Agenda and minutes

There were no apologies, however it was noted that Councillor Michael Harrison was attending the meeting remotely and would not be able to vote on any of the items.

In regard to the Minutes it was noted in Minute 826 – Area Committee Feedback Report - that the road issue highlighted by Skipton and Ripon Area Committee should read ‘Engine Shed Lane / Wyvern Park Road’.

Resolved

That, subject to the above amendment, the public Minutes of the meeting held on 6 January 2026, having been printed and circulated, be taken as read and confirmed by the Chair as a correct record.

Councillor Gareth Dadd declared an interest in Minute 833 in relation to the Council Tax second homes premium for which he had previously been granted a dispensation.

Even though Councillor Michael Harrison would not have a vote on the matter, he declared an interest in Minute 833 as an employee of an organisation named in the Treasury Management report for which he had previously been granted a dispensation.

Members of the public may ask questions or make statements at this meeting if they have given notice to St John Harris, Principal Democratic Services Officer, and supplied the text by midday on Thursday 15 January, three working days before the day of the meeting.  Each speaker should limit themselves to 3 minutes on any item.  Members of the public who have given notice will be invited to speak:

·         at this point in the meeting if their questions/statements relate to matters which are not otherwise on the Agenda (subject to an overall time limit of 30 minutes);

·         when the relevant Agenda item is being considered if they wish to speak on a matter which is on the Agenda for this meeting.

If you are exercising your right to speak at this meeting, but do not wish to be recorded, please inform the Leader who will instruct anyone who may be taking a recording to cease while you speak.

There were no public questions or statements.

Purpose of report

To seek approval for, and make recommendations to the Council regarding:

·       Revenue Budget 2026/27 and Medium Term Financial Strategy to 2028/29

·       Capital Five Year Spending Plan

·       Treasury Management and Capital Strategy

·       Housing Revenue Account Budget 2026/27 and Medium Term Financial Plan

Considered a joint report of the Chief Executive and the Corporate Director Resources setting out the financial issues and risks for North Yorkshire Council and asking the Executive to make recommendations to the Council regarding the Revenue Budget for 2026/27, the Council Tax for 2026/27, the Medium Term Financial Strategy (MTFS) to 2028/29, the Capital Five Year Spending Plan, and the Housing Revenue Account Budget 2026/27 and Medium Term Financial Plan.

Revenue Budget for 2026/27 and Medium Term Financial Strategy to 2028/29

The Executive Member for Finance and Resources, Councillor Gareth Dadd introduced the report. He thanked officers for the quality and clarity of the budget papers and emphasised the scale of the financial challenge facing the authority, notably the reductions in government funding as a result of the Fair Funding Review and loss of Rural Services Delivery Grant, increases in employer National Insurance contributions and increasing demand for services, particularly within children’s and adults’ services. He highlighted that the proposed budget sought to balance financial sustainability with protection of priority and frontline services, made essential use of council tax flexibility to protect the vulnerable through the Council Tax Reduction Scheme, and built on the benefits of the substantial local government reorganisation savings. Further, he was pleased to note that the Council Tax Second Homes Premium introduced in 2025-26 was starting to bear fruit in the form of the delivery of low cost social housing.

The Corporate Director Resources, Gary Fielding then highlighted the following key points:

·       The proposed budget resulted in a £17m deficit in 2026-27 increasing further to £25m by 2028-29. If no new savings were brought forward then the authority would need to use £59.3m of reserves over this period. Further work was therefore required to reduce the underlying deficit.

·       The proposed budget included £27m of additional growth funding, reflecting significant demand and cost pressures across particularly children’s services and adult social care. The Whitby Harbour court judgement resulting in income being ring?fenced for harbour purposes also placed additional pressure on the General Fund.

·       The combined impact of inflation and service growth exceeded the maximum permitted Council Tax increase, making the delivery of savings unavoidable. Ongoing uncertainty remained around national policy changes, including SEND reform, adult social care funding and the national waste strategy, reinforcing the need for continued medium?term financial planning.

·       The budget proposed a council tax increase of 2.99%, together with a 2% adult social care precept, resulting in a total increase of 4.99%.

·       In the recent public consultation a majority of respondents supported an increase in Council Tax, with a significant proportion supporting levels consistent with those proposed in the report.

·       In terms of his Section 25 statement, Mr Fielding confirmed that the council was not at risk of issuing a Section 114 notice and that its financial position remained sufficiently robust. However, he cautioned that delivery of the savings programme and the development of further proposals to address the medium?term deficit were essential to maintaining this position in future years.  ...  view the full minutes text for item 833.

Recommendation

Executive approval to publish the North Yorkshire and York Local Nature Recovery Strategy (LNRS) in line with statutory guidance.

Considered a report of the Corporate Director Environment which sought approval to publish the North Yorkshire and York Local Nature Recovery Strategy (LNRS) in line with statutory guidance.

The Executive Member for Managing our Environment, Councillor Richard Foster introduced the report. He explained that the strategy provided a framework for identifying areas of existing ecological value, opportunities for enhancement, and priorities for nature recovery across North Yorkshire. He emphasised that delivery would rely heavily on partnership working, particularly with landowners and farmers, and noted the importance of future funding to support implementation.

During discussion, Members welcomed the strategy and recognised its importance in providing a shared evidence base for nature recovery and informing future planning and investment decisions. It was noted that much of the land affected was in private ownership and that long?term engagement and financial support for landowners would be critical to success. Members discussed the current uncertainty around government funding and the need for alignment with national policy and planning frameworks.

The role of parish councils, local communities and partners such as water companies was highlighted, alongside the potential role of the Mayoral Combined Authority in the longer term. Members agreed that the strategy provided a strong foundation, whilst acknowledging that further work would be required to secure funding and delivery mechanisms.

Resolved (unanimously) that the Executive approves the publication of the North Yorkshire and York Local Nature Recovery Strategy (LNRS) in line with statutory guidance.

Reasons for recommendations

North Yorkshire Council, as responsible authority, has followed all stages of the statutory requirements in the preparation of the Local Nature Recovery Strategy (LNRS) and therefore authority to publish the North Yorkshire and York Local Nature Recovery Strategy (LNRS) is recommended. This is subject to the consent to proceed to publication by the supporting authorities.

Alternative options considered

The council is required to follow the LNRS regulations and statutory guidance set out by Defra and so no alternative options have been considered.

Considered the Forward Plan for the period 9 January 2026 to 31 January 2027.

Resolved that the Forward Plan be noted.

The Executive Member for Culture, Arts and Housing, Councillor Simon Myers informed the Executive that 2026 had been designated by government as the National Year of Reading. He highlighted national concerns regarding a decline in reading for pleasure, particularly among children and young people from disadvantaged backgrounds, and outlined the opportunity for the Council to support and promote reading across the county.

In discussion, Members welcomed the national initiative and acknowledged the positive work already undertaken by schools and libraries, including reading challenges and programmes aimed at encouraging reading among children and young people. Members agreed that promoting reading for pleasure aligned well with the Council’s wider objectives around educational attainment, inclusion and wellbeing.

Resolved that the Executive:

       i.                  Notes that the Government has designated 2026 as the National Year of Reading, supported by national partners and charities to encourage reading for pleasure.

     ii.                  Recognises the benefits of reading for educational attainment, wellbeing and social inclusion.

    iii.                  Welcomes and supports the National Year of Reading and its campaign objectives, and commits to working with our partners including local libraries, schools, community groups, literacy organisations, and businesses to promote reading across our communities; and

    iv.                  Agrees that the Leader on behalf of the council, completes the online pledge stating actions the council will take to support the National Year of Reading.