Maximum council tax rise amid financial challenges

Council taxpayers in York will face a 4.99% hike in their annual bill if the Labour-run authority's budget is approved.

The city proposed rise includes a core increase of 2.99% and a further 2% for adult social care.

The council said it would mean an annual bill of £1,817.43 for a Band D property, excluding any additional charges for parish councils, the police and fire services.

A report to the authority said it faced "unprecedented financial challenges" which meant an end to some services and cuts to others as the city is due to lose £20m over three years due to national funding reforms.

The council's report on the proposals stated: "Every council service is operating in an extremely challenging environment, with no capacity to absorb additional budget cuts.

"From April 2026, the council's financial position will deteriorate further, with direct and tangible consequences for residents.

"York residents struggling to make ends meet will be left further behind in real terms, the consequences of the budget pressures are serious and far-reaching."

The report predicts a budget gap of around £10m in 2027/8 and again in 2028/9, which it estimates woud fall to about £1.9m by 2029/30.

The council's proposals for 2026/27 would result in a balanced budget, but a £2.1m overspend remains for the present financial year.

York is set to be the lowest-funded per head of any unitary authority in the country by 2028/9 with a forecast level of £923, the report adds.

It also states the government's Fair Funding Review would result in the city losing £20m over the next three years,

Ministers have said the review aimed to redirect money towards the areas most in need of government cash and fund broken public services.

York City Council's capital budget proposals for the coming financial year include crematorium improvements, fire safety improvements in council hostels and the replacement of its fleet vehicles.

Around £2.3m would be spent on repairs and modernising council houses and £37m in funding for highways is expected from the York and North Yorkshire Combined Authority.

A total of £4.3m in savings have been proposed including the removal of the council's £65,000 subsidy to the Make it York tourism body.

Cuts to spending on security at council buildings is expected to save around £200,000 in 2026/7, along with £85,000 saved by new lighting.

The plans will be considered by the council's executive on 27 January before the budget being presented to the full council in February.

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