City of York Council Approves Challenging Council Budget for 2026/27

It’s that time of year again when the dreaded brown envelope from the council lands on the doormat. For residents in York, the latest news is that council tax is set to go up. On Thursday 12 February, City of York Council gave the green light to a 4.99% increase for the 2026/27 financial year. It’s a decision that comes at a tricky time, with many households already feeling the pinch. But it seems councils all over the country are in a similar boat, facing a challenging financial landscape that’s making it tougher to balance the books. This annual budget is designed to keep essential public services running in the city, making sure the council can still support communities while also looking to the future. It’s a move the council says is necessary to handle rising costs and protect the services that residents rely on every day, especially vital support like social care. This increase in council tax reflects a national trend, where local authorities are grappling with how to fund everything from bin collections to adult social care with a budget that's under pressure.

What’s actually changing with the budget?

So, what does a 4.99% increase actually mean for the average household in York? Let's break it down. For a typical home, which falls into what's known as Band C, this council tax increase works out to about £1.47 extra per week. That’s roughly the price of a posh coffee or a couple of sausage rolls. Looked at monthly, it’s an extra £6.40. While any increase is felt, the council has explained that this rise is mainly to cover inflation. Just like the price of a weekly shop has gone up, so has the cost of running the city. Think about fuel for buses and bin lorries, materials for fixing roads, and paying the wages of the people who deliver these important day-to-day services. The annual budget has to stretch to cover all these rising costs. This decision, made on 12 February 2026, is part of a wider, challenging picture for public finances across the whole country. The approved budget aims to ensure that the services residents see and use daily can continue without major disruption, which is a key priority for the council.

Where is the money going?

A big question for residents will be where this extra money from the council tax is heading. The plan focuses on protecting the most essential services. A significant chunk of the increase, 2% of the total, is ring-fenced specifically for adult social care. This is the support that helps older and vulnerable adults in our communities live safely and with dignity. It’s a critical service that faces growing demand. But the investment isn't just for social care. The council is also putting money into what it calls "street level services." This includes giving the Neighbourhood Caretakers Team a boost to help keep communities looking tidy and improving how weeds on roads and pavements are dealt with. It’s all about boosting pride in local areas. So, while some of the budget goes towards complex services like social care, a real effort is being made to ensure day-to-day services that everyone notices are maintained and even improved. This focus on both critical care and visible community upkeep is central to the new budget, ensuring the investment benefits all residents in one way or another.

The bigger picture for York

While managing the budget for day-to-day services is a huge task, the council is also looking at the long-term future of the city. The big idea is to create more opportunities, new homes, and better jobs for residents. How? By attracting major investment from outside the council’s own limited budget. This means working with the Government, the region’s Mayor, and private companies to bring new money into York. By getting others to fund the big, transformational projects, the council can focus its own money, including the income from council tax, on the things residents have said are most important to them, like road repairs, clean streets, and social care. It's a strategy designed to make the city's economy grow and make public services more efficient. This approach allows for long-term planning and development, ensuring that York not only maintains its current services but also builds a more prosperous future with more homes and jobs for its communities.

A word from the council leader

Explaining the tough decisions behind the new budget, Cllr Claire Douglas, Leader of City of York Council, laid out the authority's thinking. The goal, she explained, was to keep a consistent and responsible approach to the city's finances.

“This budget is about prioritising the key services our residents value and rely on, something we’re proud to have achieved.

“We know that many residents are facing pressure on their household budgets. Fairly balancing the needs of everyone in the city has been at the heart of this budget-setting process that adds £1.47 per week to the council tax charge of York’s average Band C property. This increase is in no way taken lightly.

“Following a strong message previously from residents on how we set the council’s budget, we’ve taken tough decisions to raise extra income in order to protect services, while continuing to work hard to deliver efficiencies and stabilise services.

“As well as focussing on services supporting those most in need, including children’s and adult social care, we’ve also put investment into street level services. This includes boosting pride in our communities through additional work by the Neighbourhood Caretakers Team and changing how the city’s weed control service functions to improve the look of our roads and pavements.

“Our essential day-to-day services continue to be supported, from keeping the city clean and moving, while our investment decisions are delivering new jobs and new homes.

“It’s tough, but I remain optimistic about what we can achieve for the city and the opportunities we can create for our residents by remaining consistent in a responsible approach to setting the council’s budget”.

Why is it so challenging for York?

It might seem like York is in a tough spot, and it's a feeling shared by many councils across the country. But York faces a specific set of circumstances that make its financial situation particularly challenging. Compared to other local councils, it’s among the lowest funded in the entire country. There are a couple of main reasons for this. Firstly, its council tax rates are already in the bottom 25% nationally, meaning it brings in less money from this key source than many other areas. Secondly, national funding formulas often send more money to areas with higher levels of deprivation. Because York has comparatively low levels of deprivation, it doesn't receive as much central government support. This combination means the council has a smaller pot of money to work with from the outset, making the annual budget process an especially difficult balancing act. Every pound of investment has to be carefully considered to ensure it supports the services most needed by residents in the city.