With the publication of budget plans in North Yorkshire, the creation of the council is being credited as one reason why millions of pounds of savings can be achieved.
As is consistent across local government in the UK, financial struggles mean that North Yorkshire Council faces a £32 million shortfall in its second-year budget if savings are not made. Despite this shortfall, the majority of frontline services are due to be sheltered from cuts that other councils are making thanks to the fact that the new council was launched last year.
The launch of North Yorkshire Council came in April 2023 and saw the eight authorities that previously presided over North Yorkshire brought into one organisation. The council is now reporting that the move has resulted in approximately £40 million worth of savings, whilst other financial benefits can be achieved in the future.
Councillor Carl Les, Leader of North Yorkshire Council, said:
“We have always been aware of the benefits of bringing services under the control of one council, and a great deal of work has been undertaken to ensure that these can come to fruition.
“The council is still not a year old, but we can see just what it means to have a single authority to cover the whole of North Yorkshire.
“As a council, we know the financial pressures which taxpayers are facing, and we are committed to ensuring that every pound of residents’ and businesses’ money is used as effectively and efficiently as possible.”
Frontline services are not being impacted by the savings that reorganisation has brought about, however, the combining of services has ensured efficiencies of nearly £11.8 million have been achieved. This comes alongside savings of around £6.6 million until 2027, thanks to income that has been generated through a coordinated approach to fees and charges.
Deputy Leader of the Council, and Executive Member responsible for finance, Cllr Gareth Dadd, also commented:
“We have had to look extremely closely at the proposed budget and while we are acutely aware of the financial pressures which people are facing, we have to balance this with the fact that key services would have to be cut without a rise in council tax.
“We will continue to support those most in need in North Yorkshire, and we have managed to achieve savings that will protect the vast majority of frontline services.
“I would suggest that the proposed savings are among the least controversial of anywhere in the country, and this has been brought about thanks largely to the opportunities of local government reorganisation and also prudent management of our finances over many years.”
Despite the savings, it is important to note that local authorities are currently under extreme financial pressure, resulting in funding being drawn from all areas possible. Councils around the country are being forced to increase council tax rates, with North Yorkshire being no different. The proposed budget for 2024/25 would involve an increase of 4.99%.
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