York Council spent £4.5 million on buying commercial property last year including £2.8 million on 25/27 Coney Street

Community Stadium not completed, Guildhall business club costs rising

The Council has revealed, in the small print of a report to a meeting taking place this week, that “as part of the council’s response to the COVID_19 pandemic all major procurements are on hold in the short term”. This comes as no surprise with the Castle/Piccadilly development one of these projects now shelved

The Council has expected to recover its investment there using “long term revenue from commercial space”. Speculative building of that sort looks to be that thing of the past for a few years at least.

The same report reveals for the first time that, late last year, the Council purchased 25-27 Coney Street for just under £2.85 million This is the block containing the Holland and Barrett store. Just how the rent freeze during the health scare will affect income from this and similar commercial property investments is not explained in the Council report. Generally speaking, in the long run, the City has always benefited from civic investment in land and property ownership. Values in the past have always risen faster than inflation. In the short term, though, such purchases may place additional burdens on taxpayers.

There may be a bigger issue emerging at the Guildhall where delays have caused an escalation in the cost of the £20 million renovation and remodelling project. The report is, however, still claiming that the hugely expensive project will provide “a comprehensively refurbished and renewed Guildhall complex to provide a contemporary business venue for the City, the works include a green energy solution and dramatically improved facilities for community, civic and council use, with a riverside restaurant unit alongside”. Time will tell.

The report confirms that the “Community Stadium” is still a “live building site”. “All certification and testing will only recommence once Government allows the gathering of people to resume, but only at that point. When all contractors and partners are able to return safely to the site to fully complete the works, they will. Only at that point can the Stadium look to hold test events required and open thereafter”. There is no comment in the report about the commercial and community uses planned for the site or the likely timescales for bringing all spaces into use.

Anyone’s guess when the Community Stadium complex will be fully occupied

Without test events being possible, it now seems unlikely that the football or rugby clubs will be able to play at the stadium from September (the likely start of the National League football season) .

York Council breaks even, but only after calling on £1.9 million from reserves

The York Council exceeded its expenditure budget during the last financial year by nearly £2 million..

It was able to fill the gap by drawing on £1/2 million from its contingency allocation. It also raided its reserves to find an additional £1.4 million which it had previously earmarked for pay and pensioners liabilities. The final £309,000, held to repay unlawfully issued fines connected to the Lendal Bridge closure, was also utilised.

While this juggling of funds allowed the authority to emerge with a £128,000 surplus on its 2019/20 £123 million budget, the moves camouflaged large overspends on Education and Social Care. Promised efficiencies there failed to materialise.

The £1.5 million overspend by the Education department will no doubt result in a renewed focus on inessential expenditure. One trenchant “citizen auditor” has reported finding that the department apparently spent £10,000 renting rooms at a luxury hotel and golf complex in Humberside last year. The nature of the activity is being investigated.

Clearly the Council will now need to clamp down on anything other than essential expenditure.

The Council faces a new multi-million pound shortfall on its income this year as a result of the Coronavirus epidemic. It will not be able to call on the above reserves again but does have a buffer provided by the £7.4 million held in general reserves.

A meeting to discuss the report takes place on Thursday

Quality of Public Services in York

The Council has also released some information on public service quality. Unfortunately, many of the figures are not up to date. There is likely to be some cynicism about some of the results with only 20% of road surfaces in the City classified as “poor” or “very poor” by Council officials!

Council net debts mount to £289 million.

The Councils net debts increased to £289 million in the year up to April 2020.

That was an increase of £43.4 million over 12 months.

The figures are revealed in a report to a meeting taking place this week.

The Council net debts are forecast to increase to £452.4 million within the next 5 years.

This will mean that nearly 25% of Council Tax income will be spent on interest and redemption charges.

The figures don’t take into account the toll that Coronavirus has had on finances over the last 4 months.

Although interest rates are at historically low levels, the Councils income steams have been badly hit. In turn this affects the authorities ability to service its debt charges.

Projects which depend on asset sales for funding are also facing challenges. The commercial property market may be depressed for several years.

The report fails to provide an update on the assumptions made about commercial letting returns.

As well as an expanded shops portfolio, the Council has embarked on a series of projects, like the Community stadium and the Guildhall renovation, which depend partly on rent income from office and commercial space to pay for the investment.

Several Council owned offices are currently empty.

The Council, is particularly reluctant to say whether the speculative offices, which it agreed to underwrite at Monks Cross, have yet found a tenant.

How many will lose their jobs in York?

Post COVID-19 economic recovery plans

The Council has revealed that its forecast financial deficit for the current year is around £3.9 million. However, the biggest potential hit on its finances comes from a forecast £16 million loss of Business Rate and Council Tax income. This would be the result of businesses closing and unemployment rising.

The Council has still not identified how expenditure savings may be made nor has it attempted to reduce interest charge payments by trimming its capital programme.

The York Council economic development report says how it plans to help the York economy recover from the ravages of lock-down. It updates a previous plan which was criticised for a lack of identified actions, targets, and milestones.

The report says that the impact of the COVID lock down has varied across sectors but is most significant where “serving customers face-to-face is at the heart of the business model – retail, hospitality, cultural attractions and personal services”.

