City of York Council Faces £15m Black Hole Under Government’s ‘Fair Funding’ Plans

York’s Chief Finance Officer has issued a stark warning in her official response to the Government’s Fair Funding 2.0 consultation.

She said:

“We estimate the impact of the measures in the proposed funding model will be to increase our existing 3-year budget gap by approximately £15m.” 

She also raised concerns that the new model leaves York unable to bring its Council Tax levels up to the national average.

Liberal Democrats are clear that they oppose such a rise which would mean huge increases for York’s residents and warn that the Government’s proposed new funding rules would effectively keep York at the bottom of the league table when it comes to funding for local services. 

Liberal Democrats are warning that York’s Labour Council will be forced to plug the gap with yet more cuts, higher fees and further Council Tax rises. 

Cllr Paul Healey, Liberal Democrat spokesperson for Finance, Performance and Major Projects said:

“This is a devastating assessment from the Council’s own finance officer. The Government’s so-called Fair Funding review is anything but fair. It threatens to dump an extra £15m burden on York’s council taxpayers whilst leaving us permanently disadvantaged.

“Liberal Democrats oppose any moves which would require a Council Tax increase above the current 4.9% ceiling, which would hit many local residents already struggling to cope with the cost of living crisis. But it seems that this Labour Government is hellbent on punishing York for effectively keeping our Council Tax low. 

“Will Labour locally stand up to their own Government’s unfair plans, or will they carry on balancing the books with cuts, higher fees and ever-increasing Council Tax bills?”