Labour’s funding failure could leave York households facing £240 more in Council Tax

York Liberal Democrats have warned that residents could face at least £240 more in Council Tax as the council grapples with a budget gap running into tens of millions of pounds.

Papers published by City of York Council reveal the scale of the financial challenge facing the city, with a government pay day loan now being considered.

The council’s Labour leadership must explain how it intends to balance the books, whether through higher Council Tax bills, savage cuts to services or a government pay day loan that could leave taxpayers paying back the cost for years to come.

York Liberal Democrats have repeatedly warned that the Government’s Fair Funding settlement would leave York tens of millions of pounds worse off over three years. Despite repeated calls for a fairer deal, the Labour Government has failed to address those concerns, while York’s Labour Council Leader defended the settlement as the right decision for the city.

Cllr Nigel Ayre, York Liberal Democrat Group Leader, said:

“Labour has left York facing a financial crisis, and residents deserve to know what it means for their household budgets.

“We warned that this funding settlement would leave York tens of millions of pounds worse off. The Government ignored those warnings, and the Labour Council Leader defended the deal.

“Now the council faces a budget gap running into tens of millions of pounds and is preparing to discuss financial support with the Government. Residents need to know what that means in practice.

“Will Labour impose Council Tax increases that could leave households paying at least £240 more, will they pursue savage cuts that will mean some services will stop altogether, or will it take out a government pay day loan that pushes the problem into the future, and leaves taxpayers paying for it for years to come?

“Labour must explain what options it is considering.

“York needs a fair funding settlement that reflects the needs of our city. Residents should not be left paying the price for a Government that has failed to stand up for York and a council leadership that defended its decisions.”