2023/24 Council Budget: Proposals for investment in York’s communities despite unprecedented financial challenges
Draft budget proposals for the 2023-24 financial year, published earlier today (4th Jan), look to stabilise the Council’s financial position despite a period of rampant inflation and continuing decline in central Government support.
Prudent management of the Council’s budget since 2019 means that, despite these challenges, York’s Liberal Democrats have been able to invest a further £19 million, particularly in adult and children social care, as well as provide further targeted support for local communities facing the cost-of-living crisis and to help address lingering issues from the pandemic, such as mental health support, community safety, local area improvements and bus service recovery.
The Council would also continue its transformational £480m capital investment programme to continue key city regeneration projects, improve the city’s road network and infrastructure, tackle the climate emergency, accelerate the delivery of flood defences and affordable housing.
Years of cuts from central government have seen funding for City of York Council slashed by half since 2015/16 (settlement funding has fallen from £53mil to £26mil in real terms). This has been further compounded by the challenges brought about by the pandemic, record inflation and increasing demand for services. Councils in England are facing additional cost pressures of £3.4 billion in 2023/24, rising to £4.5 billion in 2024/25.
Due to these cuts, in 2021/22, York could spend just £706 per person on the essential services we rely on – the second lowest amount in the country. Councils such as Kensington & Chelsea has almost twice as much spending power as York, at £1,305 per person, £599 more than York. If York was to receive even the average spend per person, the city would benefit from an extra £16.5m each year.
Recognising the rise in demand for services and the Government’s failure to get to grips with the care crisis, budget proposals would increase spending by £5 million in adult and children social care. This will ensure that the city’s most vulnerable residents receive the care and support they need in their communities.
The 2023/24 draft budget will also propose the direct investment in local communities, including:
• £250k to provide additional support to financially vulnerable residents with the current Cost of Living Crisis
• £250k to allow local wards to invest directly in improvements to local communities, form installing new benches to repairing local roads
• £150k to improve community safety, tackling anti social behaviour hotspots, including through funding of extra specialist youth support workers
• £100k to support recovery of residents facing substance misuse problems
• £100k to support critical services that promote better mental health and wellbeing and provide support to those residents with autism
• £100k to incentivise the use of public transport locally to ensure the local bus network can be maintained
• £50k to grit cycle and pedestrian routes
Despite the Government passing on a Tax bombshell to local residents through increases in regressive and outdated council taxation, if proposals for a council tax rise are approved, York’s Council Tax would still be amongst the lowest regionally and nationally - over £100 less each year compared to national average.
Councillor Keith Aspden, Liberal Democrat Leader of the Council, commented:
“This budget recognises the financial reality facing councils, as this Government fails to live up to their promises of fixing social care and supporting local services as inflation spirals - instead they have chosen to pass on a tax bombshell to the public by forcing councils to rise council tax to sustain crucial service delivery.
“These proposals will ensure we can continue to provide the services which matter most to York’s residents, from care services protecting the most vulnerable in our city, to road maintenance, delivering affordable homes and waste service improvements. As the cost of living crisis continues to hit the worst-off hardest, we also plan to invest directly to support them and York’s communities.
“York remains at the bottom of central Government spending tables as Council funding has been slashed by over 50% since 2015/16. Despite this and as many Labour and Conservative councils prepare for significantly worse cuts, this administration is putting residents and communities first and continuing investment in key services, which are needed now more than ever.
“There are difficult decisions to be made, but these proposals will see us continue to deliver on York’s residents’ priorities - investing in social care, protecting frontline services, supporting the most vulnerable, and accelerating a sustainable growth to benefit the city’s communities and businesses.”