York Council set to vote on maximum council tax increase

Budget plans reflect "challenging financial outlook"

Author: Joe Gerrard, LDRS reporter and Kathy Green Published 12th Feb 2026

Proposals to hike council tax in York by the maximum permissible amount will be voted on today.

Cllr Katie Lomas, Labour’s finance spokesperson for the council, expressed the necessity of the tax increase to sustain funding for desired community services.

Conversely, Liberal Democrat opposition leader Cllr Nigel Ayre criticised potential national funding changes that could leave York losing £20 million over three years, potentially making it the country's lowest-funded authority.

Should the budget plans be approved, council tax for Band D properties will rise to £1,817.93, excluding extra charges for police, fire, mayoral and parish precepts.

Challenging financial outlook

The council is grappling with a challenging financial environment, forecasting budget gaps of £10 million for the 2027-8 and 2028-9 financial years. Additionally, the Government’s Fair Funding Review, which aims to reallocate funds to areas most in need, could result in York losing substantial funding.

Budget allocations for 2026-7 include expenditures such as £90,000 for Neighbourhood Caretakers, £2.3 million for housing repairs and modernization, £585,000 for crematorium enhancements, and £10 million for adult social care.

To counterbalance, savings of £4.3 million are proposed, stemming from leisure services reviews, securing buildings, updated lighting, and AI tools.

Concurrent discussions over £600,000 cuts to the city’s libraries and archives managed by York Explore, first sanctioned in 2024, remain ongoing.

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