Council tax bills could be cut for Harrogate residents under new North Yorkshire Council

The launch of the new council in April means there is a legal requirement for all residents across the county to pay the same rate.

Currently, the Harrogate district has the highest annual bills with an average band D property paying £1,723.27, compared with the lowest level of £1,586.83 in Hambleton.

The Harrogate figure could be reduced by £23.47 under the proposals put forward by a working group of county councillors.

However, the plans do not take into the annual increase in council tax bills which is set to be approved in February.

Residents living in Harrogate town would also face a further charge if proposals to create a new town council are approved.

Councillor Gareth Dadd, deputy leader and executive member for finance at North Yorkshire County Council, said the authority was “acutely aware” of the financial pressures people are under due the cost of living crisis and that it believed the council tax proposals were the “fairest way forward for everyone”.

He also said separate plans to provide up to 100% reductions on council tax bills for low-income households would help those most in need.

He said: “The challenge to harmonise council tax bills across the county is obviously a significant one, but it is an issue we have to address before the new North Yorkshire Council is launched in April next year.

“We are very aware that those who are facing the biggest financial pressures are being hit the hardest by the cost of living.

“The proposals for council tax reduction are aimed at benefiting those who are most in need, and ensuring that thousands of people are given the greatest amount of support possible across North Yorkshire.”

Council tax is currently collected by North Yorkshire’s seven district and borough councils, but the responsibility will pass onto the new unitary authority when it takes over control of all services from adult social care to bin collections.

The figures for current bills also only cover upper-tier councils and does not include money for police and fire services, and town or parish councils.

The working group considered a number of proposals to make council tax bills across North Yorkshire the same, including moving precept levels to the lowest amount seen in Hambleton or the highest level in Harrogate.

However, the county council said this would result in “huge variations” in the amount of funding it receives for key services and that some residents would be hit with unfair rises.

If council tax bills were brought in line with Hambleton, there would be an annual reduction of funding in the region of £21 million, falling from the current level of £401.8 million to £380.4 million.

By comparison, an extra £11.3 million would be generated by increasing council tax bills to the level currently paid in the Harrogate district.

Instead, it has been recommended that the harmonisation of council tax is taken as an average of existing bills and phased across two financial years.

The proposals are due to be considered by members of North Yorkshire County Council’s executive at a meeting on Tuesday, October 18.