North Yorkshire Council Faces Financial Challenges Whilst Delivering Key Services

Introduction: A Council Under Pressure

North Yorkshire Council continues to serve one of England’s largest geographical areas whilst grappling with significant financial pressures. Launched in April 2023, the unitary authority has pledged to be ‘England’s most local largest council’, but recent budget decisions highlight the challenges facing local government in rural areas.

Budget Challenges and Council Tax Increases

The budget for 2025/26 was approved at a full council meeting and the rise in council tax of 4.99 per cent, including a two per cent precept for adult social care, equates to an increase of £92.18 per year for an average Band D property to a total bill of £1,939.54. The council has 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.

The leader of North Yorkshire Council has admitted that the financial plan to deliver key services over the next year has been ‘one of the toughest budgets yet’, amid calls for fairer funding for rural councils.

Service Achievements and Community Support

Despite financial constraints, the council has achieved notable successes. The Care Quality Commission gave the service a score of 81 – the highest outside of London and among the best in the country for adult social care. A total of 16 members of North Yorkshire Council have come together to help fund the printing of more Coast to Coast Walk passports – booklets that enable walkers to mark stops on the route, demonstrating how locality budgets support community initiatives.

Looking Ahead: Devolution and Future Challenges

The council is working with colleagues at the York and North Yorkshire Combined Authority, and the devolution deal allows more local decision-making and has unlocked millions of pounds of extra funding from the Government for new jobs, more affordable housing and measures to tackle climate change. However, North Yorkshire Council has written to the Government about potential judicial review over the core funding settlement, expressing concerns about funding allocation and the scrapping of the rural services delivery grant.

Conclusion: Balancing Budgets and Community Needs

North Yorkshire Council faces a delicate balancing act between maintaining essential services and managing unprecedented financial pressures. Whilst celebrating achievements in social care and community support, the authority continues to advocate for fairer funding recognition of the unique challenges facing rural local government. The coming months will prove crucial as the council navigates budget constraints whilst striving to deliver quality services across England’s largest county.