Households are to see an increase in their council tax this year of nearly five per cent following the demise of the district authority.

Ryedale District Council (RDC) last year froze council tax in a bid to help residents as energy bills and the cost of living rises as part of its final budget.

However, from April 1, RDC will cease to exist and the district will become part of a ‘super’ North Yorkshire Council along with the current county council and six other districts and Scarborough Borough Council.

Senior councillors on the county council’s decision-making executive will meet on Tuesday next week (January 24) to discuss a proposed budget for the new authority which would see a rise of council tax of 4.99 per cent, equating to an increase of £83.64 for an average Band D property.

At the same meeting, members will consider an increase in councillors’ allowances.

If the proposals are approved, the basic allowance for a member of North Yorkshire Council will be £15,500 in 2023/24. Currently, within the county council, the basic allowance is £10,316.

Despite an increase in funding from the Government, the new authority is set to start the next financial year from April with a predicted shortfall of more than £30 million in its budget.

A capital budget of £323.8 million, which is used to oversee longer-term projects such as roads and schools, over the next four financial years to 2026/27 is also facing huge pressures from rising inflation.

Supporters of the new council say it will help to prevent duplication of work and also increase economies of scale, such as for buying goods and services, and saving money to protect frontline services.

North Yorkshire County Council’s leader, Cllr Carl Les, said that the opportunity to drive forward a more efficient way in delivering services to make millions of pounds in savings will be “vital” in helping to balance the new authority’s budget.

Cllr Les, who will assume the leadership of North Yorkshire Council from April 1, said: “We are facing the greatest ever financial challenges in North Yorkshire, which means we have a huge task in ensuring that services can be delivered effectively and efficiently for the public.

“However, without the opportunities presented with the launch of the new council, the situation would be a great deal worse, and it is vital that we take full advantage of these opportunities.

“We have the chance to make millions of pounds in savings by reorganising the way services are delivered, meaning that we get the most out of every pound of taxpayers’ money in North Yorkshire.”

However, Cllr Steve Mason, Liberal Democrat councillor for Amotherby and Ampleforth, said: “I just can’t shake the thought that this is being shown to be a waste of time. Residents were sold local government reorganisation with the promise that things would get better.

“Yet, we are faced with a greater lack of community engagement, a greater lack of democracy with the loss of hundreds of councillors that were close to the community, I foresee a distinct lack of determination from the ruling Tory executive on climate change and nature restoration and now we find out there will be a significant financial deficit.

“I have to ask; Where are residents benefitting from Local Government Reorganisation? Unless changes come to the new North Yorkshire Council, we will see no difference from the past 30 years. Business as usual, built on a failed financial experiment to secure more power.”

The new council will see the biggest shake-up of local government since 1974 to pave the way for a devolution deal.

North Yorkshire Council will see an increase of £22 million in additional funding from the Government in the 2023/24 financial year, principally to respond to the massive increase in social care costs and to assist in getting people out of hospitals more quickly.

The scale of the new North Yorkshire Council’s operations will see it have an overall spend of about £1.4 billion, including £343 million on schools.

If executive members agree the proposed budget, it will be considered at a full council meeting next month.