Hambleton District Council, which boasts the country’s third lowest council tax demand, looks set to freeze the amount it levies from residents in recognition of the pandemic’s impact on incomes.
The authority, which has repeatedly warned its residents will face paying higher council taxes if a Government ambition to create one or more unitary authorities in North Yorkshire is realised, has proposed an average Band D property should be charged the same as 2020/21.
However, as the district council’s Band D charge of £114.48 is a fraction of the total council tax bill and as North Yorkshire County Council and North Yorkshire Police are proposing increases, tax-payers in the district are facing having to pay more than £50 extra for the year.
A report to Hambleton council’s cabinet states while funding received in the Local Government Finance Settlement would see many councils spending power increase, it “would not reverse the effects of austerity and will do very little to address local government’s funding shortfall”.
The report states the relatively low level of grant funding from Government would see Hambleton council’ spending power decrease by 2.1 per cent.
Nevertheless, Hambleton council said it was planning to avoid asking residents to pay up to 1.99 per cent more for its services.
The report adds: “Therefore, maintaining council tax at the same level as 2020/21 results in a lower core spending power than the national average 4.5 per cent increase. This impacts on the funding available to support the budget however the council’s financial position can sustain this.”
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