York Council proposes challenging budget for 2026-27 amid funding pressures
Plans aim to support key services despite financial constraints
City of York Council has outlined its budget proposals for the 2026-27 financial year in response to what it calls significant financial challenges driven by rising inflation, years of underfunding, and growing demand for services.
The council has stressed that York’s ageing population is increasing the need for social care, while pressures on local health services continue to add strain to its budget.
Following the national Fair Funding Review, York is projected to become the lowest funded unitary authority per head of population in England by the end of the three-year spending review in 2028-29.
Councillor Claire Douglas, Leader of City of York Council, commented on the council's plans:
“Our budget must go beyond simply balancing the books — it must ensure the council is supporting those in most need, operating more efficiently and planning for the future needs of all our citizens and businesses.
“It must also explore all opportunities to raise income, in line with what residents told us in our previous budget consultation.
“The council will continue to deliver its Council Plan priorities, including on housing, the economy, improving transport and tackling cost of living challenges, while ensuring we focus on important, everyday services. This budget, while incredibly difficult, achieves the right balance for our city.”
Proposed investments
The 2026-27 budget includes nearly £400k in one-off investments to directly support York’s communities.
Highlights include:
Expanding the Neighbourhood Caretakers Team to increase capacity
Bringing the city’s weed control contract in-house for improved performance
Allocating £50k to fund community activities and events
Additionally, residents who cycle will see an enhancement in local infrastructure, with plans for 250 new cycle parking hoops across York.
Focus on essential services
Councillor Katie Lomas, Executive Member for Finance, Performance, Major Projects and Equalities, highlighted the budget’s priorities:
“This budget is extremely challenging, and the national funding settlement means future years will be even tougher. With limited resources, we have focussed spend to those in most need, such as adults with care needs.
“With strong financial management and a firm control on our costs, we have the best chance of balancing the council’s budget in 2026-27, while continuing to deliver those important day to day services our residents expect and really value,” Lomas said.
The budget proposals will be discussed during the Council’s Executive meeting on 27th January, with the final vote expected at the Full Council meeting on 12th February.