. "We also understand just how vital some of the council’s services are to the most vulnerable in society.”

The county council's budget for 2021/22 is to be considered by executive members next week and includes use of one-off emergency government funding and just over £8m of reserves.

This comes on the back of an extra £82m of spending in response to Covid in the last year alone.

Councillor Les said use of the authority's reserves was a necessity to balance the books and that its financial future remained a major uncertainty amid talks of local government reorganisation in North Yorkshire

He said: "We think it is right that we use reserves at this point so we can avoid rushing into savings that may be at the expense of services to some of our most vulnerable residents.

“We hope to be clearer later in the year about the legacy of Covid, the government’s decision on local government reorganisation in North Yorkshire and the future of council funding beyond 2022.

“The times have never been so uncertain, and given these uncertainties it is critical that the council maintains as much flexibility as possible in order to protect vital services whilst being able to respond to further potential shocks."

By Jacob Webster, Local Democracy Reporter