Council leadership policy mistake costing average York resident £50 a year

The government has announced that how individual Councillors vote on crucial budget decisions – like Council Tax levels – will, in future, be published.

In York, such decisions are often the subject of a “recorded vote” anyway although it can be weeks before vigilant taxpayers can find the records in meeting minutes.

Meanwhile the government has again offered to underwrite the income required to freeze Council Tax levels. £779,000 has been offered to the City. The funding would continue in future years.

The Council has made poor decisions over the last 3 years when turning down this funding.

Council tax

The inexperienced Labour leadership – wrongly – assumed that the subsidy would be available for 1 year only. In reality the government has built the payment into the basic grant that the City receives.

This means that York Council taxpayers are – on average – now paying over £50 a year more for local services than they would have been if the Council had accepted the central government offer.

Next year a band D council taxpayer will have to find  £1,165.54 to pay for York Council services, to which will be added the costs of Fire (4% increase planned) and Police (2% increased proposed)

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The York Council is planning to give £1 million to the Leeds Council “infrastructure fund”.

In addition, around £300,000 in additional (new) Business Rates is being “pooled” with West Yorkshire Councils.

These are optional payments with no guarantee that any of the money will be invested in York.

Labour add £1 million to York’s annual debt repayment levels in just 24 months

The Council has admitted that increased borrowing means that Council taxpayers are now paying £1m a year more in debt charges than in 2011.

Kings Square work

Kings Square work

Most has been used to bolster what the Council describes as its Economic Development Fund.

£18 million has been committed to this fund already which is being used to pay for projects such as:

• Refurbishment of Kings Square

• Acquisition of an “Arts Barge”

• Tour de France start

• Newgate market refurbishment

• New City centre bus stops

Of the annual additional payments around £0.5 million goes on interest charges while £0.5 makes staged repayments of the principal.

It will take over 20 years to fully repay the borrowing

£16 million owed to York Council

The Council has published a list of the outstanding amounts owed to it in each of the last 3 years.
Uncollected debts
The size of the debt shows an upward trend which could lead to cash flow problems if not reversed.

Although many of the debts will eventually be recovered, some will not.

There have been significant increases in the amounts owed on business rates, former tenant arrears and sundry debts.

In total the amounts owed have increased from £12 million to £16 million over a 3 year period.