‘Unrelenting demand’ for care puts strain on council finances

SENIOR COUNCILLORS have warned that “unrelenting demand” on key services is placing North Yorkshire County Council under intense financial pressures as taxpayers face a four per cent rise in council tax bills.

The council’s executive will next week consider a plan for the forthcoming financial year amid stark warnings that a long-term solution is needed to tackle an escalating financial crisis.

A report has outlined how the council’s financial planning is dependent on nearly £62m of temporary funding, meaning it continues to operate amid huge uncertainty.

The temporary funding comes after the council has lost about £136m in direct grants from the Government since 2011 when austerity began, although Ministers have confirmed that it will have now receive a real-term increase.

The council’s deputy leader and executive member for finance, Coun Gareth Dadd, warned services such as adult social care and special education needs are being placed under immense strain without a clear vision for future funding.

He said: “We need a sustainable solution, not sticking plasters or continuing social care precepts, which push the costs for adult social care onto local people. Given the unrelenting demand we face, we have had to utilise the precept option, but this is not something we want to rely on looking ahead.”

He added: “We need financial clarity so we are not planning in the dark.”

The council is having to identify a further £40m in savings during the next four years. The report on the proposed Budget sets out plans for £21m in cuts, but a further £19m still has to be found.

Taxpayers look set to be asked to pay four per cent more in the precept for the county council, despite it having received its first real terms increase – of 4.4 per cent – in government funding since the start of austerity.

The proposed increase in North Yorkshire, which is scheduled to be finalised at a full council meeting on February 26, would cost the average Band D household £52.31 more a year to fund the authority’s element of council tax bills.

Parish, district, fire service and police precepts are added to the county council’s levy to make the total council tax bill householders have to pay.

The county council’s leader, Coun Carl Les, said it was “with regret” that the proposed budget included a two per cent tax rise and a further two per cent more to pay for spiralling adult social care costs.

He added: “We urgently need an end to temporary funding and a more permanent solution so we can plan properly given the escalating demand for services.”

We need financial clarity so we are not planning in the dark.

Coun Gareth Dadd, deputy leader of North Yorkshire County Council.