North Yorkshire Council leader Carl Les has warned the authority could face a budget deficit of more than £30m by 2028, citing the loss of the rural services grant in 2024 and April employer National Insurance changes that produced an "unexpected" £22m shortfall. The government says a national package of £69bn for councils includes a £23m uplift for North Yorkshire. Local leaders urge residents and businesses to respond to the Let’s Talk Money consultation as potential service cuts and a near-5% council tax rise are considered.
North Yorkshire Leader Warns of £30m+ Budget Shortfall by 2028 and Urges Government Support
North Yorkshire Council leader Carl Les has warned the authority could face a budget deficit of more than £30m by 2028, citing the loss of the rural services grant in 2024 and April employer National Insurance changes that produced an "unexpected" £22m shortfall. The government says a national package of £69bn for councils includes a £23m uplift for North Yorkshire. Local leaders urge residents and businesses to respond to the Let’s Talk Money consultation as potential service cuts and a near-5% council tax rise are considered.
04:32 PM, 11/13/2025Economy
Stark warning over North Yorkshire finances as council urges central government help
The leader of North Yorkshire Council, Carl Les, has warned that mounting budget pressures could leave the Conservative-run authority facing a total deficit of more than £30m by 2028. He said the council is pressing ministers for greater support to manage the costs of delivering services across a large rural county.
Les highlighted two recent blows to the council’s income: the loss of the rural services grant in 2024 and changes to employer National Insurance contributions introduced in April. Together, he said, these produced an "unexpected" funding shortfall of about £22m.
"We are concerned that ministers do not fully understand the financial issues of running services in such a large rural area," Les said, adding that the council is working with local MPs to secure a fairer funding settlement.
A government spokesman earlier this year acknowledged councils had sometimes relied on "short-term solutions" and said ministers were working with local authorities to reform an "outdated system" and "fix the foundations." The government also said it is providing a national package of £69bn for councils, which includes a £23m increase for North Yorkshire.
Les warned the outlook may worsen when the government announces changes to local government funding later in the year. Council officers have warned that, without changes to funding, routine services such as grass cutting and maintenance of bus shelters could face reductions, and a council tax rise approaching 5% is being considered to help balance the books.
Together with his deputy, Gareth Dadd, Les urged residents and businesses to take part in the council’s consultation on next year’s spending plans, called Let’s Talk Money. Dadd described it as "vital" that leaders understand local priorities ahead of the budget-setting process and highlighted continuing pressures on services for children and young people with special educational needs and adult social care.
What residents can do: Take part in the Let’s Talk Money consultation to help set priorities and influence how the council responds to funding pressures.