North Yorkshire Council

Executive

21 October 2025

Devolution of Knaresborough Market to Knaresborough Town Council

Report of the Corporate Director Environment

1.0       PURPOSE OF REPORT

1.1       To update the Executive on progress of a devolution pilot project for Knaresborough Town Council to take on management and responsibility for operating the weekly charter market in Knaresborough and to recommend that the Executive approve in principle the proposal that the project is now progressed at pace, on the basis of the recommendations set out further below, to secure the transfer of the market operation to Knaresborough Town Council at the earliest possible opportunity this calendar year.

2.0       BACKGROUND

2.1       The former North Yorkshire County Council’s submission to government for the

establishment of a unitary council set out a commitment to pilot double devolution and

provide opportunities for town and parish councils that would like to manage services and assets on behalf of the now established North Yorkshire Council (NYC).

2.2       Twelve expressions of interest (EOIs) were submitted and after evaluation five were approved by the Executive on 17 October 2023 to move forward to development of a full business case. One of those was from Knaresborough Town Council (KTC), who subsequently resolved at an extraordinary meeting of their Full Council on 19 May 2025 that they agreed ‘to formally submit the Business Case to North Yorkshire Council to facilitate the proposed transfer of Knaresborough’s Chartered Market, subject to final negotiations’.

3.0       BUSINESS CASE FOR TRANSFER OF KNARESBOROUGH MARKET TO KTC

3.1       Knaresborough Market takes place each Wednesday within the town centre of Knaresborough on the highway area known as Market Place that encompasses an area of highway, pay and display car parking, and a small pedestrianised area next to the Market Cross. The market footprint continues to the southeast along a section of Silver Street before it meets the A59 / High Street.

3.2       Market stalls are currently a hybrid of self-set and those supplied and erected by NYC with the operating hours being from 0900 – 1530hrs (Summer) or 1500hrs (Winter). A Markets Officer works one day per week to oversee the coordination of the weekly market layout, onboard new traders, take payments from casual traders and resolve any operational issues. They are supported by the wider Commercial Team within Parks and Grounds.

3.3       The business case submitted by KTC for devolution contains key information on their strengths as a locally representative body, the ambition for the market to develop as an anchor for the community (and visitors) as well as details on staffing, the operating model, financial position and governance. A redacted copy of the business case has been published on the KTC website with the key points summarised in the following paragraphs.

3.4       KTC plan to build on the historic significance of the charter market as a focus for the social coherence of the local community, develop opportunities to link with the educational and voluntary sector, and to provide a platform for entrepreneurs to test out ideas within a supportive environment.

3.5       Existing KTC officers will form part of the backroom administration for market operations, alongside a specific Markets Officer role. To support with the administration of stall bookings, KTC propose to invest in software to provide an e-booking system that will integrate with existing finance software. In addition, an operative with accredited knowledge of ‘Chapter 8’ traffic management is proposed to ensure the correct temporary traffic management arrangements are in place each week to facilitate the safe operation of the market.

3.6       The decision in December 2024 by NYC to harmonise market operations through the cessation of a subsidised stall set up service, deferred by six months, has been a key consideration in developing the business case. A priority for KTC has therefore been to look to provide a continuation of a stall set up service, where required, but using their own contractor. Market research and collaboration with neighbouring town councils has identified potential suppliers of this service, in line with the priorities of local stakeholders. It is recognised that in the event of devolution of the market, NYC would support a smooth transition of the current arrangements within reasonable timescales, after a formal decision is made by the Executive

3.7       KTC have proposed a governance model where a Markets Committee would be formed (and open to the public) and report to their Full Council. In addition, the Town Clerk and Markets Officer would meet weekly. An annual meeting would be convened and attended by KTC Officers, councillors and regular market traders – with the opportunity for traders to present a report to KTCs Annual Meeting.

3.8       A financial appraisal by KTC is included in their business case which details working balances, anticipated precept income and any transfers from reserves. The business case assumes direct operating costs of approximately £50k per annum with anticipated income of £70k. However, actual income to NYC over each of the past three financial years has averaged £60k.

4.0       CONSULTATION UNDERTAKEN AND RESPONSES

4.1       To support KTC with progressing devolution proposals, NYC Officers have met directly with representatives of KTC to answer questions and to provide data and information on the weekly operation of the market over the past six months. KTC engaged consultancy support from Local Council Consultancy which was effective in bringing forward proposals in collaboration with NYC.