One aspect to the report which may cause concern is the lack of clarity on the medium-term impact on unemployment in the City. It highlights the view of the Local Enterprise Partnership which forecasts the loss of “17,500 jobs, including 6,500 in tourism and 2,400 in retail”. If true, then York would go from having almost full employment to a record 15% level.

The report says that around 15,000 people currently work in the care sector in York.

An alternative forecast, from Oxford Economics, says that if a vaccine is rolled out in 2020 then there will be a swift return to full employment. A core (more likely) forecast, based on re-openings on the current timetable and gradual lifting of all restrictions, suggests that employment will continue to grow in York despite the impact of the pandemic.

Only a second wave, and renewed lockdowns in autumn 2020, would result in permanent losses of around 3900 jobs.

So it seems, like the population as a whole, the Council doesn’t know what will happen next. The report concludes “What we are already seeing is sharp increases in benefits claims, and we need to plan for at least a short-term spike in job losses”.

Against that background it is possible to have some sympathy for the Council as they decide their short term economic recovery strategy.

One of the few measurable actions arising from the report is a request to central government for a business support grant of £15 million (possibly £10 million depending on which paragraph of the report you read, 51 or 60).

The council will also ask for £10 million for skills training.

Mostly the 1 year plan though is “talking”, “developing”, “working with”, “lobbying” and “facilitating”.

NB. The Council has revealed details of some of its visitor marketing plans. . As reported yesterday, £100,000 will be spent on marketing over the next 5 months.

Audit report raises concerns about York Council data security

A report due to be considered by a Council committee next week reveals continuing concerns about the security of personal data held by the Council.

The auditor says,

“Whilst good progress continues to be made (on Information Security & GDPR) , further improvements are required to ensure compliance with the council’s policies for handling and storing personal and confidential information. There are also a number of issues still outstanding, relating to actions agreed in July 2019, following a GDPR readiness audit. These actions relate to policies, guidance, contract clauses; the information asset register; privacy notices; mandatory data protection training; management information on data security incidents”.

No further details are provided and the level of vulnerability of Council customers to data breaches is not explored.

On the impact of Coronavirus on the Councils activities the auditor is similarly vague. He says,

“This opinion is however qualified, in light of the current coronavirus pandemic and the impact of this on the council. The opinion is based on internal audit work undertaken, and substantially completed, prior to emergency measures being implemented as a result of the pandemic.

These measures have resulted in a significant level of strain being placed on normal procedures and control arrangements. The level of impact is also changing as the situation develops.

It is therefore not possible to quantify the additional risk arising from the current short term measures or the overall impact on the framework of governance, risk management and control”.

NB. Another report, to the same meeting, claims to address the impact of the health crisis on the Councils activities. Unfortunately, it adds little to what has already been published and singularly fails to quantify the exposure that the Councils projects and revenue finance actually face.

Over 5,500 York residents to get council tax support

What is Council Tax Support? | Incommunities Website

Nearly 6,000 York residents are set to receive reduced council tax bills this week, as the council continues to provide support to residents facing financial hardship during the coronavirus pandemic.

Those who are eligible for council tax support will receive a £150 reduction on their account, spread over the remainder of the year, utilising a government grant awarded to the council.

The grant was announced in March

The grant totals over £950,000, with £868,000 already being allocated. The remaining money will be available for new customers until 31 March 2021.

Executive Member for Finance and Performance, Cllr Nigel Ayre, said:

“The coronavirus pandemic has posed significant financial challenges for many residents and that is why we are investing further funding to help support those who need it the most during this difficult time

This council tax support grants will help people who may be worrying about their financial situation. It is also another way in which we are helping the most vulnerable people in York, which has been one of our key priorities throughout the pandemic.

I would encourage anyone facing financial difficulties to access the help and support that is on offer by calling 01904 551550 or emailing COVID19help@york.gov.uk.”

Help is available if you are struggling to pay Council Tax, due to Covid-19 or other reasons

You can ask for any payments missed since April 2020 to be spread across the rest of the year up to March 2021 by e-mailing tax@york.gov.uk or calling 01904 551556
If your income has changed please let us know so we can update your Council Tax Support. You may be entitled to an increased amount. Please complete the change of circumstances form at york.gov.uk/benefits/change-circumstances-benefits
You may be eligible for more help by applying to the discretionary council tax reduction scheme at york.gov.uk/TaxReductionScheme.
Advice and support services in the City can help you stem the tide and get the right support for you. Please see a helpful list of contacts overleaf for those who can help you.

City of York Council’s Statement of Accounts

City of York Council will open its unaudited accounts for public inspection from Wednesday 1 July to Tuesday 11th August.

The annual inspection gives members of the public and local government electors certain rights in the audit process.

Any person may inspect the accounts of the council for the year ended 31 March 2020 on the City of York Council website at https://www.york.gov.uk/StatementOfAccounts, and on reasonable notice, can request access to certain related documents (comprising books, deeds, contracts, bills, vouchers and receipts) or a printed copy of the accounts.

