News Beat
City of York Council bosses considering council tax rise
Proposals have been submitted to raise council tax by 2.99 per cent in 2026/27, according to a report published ahead of budget being set on Thursday, February 12.
It comes after a 4.99 per cent increase in council tax last year, which the Labour council said was needed as it faced an up to £10 million-a-year black hole in its finances.
The report said the council is forecast to have a net overspend of £2.2 million for the year.
A council spokesperson said rising inflation, decades of underfunding, and growing demand for services have created “major financial strains for local authorities across the country” which it is not exempt from.
The council spokesperson said York’s ageing population, with increasingly complex health needs, are “increasing demand for social care” and “significant pressures on local health services are in turn pushing more pressure onto councils”.
They said the national Fair Funding Review found that York is projected to be the lowest funded unitary authority per head of population in England by the end of the three-year spending review period in 2028-29.
“Lower than average council tax rates and low levels of deprivation compared to other parts of the country mean York receives less funding, despite the real hardship experienced by some residents,” the council spokesperson said.
The council’s leader, Cllr Claire Douglas, said the budget will be “incredibly difficult” but insisted it will achieve “the right balance for our city”.
“Our budget must go beyond simply balancing the books – it must ensure the council is supporting those in most need, operating more efficiently and planning for the future needs of all our citizens and businesses,” Cllr Douglas said.
“It must also explore all opportunities to raise income, in line with what residents told us in our previous budget consultation.
“The council will continue to deliver its council plan priorities, including on housing, the economy, improving transport and tackling cost of living challenges, while ensuring we focus on important, everyday services.”
The council’s executive member for finance, Cllr Katie Lomas, said the local authority had to focus its spending on “those in most need, such as adults with care needs” due to its limited resources.
“This budget is extremely challenging, and the national funding settlement means future years will be even tougher,” Cllr Lomas said.
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The council’s proposed budget includes almost £400,000 in one-off investment items for 2026-27.
It features plans to increase the budget of the Neighbourhood Caretakers Team.
There are proposals for £50,000 to be provided to support community activities and events across York.
The plans also include more bicycle parking, with an additional 250 cycle parking “hoops” being proposed.
