Harrogate Borough Council to vote on 1.99% tax rise tomorrow as part of final budget

A planned 1.99% council tax rise is set to be decided by Harrogate Borough Council tomorrow as part of its final budget before the authority is abolished.
Harrogate Borough Council, North Yorkshire County Council, and police and fire services have all proposed tax rises this year.Harrogate Borough Council, North Yorkshire County Council, and police and fire services have all proposed tax rises this year.
Harrogate Borough Council, North Yorkshire County Council, and police and fire services have all proposed tax rises this year.

The proposed increase - which equates to an extra £5 per year for average Band D households - will go to the vote at a full council meeting.

North Yorkshire County Council and police and fire services have also proposed tax rises which if approved could see council tax bills for average households rise to a total of £2,079 from April.

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This comes at a time when families are facing a cost of living crisis with every home set for a £1,200 increase in bills this year as energy prices rise.

Conservative-run Harrogate Borough Council said its proposed tax rise is needed in order to balance the books as it continues to feel the effects of government funding cuts and "unprecedented" pandemic pressures.

Liberal Democrat councillor Chris Aldred, chair of the council's overview and scrutiny commission, gave feedback on the budget at a meeting last Wednesday when he said staffing would be a "real issue" for the authority before it is replaced with a new North Yorkshire Council in April 2023.

He also said he was disappointed with a budget consultation which just 0.06% of the Harrogate district population took part in.

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Council leader Richard Cooper said he shared these concerns before questioning councillor Aldred why he and other Liberal Democrat councillors abstained from voting on the budget earlier in the process.

Councillor Cooper said: "I'm really pleased the commission approved, but there is something that puzzles me year-on-year. Three of them abstained this year, the same three abstained last year and they also abstained probably the year before.

"No alternative budget was offered and if the commission supports this budget, on what grounds is anybody abstaining?"

Councillor Aldred responded to say the move would give the Liberal Democrats "more room for manoeuvre" at tomorrow's full council meeting.

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Under council rules, any political party, councillor or group of councillors can propose an alternative budget. The last time this was done was in 2015 when the Liberal Democrats tabled their own proposals.

If approved tomorrow, the 1.99% rise will increase Harrogate Borough Council's tax bills for the average Band D property up to £255.92.

The council makes up just under 13% of bills, while North Yorkshire County Council makes up 70% and police and fire services the remainder. Parish and town councils also charge a small levy.

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Paul Foster, head of finance at Harrogate Borough Council, said in a report that while the authority's government grant allocations had been reduced by £8.2m since 2010, it had continued to prioritise its services including bin collections and planning.

He also said the council's key income streams would not reach pre-pandemic levels for at least another year - and that this was another reason for the proposed tax increase.

Mr Foster said: "During a period of significant funding reductions, as the government continued to rein in the national deficit, and as other councils across the country faced uncertain futures, Harrogate has continued to maintain its valued frontline services.

"This is a testament to the council’s strong record of financial management before and during the age of austerity.

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"In addition to this, the council has been faced with an unprecedented financial detriment as a result of the Covid-19 pandemic.

"The resultant economic downturn continues to impact on the council’s finances, with commercial property income, planning fee income and the convention centre lettings income, now not forecast to reach pre-pandemic levels until 2023/24."

By Jacob Webster, Local Democracy Reporter