Battle between council and Whitby residents over harbour income reaches court

The residents claim over a number of years huge sums have been “siphoned off” by Scarborough Borough Council into general funds when they should have been ring-fenced for the use of the harbour.

For the past six years the council’s annual accounts have not been signed off because of objections from the group, called Fight 4 Whitby, over how it classifies income and expenditure from harbour land, including its car parks.

Last year the council’s external auditors Mazars ruled that only a court can make a determination on the extent of harbour land.

In a brief statement, the council confirmed that the claim “has been issued in court in accordance with the requirements of Mazars’ statutory recommendation”.

A spokesman for Fight 4 Whitby said the issue had gone on for “six years and counting” and they had repeatedly asked the council to state its arguments.

Campaigners estimate that the amount of money which should have been ring-fenced for the harbour is in the order of a minimum of £1m to £1.25m a year from 2015 to 2016 onwards.

But a judge who will hear arguments from barristers from both sides could decide to go further back in time.

The spokesman said they thought the case would probably be heard at a court in London, adding: “We have asked repeatedly for their (Scarborough Council's) arguments. We have to wait until they make their submission to the court.”

The group has raised more than £35,000 to fight the case but the spokesman said they needed more.