Scale of cuts to be revealed by chiefs facing £90m black hole

Senior politicians and officers at North Yorkshire County Council are about to embark on a series of face-to-face meetings with the public during January to outline how the multi-million pound shortfall is due to be met.

The consultations are also aimed at gleaning the public’s views on priorities in the council’s financial strategy, but leading councillors have admitted key services such as social care and highways maintenance will be affected.

The council is in the middle of a four-year programme to slash its spending by £69m by 2014/15 amid the Government’s austerity drive.

But a further council tax freeze and further changes to the Government’s funding are expected to mean the authority will have to cut spending by an extra £24m over the next two years on top of the £69m, making a total reduction of £93m by 2014/15.

The Government is due to confirm this month the exact level of funding which will be provided from Westminster to the council, but plans are already being drawn up as to where the savage cuts will be made from the start of the new financial year in April.

The council’s deputy leader, Coun Carl Les, confirmed yesterday that the financial deficit is proving to be the biggest challenge ever faced by the authority in its 39-year history.

He added: “We need to hear from people now as to where they believe the savings need to be made – if they make their views known any later then it will be no good.

“We know that our services are extremely valued, but there is no getting away from it, everything is at risk of being affected.

“That is why we are getting out to talk to as many people as possible to find out what their views are while also setting out how we intend to tackle the deficit. We are operating to such a tight timescale that is obviously making the issue even more challenging.”

More than half of the savings already made have come from reducing administration and bureaucracy, although the council is now having to conduct a wide-ranging review of every service it provides as pressure mounts on its finances.

The Yorkshire Post revealed in November the council was facing a deepening crisis after being hit by unexpected costs from a flooding disaster and the collapse of a credit union which compounded the cutbacks. The council is having to counter a total of £2.5m in unplanned costs which are placing its creaking budgets under intense pressure.

The bill for damage to roads and bridges due to extensive flooding in September caused by the worst autumn storm to hit the UK in 30 years is alone costing nearly £1.8m.

While the cost is less than the initial estimate of £3m, North Yorkshire’s taxpayers are having to foot the bill after the Government confirmed it will not step in to ease the financial burden.

The collapse of the North Yorkshire Credit Union in November after accruing outstanding debts of more than £400,000 meant the council also had to write off a £200,000 loan it provided to set up the stricken organisation in 2009.

A further £300,000 has had to be earmarked to help finance a flood defence project to protect one of the region’s worst blackspots in Pickering.

The first consultation event will be held at Belle Vue Mills in Skipton on Thursday next week, followed by another meeting at Pickering Library on January 15, Harrogate Library on January 16, Selby Library on January 17 and Richmond School on January 22. All the meetings begin at 6.30pm.

More details are available at www.northyorks.gov.uk/budget, where views can also be submitted on the council’s spending priorities.

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