NYCC to accept four year funding settlement
Expect more 'efficiencies' as council accepts multi-year settlement from central government.
Politics & local government
North Yorkshire County Council has decided this week to write to the Government to accept the offer of a four-year instead of annual financial settlement.
The Government has given councils an October deadline to develop efficiency plans to qualify for a four year instead of an annual budget settlement to aid financial planning through to 2020.
The settlement remains acutely challenging given that it represents the phased removal of the Government’s revenue support grant by 2020. However, it also offers a degree of certainty and the opportunity for contingency planning during a period of extreme uncertainty.
Given the national and global economic environment created by Brexit, the offer will form part of the Council’s prudent financial management and plan to maintain sensible levels of reserves as a buffer against unforeseen events.
“There is no doubt that even with this four-year settlement, the County Council faces some very tough challenges indeed,” said Cllr Carl Les, North Yorkshire’s Leader, after a meeting of the Council this week. “But I believe we are as well placed as any to ride the storm.
“During a recent peer review, when we were scrutinised by other local authorities, we were praised for our can-do attitude, our committed staff and for the tremendous grip on our finances. We have a prudent financial plan in place to help us through the choppy times ahead.”
To date North Yorkshire has delivered £116m savings, has firm plans for a further £36.3m and is already considering further ways to bridge the remaining funding gap of £14m through to 2019/20. The Council has also earmarked reserves to mitigate the risk to its savings plan should these take longer to deliver or fall short of target.
By 2020 the Government will phase out Revenue Support Grant and is committed to local government retaining 100 per cent of its business rate tax. However, with control over additional tax, councils are likely to face greater financial responsibilities.
Through all of this, the County Council says it will 'continue to do a good job in financial management' and 'encourage innovation' to protect front line services.