Budget proposals aim to ‘stabilise’ city council’s hard hit finances

The plan has been put forward to stabilise the authority’s financial position in the face of the financial problems caused by the pandemic.

Over the last year, demand for council services has increased while income has significantly fallen as a result of Covid-19.

The council is proposing to increase total spending by £2.6m on adult social care and support for children and young people, whilst investing additional resources to protect frontline services and to accelerate the city’s economic recovery.

To maintain financial stability the council is proposing to deliver savings and efficiencies totalling £7.9m, to ensure crucial services can be maintained.

Its 2021/22 budget proposes a £3.5m Covid Recovery Fund, so it can continue to fund vital services for local residents and businesses.

This fund will include:

• £40,000 to provide sustainable travel incentives to support recovery and build back confidence in public transport;
• £40,000 to support business during recovery including grants, information and networking;
• £40,000 for promoting the benefits of business membership organisations, such as the FSB or Chamber of Commerce;
• £50,000 will fund support for skills development and re-training programmes, including support for new green jobs.

The council will also continue its £600m capital investment programme to accelerate the city’s economic recovery.

Under the proposals, the council’s Capital Programme will drive regeneration, including:

• £154m to progress York Central
• £52m to improve roads and the city’s infrastructure
• £19m to progress regenerations schemes, including Castle Gateway and the Guildhall
• £64m to progress the York Outer Ring Road
• £132m to deliver more housing across the city, including affordable housing
• £12m on initiatives to tackle climate change

Councillor Keith Aspden, leader of the council, said: “In light of the unprecedented challenges we face, the council must stabilise its own financial position, so it can continue to provide crucial services to our local communities, services which have been so relied upon during this difficult time.

“That is why we are proposing a number of back office efficiencies and savings, which enables us to increase spending by £2.6m on adult social care, support for children and young people, as well as continue to protect frontline services and accelerate our economic recovery.”

Cllr Andy D’Agorne, deputy leader of the council, said: “Since the very beginning of this pandemic, the council has worked around the clock to provide critical support to those who need it most, while demand for our services has increased, and income has dramatically fallen.

“Now we must face these difficult financial challenges, so we can continue York’s efforts to build back better and continue to deliver important services to our local communities.

“Despite the huge financial challenges we face, this year’s budget proposals continue our previous investments in initiatives to tackle climate change, maintain the city’s road network and sustainable travel infrastructure and deliver on our significant active travel programme.”