City of York councillors have urged the new Chancellor to intervene to prevent changes to national funding arrangements that officials warn could leave the council substantially worse off in the coming years. Opposition and Labour leaders say the chancellor's links to York should prompt action to protect local services.
Warnings over potential shortfall
City of York Council reports and councillors have expressed alarm that the Government's proposed Fair Funding Review could reduce the council's income by as much as £38.4 million by 2029. Earlier local budget estimates suggested losses in the region of £20 million over forthcoming years; the higher figure appears in recently published national core spending power projections.
Cllr Nigel Ayre, leader of the council's Liberal Democrat opposition, said John Healey — the new Chancellor who studied in York — should "stand up for the city" and seek to reverse the funding changes. Council leader Cllr Claire Douglas said the change in national leadership by itself could present an opportunity to rebuild relations between local and national government.
"The Government had never before been so serious about passing power from Westminster to local areas."
What the Fair Funding Review proposes
The Fair Funding Review, launched under the previous Prime Minister, would alter how central government allocates money to councils. Ministers argue the revision is intended to direct a greater share of funding to more deprived areas and to ensure public services are properly financed, with an overall uplift to local government described as £3.4 billion over three years.
- Consultation with councils on the proposals took place last summer.
- Ministers say the aim is to target funding toward areas with higher levels of deprivation.
- Local projections suggest York could become one of the lowest-funded authorities per head by 2028-29 if changes proceed as currently modelled.
Local impact and next steps
City officials and councillors have been lobbying for clarity and mitigation since warnings first emerged. If the estimated losses materialise, they would affect the council's medium-term financial planning and could require difficult choices on service provision or council tax and fees.
| Item | Figure cited |
|---|---|
| Estimated loss (council budget report) | ~£20 million |
| Latest national core spending power projection | £38.4 million |
| Government-stated uplift to councils (three years) | £3.4 billion |
At the time of reporting, neither Prime Minister Andy Burnham nor Chancellor John Healey had confirmed whether they will press ahead with the changes as previously outlined. Local leaders hope that the new administration will review the proposals and consider adjustments that prevent severe hits to authorities like York.
Residents and local groups concerned about potential cuts should monitor City of York Council's budget publications and forthcoming consultations for opportunities to respond.
