Why are we seeing council tax increases when I thought local government reorganisation was supposed to save money?
Reorganisation has provided lots of opportunities for efficiencies and the savings plans since the first day of the new council add up to a total of £68m per year. That is at the top end of the estimates that were made at the start of re-organisation, so we are well on track after less than three years.
However, the changes in funding of councils have seen us lose £34m in grants and pick up extra costs of £8.6m with the changes to employer's national insurance. Add on to that the increasing costs of providing services and the demand, particularly in areas like:child placements; adult social care; home to school transport and special educational needs and disability (SEND), which together have added an extra £62m to next year's budget and you can see that the reorganisation savings are insufficient to offset all of those pressures.
We therefore estimate that it will have a shortfall of about £17m per annum despite a council tax increase of 4.99% and the reorganisation savings. Without those savings the deficit would have been £85m per year.
Why is the council tax going up by more than inflation?
Councils are legally required to set a balanced budget. As outlined above the rapidly rising costs and demand for services together with reductions in government funding means that even after making substantial savings and using one-off contributions from reserves, we have little choice other than to increase Council Tax to the maximum set by the government (before requiring a referendum) to enable a balanced budget.
What does the council spend on equality and diversity officers?
We do not employ any equality and diversity officers. The Equalities Act requires us to ensure that it considers the impacts of decisions on people with protected characteristics, and all staff therefore need to be aware of the duty.
What does the council spend on net zero officers?
The cost of officers engaged in net zero projects are entirely met by external funding. We have an aspiration to be net zero by 2030 and the reduction in carbon can also see us save money on energy and travel costs. We will therefore continue to try and win further funding so that it can save both carbon and costs.
Is Council Tax increasing to pay for staff pensions?
Local government pensions for most retired North Yorkshire Council staff are not paid directly from council funds but through the North Yorkshire Pension Fund. This is a fully funded scheme financed through investment income and contributions from both employers and employees through their working life.
The budget for the employer pension contribution is £46 million which represents just over 3% of the total spend of the council. Due to the strong performance of the local pension fund, it has been possible to reduce the cost of the employer’s contributions going forward which will save more than £8 million per year.
What support does the council provide to those who are most badly affected by the cost of living?
We offer a range of assistance including direct emergency funding, Council Tax discount schemes and a range of support and advice.
Find out about cost of living support.