Application should be made initially to Debbie.Mitchell@york.gov.uk

The council’s accounts are subject to external audit by Mazars LLP. For the same period Wednesday 1^st July to Tuesday 11^th August electors can question the auditor about, or make objections to, the accounts before they are signed off by the Audit & Governance Committee on 14^th September 2020.

Further details of the inspection process, elector rights and contact details can be found in the inspection notice on the council’s website at https://www.york.gov.uk/StatementOfAccounts

£1/4 million York Council expenditure so far on advertising and publicity during COVID crisis

City of York Council website home page – City of York Council

The York Council spent £285,667 on advertising and publicity during the period from the beginning on February to the end of May.

The figures for June are not yet published on the “Open Data” web site.

Of the total expenditure £189,057 was spent during May.

The largest supplier was Platinum Print of Harrogate who lodged bills totalling £137,090 last month.

Royal Mail charged £6982 to deliver Council newsletters.

The Council didn’t advertise on Minster FM, the local commercial radio station. It spent £1,500 in May with “York Mix”. There were also regular payments to The York Press.

The Councils communications strategy has been criticised for being slow to get started, confusingly complex and unnecessarily repetitive. Some key information about home deliveries was never circulated.

It is likely that, when the COVID crisis is over, an inquiry into what has been spent, why and with what authority will be launched.

Ward highway improvements list published – nothing for Westfield?

It looks like the Westfield area has been snubbed in the latest highways maintenance budget allocations.

In another “behind closed doors” decision, tens of thousands of pounds, from “delegated” ward budgets, has been allocated for highway and footpath repairs plus some other work like new parking laybys.

Areas benefiting are Bishopthorpe, Clifton, Copmanthorpe, Dringhouses, Fishergate, Guildhall, Heslington, Heworth, Hull Road, Holgate, Huntington, Micklegate and Rural West.

One of the roads omitted from repair programme

The absence of Westfield from the list is doubly surprising.

Some local roads are in an appalling condition.

Local Councillors were given lists of problem locations over 6 months ago.

Poor weather in the intervening period has seen some surfaces – such as those on the Morrell Court access road – deteriorate quite markedly.

The report to the decision meeting gives details of how much money is available for local ward Councillors to manage.

It also explains the assessment process.

“The Ward Highways Capital Scheme is a four-year programme formed from £250k p.a. of capital resources set aside from the main Highways Capital Programme. It is designed to allow wards to bring forward schemes that are important to local residents but would struggle to be prioritised as part of the main capital programme. A nominal allocation is made to each ward on a population basis. Wards are able to aggregate their allocation by carrying over / bringing forward annual allocations in order to undertake more substantial schemes.

The programme was enhanced in 19/20 through the allocation of the following one-off amounts to it:

£500k to use for highways improvements in respect of Roads and Footways
£500k to use for Walking and Cycling improvements

(NB. Details of how the walking and cycling budget is being spent were published a couple of weeks ago. Yet again no projects in the Westfield area were agreed).

The Council says the aim is to use this funding flexibly to meet the needs of wards whilst taking account of all relevant legislation and statutory guidance as highways are heavily regulated environments.

The following process is used to identify schemes:

Community Involvement Officers liaise with ward councillors, residents and key partners to identify potential schemes
The Highways team bring forward condition surveys, customer requests, and safety audits for consideration by wards to help inform their decision-making together with information showing the roads in the ward that are to be repaired through the main capital programme
Ideas are taken to a ward walk-about for initial consideration followed, where appropriate, by detailed feasibility work and any appropriate community / statutory consultation
The Highways team then form the prioritised ideas as far as possible into a coherent capital programme”

Wards not receiving an allocation were Acomb, Haxby, Heworth Without, Hull Road, Holgate and Westfield.

The list of improvements that have been agreed can be viewed by clicking here

Sleeping sickness new threat to City’s health?

Anyone hoping that the Councils post COVID strategy document would be a stimulating read may be disappointed.

A series of papers have now been published which are long on hyperbole but very short on tangible actions

Those hoping for a series of initiatives, incorporating measurable deliverables and with specific key milestones, will search in vain amongst the papers for the Executive meeting which is taking place on 25^th June.

The expectation was that clear actions would be identified to take the City through the next 3 months at least. Only the half-hearted free parking initiative fits into that narrative.

Nor has any more up to date information been provided on the nature of the Councils financial crisis. The papers simply continue to wave the shroud of an £24 million – largely unspecified – shortfall.

Additional spending is proposed on;

Supporting local businesses including the tourism sector (£100,000),
“Communities Recovery” (£250,000),
Creating places in which visitors can safely return to the City (£530,000),
Changing building access and deep cleaning (£50,000) and
ICT equipment to allow continued remote working (£500,000).

There is no mention of a freeze on new expenditure.

The report merely reports windfall savings on climate change, waste services, northern forest and local transport plan. All are the result of (unavoidable) delays caused by the lock-down.

The Council says that its capital investment programme is being “reviewed”. That means that the Council is continuing to slip further and further into debt.

The Council promises that it will have a “Big Conversation” with residents over the next 12 months.

Residents may choose to opt for something a little more robust.

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