“Every Single Change We Appear To Have Done Badly On” - Senior Council Official Admits York Is Set to Lose Out Again on Fair Funding

“Every Single Change We Appear To Have Done Badly On” - Senior Council Official Admits York Is Set to Lose Out Again on Fair Funding 

York’s Liberal Democrats have renewed calls for urgent action after the Council’s Chief Finance Officer admitted that York is likely to lose out on every single aspect of the Government’s proposed changes to Local Government funding arrangements, currently out for consultation. 

At a meeting of the council’s Audit & Governance Committee on 30 July, Lib Dem Councillor Andrew Hollyer asked whether there was any further information about how York is likely to fare under the proposed new national funding formula. The response from the Chief Finance Officer was stark:

“It comes as no surprise to you that we don’t think it looks good.” 

When asked what aspects were most concerning, she replied:

“Every single one. Every single change we appear to have done badly on that one.” 

Liberal Democrat councillors have criticised the Labour council administration for being ‘asleep at the wheel’, after previous comments by the Council Leader at a Full Council meeting on 17 July that “it is really hard to see exactly where we can lobby to have a positive impact for the benefit of York.” 

York is already the lowest funded council area in England per head, despite growing pressure on services and soaring costs. The Fair Funding Review was meant to fix this. But council officials now say the changes proposed by Government will make things even worse unless there's a last-minute turnaround. The Liberal Democrats have warned that this could open the door to a hike in Council Tax above the current 4.99% cap, something Labour refused to rule out at the last Full Council meeting. 

Cllr Paul Healey, Lib Dem Spokesperson for Finance, Performance and Major Projects said: 

“This should be flashing red lights and sirens for the Labour administration. The officer responsible for the council’s finances has made it crystal clear, York is being stitched up in the Fair Funding Review. The real question is this - what is Labour actually doing about it? First they fail to ask for more money for the Outer Ring Road, now they seem to have given up before the Fair Funding process has even concluded.”

Cllr Paula Widdowson, Liberal Democrat Deputy Group Leader, added: 

“We have one of the worst funding deals in the country, and now Labour’s lack of urgency risks locking that in for a generation. We need more funding, not less, to deliver the services that residents need and to tackle poverty. If Labour won’t stand up for York now, when will they? And if they can’t fix the funding gap, residents will once again be left to foot the bill through higher Council Tax.”

The Liberal Democrats are calling for the Executive Member for Finance, Cllr Katie Lomas, to ensure that the council’s response to the Government consultation is published. They are also calling on Council Leader, Cllr Claire Douglas, to publish a clear strategy on how she intends to lobby ministers and the Local Government Association to fight York’s corner before the damage becomes permanent.