NYCC has faced a very challenging financial environment in the last 10 years, with significant reductions in government funding but increasing demand. As a result, spending power has reduced by more than a third over the last decade.
When austerity began in 2010, we projected a budget shortfall of £186m by the end of 2021/22. This position has continued to deteriorate, reflecting in particular the pressure on the budget for children’s and young people’s services and the impact of Covid-19. Savings of £173m have already been achieved, however, a further £103m needs to be found over the next three years.
We estimate that the pandemic will cost it an additional £82m this year from expenditure to support vulnerable residents and measures to combat Covid-19 and lost income from council tax and business rates.
To fund pandemic support and recovery as well as priority areas we are considering increasing council tax by 1.99% in 2021, equivalent to £27 a year for an average household. Each 1% rise equates to £3m. In its spending review this month, the Government said that councils could raise council tax by an additional 3% specifically for adult social care.
We are asking North Yorkshire residents to take part in our annual budget consultation to have their say on setting council tax for next year and our longer term plans and priorities.
People can take part in the consultation online at www.northyorks.gov.uk/yourservicesyoursay
The consultation will close on Monday 11 January.
Please share this email with parish council colleagues and local residents.
If you have any queries about the consultation, please email firstname.lastname@example.org