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Councils in Ryedale face cut in grant funding
2:18pm Wednesday 28th August 2013 in News
SCORES of parish and town councils in Ryedale face a drop in income as a result of district council chiefs planning to cut its funding.
Janet Waggott, chief executive of Ryedale District Council, said: “We are currently consulting with the councils on how they would manage a reduction in grant funding.
“The result of the consultation will be included in the budget strategy report which will be considered by the policy and resources committee on September 26.
“The reason for the proposed reduction in grant funding is because the district council faces further cuts to Government support which is in excess of £500,000, equivalent to seven per cent of the council’s net revenue budget.
“It is anticipated that the council will experience further cuts at a level of more than 10 per cent in subsequent years.”
Ms Waggott said the money was given as a one-off grant in the current financial year to reflect the reductions to the council tax base brought about by the government’s Localisation of Council Tax Support.
“It was made clear to the parish and town councils at the time that the grant could not be relied on in future years,” she said.
The news was greeted with dismay by Malton Town Council whose deputy mayor, Coun Jason Fitzgerald-Smith, said the council would face having to increase its precept or use reserves to fund its budget.
Pickering Town Council has deferred a decision until its September meeting.
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