Councillors have approved the York’s budget for this financial year including a 4.99 per cent increase in council tax.
The ruling Labour group’s budget was approved last night (Thursday) as the council says it faces a black hole in its finances of up to £10m-a-year.
Council leader Cllr Claire Douglas said the budget was ambitious but responsible and aimed to raise money through increasing income rather than through cuts.
Liberal Democrat opposition leader Cllr Nigel Ayre and Conservative leader Cllr Chris Steward both said the budget left residents facing rising costs including council tax hikes.
It includes £150,000 for new Neighbourhood Caretakers, £130,000 more in food and fuel assistance, £50,000 for free school meal trials and £20,000 to explore a Dial & Ride replacement.
There is also £50,000 more for grants to support organisations helping people with the cost of living.
The budget has set aside £8m to cover contractual cost increases and to address demographic pressures facing health and adult social care.
There is also £2.8m for rises in children’s services costs, partly covered by a £369,000 grant.
A total of £9m is pledged to meet pay, pension and contract price increases.
Charges rise
But the Budget is also set to see parking charges rise to £4.85-an-hour for the first two and by an extra ten per cent on Fridays, Saturdays and during events.
It also proposes making savings worth £1.8m through a back office transformation programme while £1.7m of cuts agreed last year will take full effect in 2025-6.
Cuts worth £600,000 to the council’s contract with York Explore to run the city’s libraries are yet to take effect after first being agreed last year.
Most council charges are set to increase by 5 per cent, with rents for council homes rising by 2.7 per cent.
The approved council tax increase is equivalent to a £96.99-a-year hike on a Band D property.
The council has set a balanced budget this year but its medium term financial forecasts have stated that it faces future funding gaps of between £6m and £10m-a-year.
Labour council leader Cllr Douglas said the administration had listened to residents in consultations in the run up to the budget meeting.
The council leader said: “We’re ambitious for York and we’re proposing no new cuts in this budget.
“Service delivery must be maintained and this requires investment to address inflationary cost pressures and meet increasing demand, we will continue to make the case for fairer Government funding for York.
“We will get on with continuing to deliver and with investing in help with the cost of living, in our parks, Neighbourhood Caretakers, adult social care and we will do it well.”
‘Frustrated and disappointed’
Liberal Democrat opposition leader Cllr Ayre said Labour’s decision to put up council tax by the maximum despite pledging to freeze it while in opposition had damaged public trust.
The opposition leader said: “People in our most-deprived communities have lost out the most, including with measures such as the green bin tax.
“Meanwhile we’re left with poorly-maintained footpaths and verges and people feel frustrated and disappointed that the national Labour Government has done nothing for York.
“We believe that we should use the council’s growing reserves for residents in the short-term as we believe we will get a fair funding deal.”
Conservative Cllr Steward said their group believed the cost of politics should be brought down rather than passing rising costs on to residents.
The Conservative group leader said: “We’ve been told that with a Labour council, two Labour MPs and a Labour Government conversations about funding would be more productive.
“But two years ago Labour said it would freeze council tax and now it’s being hiked by the maximum allowed.
“And funding for the new Haxby Station looks set to be cancelled and the Government has said it is giving money to National Railway Museum that it was going to take away, it’s a farce.”