Swathes of North Yorkshire residents set to pay more council tax under new plans

The new North Yorkshire Council, comes into operation next April after the dissolution of the region’s seven district councils and North Yorkshire County Council (NYCC).

And councillors have announced plans to unify rates of the tax with residents in the Hambleton district set to be most affected.

Residents in the district, who currently enjoy the lowest council tax rate in North Yorkshire, could see their bill rise by at least £89.50 on a Band D property.

But residents in Harrogate may see up to a near £50 reduction for the same band property, the plans show.

The rises and falls due to the harmonisation do not take into account the annual increase in council tax bills, which is set to be approved by county councillors in February next year.

Rates could also rise for precepts on social care, the police and fire services and parish and town councils.

NYCC;s member for finance, Coun Gareth Dadd, who is also the authority’s deputy leader, said: “The challenge to harmonise council tax bills across the county is obviously a significant one, but it is an issue we have to address before the new North Yorkshire Council is launched in April next year.

“We are acutely aware of the financial pressures which everyone is under not just in North Yorkshire, but across the whole country, as we see inflation rising and the cost of energy soar along with the price of food and drink and other essential items.

“A great deal of work has gone into the proposed scheme to harmonise council tax bills across all seven districts, and we believe that the plan that has been drawn up to introduce the changes over the two years represents the fairest way forward for everyone involved.”

Areas having council tax raised under the plans will see it increased over two years.

An average Band D property worth in Hambleton will see two increases of £44.75 annually, in Selby of £12.88, in Craven of £10.88, and of 38p in Ryedale.

By contrast, the process will see £46.94 shaved off bills in Harrogate, £35.78 in Scarborough and £16.02 in Richmondshire.

The plans to phase in the increases over two years are in direct response to the cost of living crisis, NYCC confirmed.

The council’s executive will decide on October 18 whether to go ahead with them, as well as examining proposals to cut council tax for some households on the lowest incomes.

Coun Dadd said: “We are very aware that those who are facing the biggest financial pressures are being hit the hardest by the cost of living. “The proposals for council tax reduction are aimed at benefiting those who are most in need, and ensuring that thousands of people are given the greatest amount of support possible across North Yorkshire.”

NYCC said if all the region’s council tax was brought in line with Hambleton, the authority would face a £21m spending cut.