Labour Divided as York Faces £38m Fair Funding Blow

York’s Liberal Democrats have highlighted deep divisions within the Labour Group after senior Labour figures publicly disagreed over the Government’s so-called “Fair Funding” review, which will see York lose more than £38 million over the next three years.

At Budget Council, Labour Leader Cllr Claire Douglas described the removal of funding from York as “the right thing to do”, arguing that redistribution from relatively affluent areas like York was necessary.

But Labour backbencher Cllr Kallum Taylor delivered a starkly different message, directly challenging his own Executive’s language and approach.

Cllr Taylor said he was tired of hearing the situation described by the Labour Executive as merely “challenging”, calling that word “insulting to the state of the city and the nation.” He said council funding is “an absolute mess”, “socially destructive”, and “pitting much needed services against each other.”

In a clear warning to his own leadership, he added that if the only reason for “careful language” was to protect the Labour Government, then “that careful language is not worth sticking with.” He argued that only real public pressure, not “letters or nicely worded emails”, would make the Government “bend.”

York Liberal Democrats say Cllr Taylor is right and that Labour’s Executive are utterly failing to stand up for York.

Liberal Democrat Finance spokesperson Cllr Paul Healey said:

“It is deeply disappointing that Labour voted down our amendment, especially as this is the last budget before the Labour Government’s so-called Fair Funding review really hits York.

“York is expected to lose more than £38 million when Fair Funding is fully implemented. Year after year, this council will be staring down a £10 million budget gap, even before you consider unavoidable pressures in Adult and Children’s Social Care.

“Strip those pressures out and, in the best-case scenario, £1 in every £6 from all remaining services would need to be cut. That means libraries facing closure, leisure centres under threat, three-weekly bin collections, and frontline street cleaning teams hollowed out.

“The only ‘solution’ offered by the Labour Government is to allow councils like York to slap a £150 surcharge on top of a 4.99% council tax rise.

“Labour promised at the last election to freeze council tax. Now they are defending a settlement that could force one of the biggest hikes York residents have ever seen. That is simply not credible.”

Liberal Democrats say it is “extraordinary” that the Council Leader could describe taking £38 million away from York as “the right thing to do.”

Cllr Nigel Ayre, York Liberal Democrat Group Leader added:

“Even Labour’s own councillors are now admitting the system is socially destructive. The difference is that while Cllr Taylor is willing to say it publicly, the Executive continue to hide behind careful language instead of standing up to their own Government.

“York has been handed an unfair settlement. It is about time the Council Leader stopped defending it and started fighting it. Residents deserve a council that will make the case loudly and clearly, not quietly accept cuts that will damage services for years to come.”