North Yorkshire Council calls for "fair funding"

The leader of North Yorkshire Council has urged the Government to ensure fair levels of funding are provided to support vital services amid concerns that rural authorities could be hit particularly hard by the Chancellor’s spending plans.

Cllr Carl Les has met with the Minister responsible for local government and English devolution, Jim McMahon, to highlight his growing fears over the impact that impending funding reforms nationally will have on North Yorkshire Council’s budgets.

The review will set out the broad financial plans for how the Government intends to spend about £600 billion over the next few years, including how much funding will be allocated for councils.

Cllr Les said: “North Yorkshire is a vast rural area which presents very real challenges with the cost of delivering the services we provide to our communities.

“I am very grateful that the Minister agreed to the meeting, but I would urge the Government to ensure that there is a fair funding deal for all councils across the country.

“I stressed that while deprivation has to be tackled, this cannot be at the expense of local authorities covering large rural areas where funding pressures are especially acute due to cost of delivering services.

“The Government needs to understand that the majority of our services including social care and home to school transport are based on an assessment of eligibility. These assessments involve a range of factors which do not necessarily include deprivation as one of them.”

The council says it has already been hit by an unexpected funding shortfall of almost £22 million following increases in National Insurance employer contributions along with the Government’s decision to scrap a multi-million pound grant for local authorities covering rural areas.

It add: 'The financial pressures have been compounded by the unrelenting demand for care of older people, working age adults, and children and young people.

'Each hour of social care in North Yorkshire’s rural communities can cost £5 more than in other parts of the country because of the travel costs and the longer journey times between clients.'

'The council purchases more than two million hours of care for people in their homes each year.'

'The council also spends more than £50 million each year on home to school transport and the policy has had to be revised after costs have more than doubled since 2018/19 when it was last reviewed.'

'Once all aspects of this financial year’s local government settlement are taken into account with some funding increases in specific grants along with the rise in council tax, the council is still left with a £5 million shortfall, which is having to be covered by financial reserves.'

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