4.2       These proposals on devolution were presented to the Harrogate and Knaresborough Area Committee on 25 September 2025 and were positively received. The committee resolved that:

            “While enthusiasm was evident, concerns were raised regarding the financial risks to the Town Council.  A proposal was made for North Yorkshire Council to provide a clear post-decision timeline to aid planning, and share the last 12 months’ data on traders.  The slow pace of wider double devolution was noted, with challenges in delivery discussed.  Members also acknowledged the efforts of local traders and the Chamber of Trade in supporting the initiative.  Officers agreed to provide the requested information and continue their close working with KTC on this issue.”

5.0       ALTERNATIVE OPTIONS CONSIDERED

5.1       The option to not support devolution of Knaresborough Market to KTC was considered. It is recommended that this option is rejected as it would miss the opportunity to deliver on the Council’s commitment to pilot double devolution to town and parish councils.

6.0       FINANCIAL IMPLICATIONS

6.1       A principle of devolution is that proposals should be cost neutral to NYC. Under these proposals, KTC will be responsible for all costs associated with operating the market and will in turn receive all the income, with no ongoing costs for NYC. As set out in paragraph 12.2, it is anticipated there will be a modest redundancy payment borne by NYC in the region of £5k that would be met from the existing staffing budget associated with Knaresborough market.

6.2       Medium Term Financial Strategy (MTFS) savings of £12.5k per annum associated with the cost of stall set up cannot be achieved if devolving responsibility of Knaresborough Market to KTC - as the loss of income will offset this. However, devolution will help to relieve current and future pressure on commercial income targets.

6.3       In the business case submitted and through discussion, KTC have asked if NYC would continue to meet the unbudgeted cost of qualified ‘Chapter 8’ traffic management services to ensure the continuation of compliant road closures until the end of the 2025 calendar year, whilst their own arrangements are put in place. Based on the date of the Executive decision (21 October 2025) the estimated cost would be £4,950 (£450 per week) which would be met from the markets staff pay budget and may lead to a one off pressure at 25/26 year end.

7.0       PROPERTY IMPLICATIONS

7.1       To facilitate KTC’s desire to maintain a market stall set-up service, the storage of stalls between market days at the existing storage facility on Iles Lane, Knaresborough, is proposed. A review of historical costs borne by the service indicates an annual cost of £5,600 for business rates and utilities combined. This forms the basis of cost anticipated by KTC.

7.2       Property Services are undertaking the necessary steps to understand the terms on which NYC could offer to lease the existing storage facility (in conjunction with Legal Services regarding notably the rent-free proposal, see 8.2 below) and in turn to prepare the necessary disposal report for approval by Corporate Director of Resources and thereafter to negotiate suitable heads of terms with KTC.  Preliminary discussions with KTC have been around the agreement of an initial five-year lease term with break clause and potentially on a rent-free basis although all other outgoings (e.g. utilities, insurance, maintenance costs etc) would be met by KTC.

8.0       LEGAL IMPLICATIONS

8.1       Market operating right

Legal Services’ advice is that the best available method by which KTC’s secure a market operating right is for it to use its statutory right under section 50(1)(a) of the Food Act 1984 to establish a new market. The Council would retain its charter market right but not exercise its right to hold the weekly market (which Knaresborough Town Council would effectively be doing). The Council would simply use its charter market policing powers to control any rival markets within the 6.66 mile designated area on behalf of Knaresborough Town Council (and at the latter’s own cost).  

8.2       Legal property aspects

Subject to Legal Services’ advice regarding the proposed rent-free basis of the lease of the Iles Lane storage facility (specifically whether this would comply with subsidy control rules) and formal approval of the lease proposal under NYC’s Property Procedure Rules, Property Services would be able to proceed to negotiate the precise terms of the storage facility arrangement.

9.0       EQUALITIES IMPLICATIONS

9.1       An Equalities Impact Assessment (EIA) has been undertaken for the proposed changes as set out in Appendix A. The EIA assessment has not identified any adverse impacts should proposals be agreed and implemented. A post implementation review carried out 12 months after devolution has concluded would be prudent to ground truth the assessment.

