Spending review – how it may affect York


There will be no cuts to government funding for the Police. North Yorkshire police however already employ fewer officers than they have budget for, so we hope those vacancies will be filled quickly now. What is less clear is what impact the Chancellors statement, that Police Commissioners would have flexibility to raise the police precept, will have locally.

Tax Credits

The Chancellor has scrapped plans to reduce working tax credits. The move has been welcomed by Local LibDem Cllr Sue Hunter

Jobs & housing

The York central site has been awarded “Enterprise Zone” status.  This means all business rates growth generated by the Zone, will be kept by the relevant local enterprise partnership and local authorities for 25 years to reinvest in local economic growth. However, there are fewer planning controls in these Zones. The York Central site is expected to provide 2000 new homes and around 80,000 sq m of office space.

£50 million will be invested in the agri-tech centre at Sandhutton

Elderly care

The Chancellor has said that Council can increase Council Tax by 2% “to help pay for increasing elderly care costs”. This means that the Tories have abandoned their policy of freezing Council Tax. However, income for Council Tax is not hypothecated to individual services, so it remains to be seen whether the government will condition this power by ring-fencing social care expenditure.

The spending statement indicates that there will be increased funding available for the NHS and for Mental Health


Basic state pension to rise by £3.35 next year to £119.30 a week


The statement says that big regional variations in grants to schools would be removed. Historically York schools have been more poorly funded than those in other areas.


The Chancellor has promised major capital investment including HS2 and electrification of the Trans-Pennine route.

However the revenue budget has seen major cuts so there is likely to be less for public transport subsidies and maybe road repairs.

Council Tax

As well as the proposed 2% increase this year, the proposals imply that York will retain more of its Business Rates (it has always been a net contributor to the national pool) but will continue to see reductions in government support grant.

The way that the York Councils budget has been funded has changed a lot over recent years.

York Council chnages in source of income

One thought on “Spending review – how it may affect York

  1. […] site has now got Enterperise Zone status and also havs finacial support formt eh Homes and Communities […]

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