Council’s budget and council tax
North Yorkshire Council is facing an increasingly challenging financial situation. Demand for our services continues to rise in many areas and the costs of providing vital care continue to soar, especially those for adults and children and young people. We await reform of how social care is delivered and funded and on the long-term approach for special education needs and disabilities. This is a situation that is replicated around the country, not just in North Yorkshire, with over 70 councils expected to request exceptional financial support from the government.
These difficult circumstances have been made worse for North Yorkshire by government changes to the way that local councils are funded. These changes, we would argue, do not properly reflect the costs of providing services in rural areas. So, despite receiving the fourth lowest funding settlement of all county; unitary; London or metropolitan councils last year, these changes will mean loss of a further £20m in core government funding.
Since the council came into existence (April 2023), it has worked up a plan to deliver almost £68 million per annum of savings that are due to local government reorganisation. This has meant that the council has been able to fund many of the increased costs so far without impacting significantly upon vital frontline services that protect some of the most vulnerable people in society. Despite these savings, when we add up the money coming in and the money we must pay out, there is a shortfall of about £17 million for next year and we anticipate this shortfall will increase to almost £25 million by the end of 2028/2029.
The budget is to be balanced in 2026/2027 financial year by using one-off reserves and that is after council tax rises by the maximum amount of 4.99 per cent (before a referendum is required). It is recognised that this will be particularly hard for some people and so the council is continuing to provide financial support to the most disadvantaged through a council tax reduction scheme and other support such as the Local Assistance Fund. Information on support available can be found at Cost of living support.
Rest assured that the council is already working hard to address the shortfalls and will be looking to do as much as it can by reducing spending, increasing income and protecting those services to the most vulnerable. The leadership of the council will also be doing all that they can to ensure that the rural and urban concerns of North Yorkshire residents, businesses and communities are heard.
If you would like any further information, then please read the following section, which includes further detail on the council’s budget and a range of frequently asked questions. If you still have issues you wish to ask about, then please contact us.
My thanks for your ongoing support.
Cllr Carl Les
Leader of the Council
Total gross expenditure for 2026 to 2027
We plan to spend £1307.1 million on providing services to residents. The total gross expenditure for 2026 to 2027 is allocated as follows:
| Directorate gross expenditure | 2026 to 2027 | Percentage of total |
|---|---|---|
| Health and adult services | £476.6 million | 36% |
| Children and young people's services | £182.1 million | 14% |
| Environment and regulatory services | £222.9 million | 17% |
| Central services | £275.2 million | 21% |
| Community development | £91.1 million | 7% |
| Corporate and other services | £59.1 million | 5% |
This is funded from a number of sources, including central government, council tax, business rates and fees and charges on services we provide.
Estimate of gross income to be received in 2026 to 2027
The table below reflects the estimate of gross income to be received in 2026 to 2027.
| Funding | 2026 to 2027 | Percentage of total |
|---|---|---|
| Fees / charges / client contributions | £304.9 million | 23% |
| Government grants - centrally held | £134.8 million | 10% |
| Government grants - service based | £82.7 million | 6% |
| Joint arrangements | £74.7 million | 6% |
| Investment / commercial and other income | £60 million | 5% |
| Use of reserves | £17 million | 1% |
| Council tax income | £524.5 million | 40% |
| Business rates | £108.5 million | 8% |
Schools are funded by a dedicated schools grant from central government and £687m has been allocated in 2026 to 2027. This amount includes both maintained schools and academies but excludes sixth form funding and pupil premium.
Capital spending in 2026 to 2027
We plan to spend £177.6m on capital projects during 2026 to 2027. Capital spending comes from a separate 'pot', which is financed from a combination of grants and contributions, borrowing, revenue budgets and capital receipts from the sales of properties.
| Capital spending by function | 2026 to 2027 |
|---|---|
| Highways and environment | £48.4 million |
| Housing | £59.3 million |
| Education | £29.5 million |
| Economic development and regeneration | £13.9 million |
| Public transport | £0 million |
| Property and fleet | £11.6 million |
| IT infrastructure | £2.2 million |
| Social care | £7.8 million |
| Culture, arts and leisure | £1.9 million |
| Other provisions | £3 million |
| Total | £177.6 million |
Council tax, precepts and what you will be charged
Council tax will be collected by North Yorkshire Council, but the money raised is spent not only by the council but by various other bodies including parish and town councils and the York and North Yorkshire Combined Authority for police and fire and rescue services.
You will usually receive your council tax bill in March of each year, if you are 18 or over, and own or rent a home.
For 2026 to 2027 the North Yorkshire Council Band D charge has been set at £2,036.32 – that is an increase of 4.99% on the charge for 2025 to 2026. Of this increase, 2.99% relates to general council tax and 2% to the adult social care precept.
Full details of this and other council tax issues, including parish precepts, are detailed in the council tax leaflet (pdf / 1 MB).
Parish precepts
View parish precepts and council tax amounts for 2026 to 2027 here.
York and North Yorkshire Combined Authority - Mayoral Precepts
In May 2024, a mayor was elected to the newly created York and North Yorkshire Combined Authority (YNYCA). The mayor and combined authority have responsibilities including the 30-year mayoral investment fund, adult education budget, community safety, improving the supply and quality of housing and improving transport. These responsibilities include Policing and Fire.
The Mayor of York and North Yorkshire is responsible for setting the Mayoral General Precept (fire) and the Mayoral Police and Crime precept. These will be shown on your bill as follows:
- Mayoral General (Fire)
- Mayoral Police and Crime
Full details of the precept charged by band is available on York and North Yorkshire Combined Authority website.
Referendum limits on increasing council tax do not apply to the mayoral general precept.
Frequently asked questions
Find out more on our Council Tax frequently asked questions page.