10.0     CLIMATE CHANGE IMPLICATIONS

10.1     A Climate Change Impact Assessment (CCIA) has been undertaken in the preparation of this report as set out in Appendix B.  The CCIA indicates a broadly positive outcome for the proposal through a reduction in business mileage with associated CO2 emissions potentially reduced by 132kg per annum based on the current use of a standard 2 litre diesel flatbed transit van, with cab. Associated emissions from KTC as a new market operator are currently unknown but is likely to be less than the current arrangements through using local operators.

11.0     RISK MANAGEMENT IMPLICATIONS

11.1     The key risks centre on the overall environment of change created by the two priorities of markets harmonisation whilst simultaneously negotiating the devolution pilot to a successful conclusion. High levels of partnership working with consistent messaging to stakeholders will be required to mitigate risks. The development of this devolution pilot has fostered a strong sense of collaboration, and any lessons learned can be shared with other devolution work.

11.2     It is noted that recent historical income levels are slightly below that initially anticipated by KTC. However, there is headroom within the financial forecasts to accommodate this even before the potential benefits of local devolution are felt. The detail of the risk management implications are contained in Appendix C to this report.

12.0     HUMAN RESOURCES IMPLICATIONS

12.1     A small pool of six staff currently undertake the market stall erection duties for the Council. The role is not a formally evaluated one, but a fixed payment is received for the complete job of erecting and dismantling the stalls on market days. A formal 30-day staff consultation was conducted between 23 July 2024 and 21 August 2024, with no substantive comments received. However, staff indicated they were prepared to continue stall set up in the short-medium term whilst a formal decision is reached on devolution.

12.2     It is not envisaged that TUPE protection would apply to stall set up staff as this additional voluntary task is a relatively small part of these employees’ time spent in work. Advice from Human Resources and discussion with UNISON has concluded that where staff meet the necessary threshold, a redundancy payment for this element of their work would be payable upon cessation of stall set-up duties. Actual sums will need to be calculated on an individual basis in-line with specific dates for when duties will stop but would be a one-off cost and is expected to be in the region of £5k.

12.3     The current Markets Officer for the locality works 2 days per week, one each for Knaresborough and Ripon markets. In the context of devolution of Knaresborough Market to KTC, the officer would be TUPE protected for this element of their role and a formal period of consultation would need to be commenced.

12.4     To give clarity to NYC employees and the staff team at KTC it is proposed a devolution transitional phase of four weeks commences from the decision date of this paper. During this period our staff will assist with market operations, sharing operational knowledge and practical support on market days to ensure a smooth and successful transfer.

13.0     REASONS FOR RECOMMENDATIONS

13.1     The proposed transfer of operations for Knaresborough Market to KTC is supported by a business case as per the terms of the programme of double devolution pilots and would deliver on the Council’s ambition support town and parish Councils to manage services. Additionally, KTC’s proposal includes the continuation of stall-set up which is well supported locally.

14.0

RECOMMENDATIONS

i) That the operation of the weekly charter market in Knaresborough be devolved to KTC using section 50(1)(a) of the Food Act 1984, with the Council retaining its charter market right and using its policing powers inherent in that right to control any rival markets for the benefit of KTC. ii) Delegate authority to the Corporate Director of Resources, in consultation with the Assistant Chief Executive for Legal & Democratic Services to agree the transfer of market operations as detailed in this report to KTC on appropriate terms as soon as practically possible. iii) That NYC Officers continue to work in close partnership with representatives of KTC to ensure a smooth and successful transition of market operations, which should be completed within four weeks of the Executive’s decision date.

APPENDICES:

Appendix A – Equalities impact assessment

Appendix B – Climate change impact assessment

Appendix C – Risk Management Implications

BACKGROUND DOCUMENTS:

· Minute 324, Executive, 17 October 2023.

· Markets Harmonisation – Knaresborough and Ripon, Environment Directorate – Corporate Director and Executive Member – Highways and Transportation, 6 December 2024.

· Transfer of Knaresborough Market Full Business Case (Double Devolution) – Knaresborough Town Council 20 May 2025. (KTC website).

Karl Battersby

Corporate Director – Environment

County Hall

Northallerton

1 October 2025

Report Author – Jon Clubb, Head of Parks & Grounds        

Presenter of Report – Jon Clubb, Head of Parks & Grounds

Note: Members are invited to contact the author in advance of the meeting with any detailed queries or questions.