Residents and businesses have been urged to help to shape our financial plans and outline their priorities for a host of services amid growing concerns over the impact of the Government’s reforms on local government funding.
We are responsible for a wide range of essential services from waste collection and recycling to providing social care, education and roads maintenance.
However, we are facing intense financial pressures in a situation mirrored across the local government sector. The deeply rural parts of North Yorkshire mean that providing services to often remote communities increases costs significantly.
These financial pressures are expected to intensify when the Government announces a package of reforms later this year in the way that local government is funded.
Among the greatest pressures on our finances is the need to provide vital support for vulnerable people across the county.
Currently 50 per cent of our overall annual budget of £1.3 billion is used to fund support for vulnerable people – with the largest amount at 32 per cent going on adult social care and health.
A countywide consultation has been launched today (Monday, 10 November) to glean the public’s views and pinpoint the key priorities for the council’s budget for the next financial year and the Council Plan up until 2030.
Residents are being encouraged to take part in the Let’s Talk Money survey, which will help inform decisions on the council’s budget for the 2026/27 financial year.
Council leader, Cllr Carl Les, said: “We are lobbying the Government with support from our MPs to ensure that we get the fairest funding deal possible for North Yorkshire.
“But we are concerned that Ministers do not fully understand the financial issues of running services in such a large rural area. Unless the Government changes its approach, we are likely to be dealing with very significant reductions in the grant we receive.
“We are committed to ensuring we offer the very best value for our taxpayers, and it is vital that we are able to see exactly what people see as the main priorities.
“All councils are facing significant financial challenges, and there are unrelenting demands for services including those for children and young people with special educational needs and adult social care.
“I would urge all our residents and businesses to give their views and have a say in such an important consultation for the county.”
We were handed one of the worst funding deals nationally for the current financial year which has led to an unexpected reduction in funding of almost £22 million.
This is due to the loss of £14 million in funding after the Government scrapped the rural services delivery grant as well as an unfunded share of the costs of higher National Insurance contributions.
It is predicted that there will be a total deficit of about £34 million by the end of 2027/28 due to a series of factors including inflation and demand on services, especially adult social care and special educational needs.
The financial deficit is likely to increase due to proposed changes in the way the Government allocates funds to local councils. Although final figures are not expected to be available until next month (December), it is estimated that we are set to lose between £15 million and £20 million under the new arrangements.
Deputy leader, Cllr Gareth Dadd, whose responsibilities include finance, said: “We have always prided ourselves on the fact that our finances have been well managed, which has been so important with the challenges we are facing for our budget.
“The Let’s Talk Money survey will give the public the chance to let us know what they see as the priorities for the next financial year. We will listen and take into account all the views and comments we receive, but we cannot rule out that there will be some tough decisions going forward.”
Despite the financial challenges, a series of major projects are being introduced across North Yorkshire.
Vital upgrades to infrastructure are under way, including a project with a budget of £82.5 million to create a new stretch of the A59 at Kex Gill. There have been 15 landslips on the key route since 2000 which have caused significant disruption for the public and cost us more than £6 million to repair. The new stretch of road is due to open next year.
Plans for a major £40 million investment to promote healthy and active communities across North Yorkshire by transforming leisure and wellbeing hubs were approved by our executive on Tuesday last week (4 November).
And children and young people with special educational needs and disabilities (SEND) in North Yorkshire are being supported through a £3 million investment. We are increasing the number of specialist school places across the county through the funding.
The Let’s Talk Money survey is asking people to say how important our key priorities of affordable homes, promoting health and wellbeing, providing education and social care support, reducing the impact of climate change, supporting the local economy and transport are to them.
The public will also be asked if they are prepared to support an increase in council tax. Eight out of 10 people who responded to last year’s survey said that they would support a rise to help deliver critical services.
The results of the consultation will be included in a report on the proposed budget for the 2026/27 financial year which will be considered by our executive in January before a final decision will be made at a full council meeting on 13 February next year.
The online survey is available.
A paper copy can be collected from local libraries or our offices and returned in the envelope provided. Residents can also email LetsTalk@northyorks.gov.uk or call 0300 131 2 131 and say ‘Let’s Talk Money’ when prompted to request a survey.
Surveys are also available by post by writing to Let’s Talk, North Yorkshire Council, County Hall, Northallerton, DL7 8AD. Accessible formats of the survey are available on request. The Let’s Talk Money consultation closes at midnight on Sunday, 21 December.