A government review of local authority funding could be disastrous for North Yorkshire Council’s future spending plans, a senior councillor has warned.
Council chiefs are worried a proposed spending review will deliver further financial pain following the loss of £14.3m from the cancelled rural services delivery grant.
Deputy Prime Minister Angela Rayner has announced a review to overhaul the funding system for local government and address “creaking public services”.
But Councillor Gareth Dadd, deputy leader and executive member for finance and resources, told members at a full council meeting on Friday that the review could have dire consequences for the authority.
The meeting was held to set the 2025/26 budget and agree the council plan, which sets out the council’s objectives for the next four years.
Included in the plan are schemes such as the Scarborough Harbour West Pier Regeneration as well as Harrogate, Skipton and Selby Gateway projects, the Catterick Garrison Town Centre scheme, as well as targets on new affordable homes, aspirations on working towards net zero and improvements in transport links and broadband connectivity.
Cllr Dadd was criticised by opposition councillors for inserting a last-minute amendment into the plan stating that achieving the objectives was dependent on the council and its partners having the available funding.
Defending the addition, Cllr Dadd said:
“It’s only pointing out to the public that we may not be able to achieve what we want to achieve because of a shift in financial climate.”
Accusing the Conservative leadership of blaming the Labour Government for its financial challenges, Councillor Stuart Parsons, leader of the Independent Group on the authority, said:
“Not once in the last 14 years did you put a caveat about your own party’s control of finances and activities and I find it really quite tasteless that you’re doing it in relation to Labour — it’s just not acceptable.”
In response, Cllr Dadd said:
“The biggest threat to this authority over the next 12 months will be a spending review.
“The government has been elected and they have an agenda that could be disastrous in our ability to deliver this plan.”
The government told the Local Democracy Reporting Service that its local government spending review would conclude in late spring and would provide a multi-year funding settlement, alongside funding reform in 2026/27.
A Ministry for Housing, Communities and Local Government spokesperson added:
“Despite the inheritance we have been given, we will fix the foundations of local government, providing long-term certainty to the sector so we can put councils on a more stable and secure footing.
“We have confirmed up to £69bn in funding in England through the local government finance settlement, including £2bn in additional grant funding, to help local authorities drive forward the government’s Plan for Change."
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