York Council’s three political parties have reacted to the Spending Review, with some welcoming announcements for the city while others said it had been short-changed.
The council’s Labour Leader Coun Claire Douglas said funding for a planned Government Hub at York Central was a vote of confidence in the city, helping to provide good-quality jobs.
Liberal Democrat opposition Deputy Leader Coun Paula Widdowson said York and North Yorkshire was only getting around £94m in transport funding compared to £380m pledged by the previous Conservative Government.
Coun Chris Steward, leader of the Conservative group, said the York Central pledge had rehashed previous announcements while the detail on a promised bus franchising pilot was non-existent.
It comes after Labour Chancellor Rachel Reeves unveiled the Government’s plans for spending for the coming years on Wednesday, June 11.
The Chancellor told Parliament chancellor told Parliament the review aimed to deliver security, economic growth and make the NHS fit for the future.
Announcements affecting York included £244m pledged to complete a number of Government Hubs which aim to move civil servants outside London.
A hub planned in the York Central development where around 2,600 government staff are are set to be based is due to receive a share of the funding.
York and North Yorkshire is also set for a pilot to explore bus franchising in rural areas with the backing of a portion of a £750m pot to improve services.
The funding comes as the region’s combined authority continues to chart the way forward for how bus services will work locally in the future.
The Local Democracy Reporting Service (LDRS) understands further announcements related to infrastructure funding are expected next week.
That comes as York’s Station Gateway scheme faces an £18.5m shortfall and as the estimated cost of the Outer Ring Road dualling scheme has increased by almost £100m to £164m.
Speaking after the chancellor’s speech in Parliament on Wednesday, Labour’s Coun Douglas said the Spending Review reflected the tough choices facing the Government.
She added that while additional support for children’s social care and a special educational needs and disabilities (SEND) review were welcome, councils would still have to find savings going forward.
The Labour council leader said: “There’s plenty of positives for York and the average increase in local government spending power of 3.1 per cent in real terms means that along with careful and responsible financial management of the council in recent years, our challenges may not be as severe.
“However, we will need to await further details from the Government before we can properly assess the impact of the Spending Review on council finances but it gives us greater certainty, with a three-year funding settlement expected in December.
“York attracting the bus franchising pilot funding through its membership of York and North Yorkshire Combined Authority is the start of a process to improve bus services and significantly increase the number of bus trips taken.”
Liberal Democrat Deputy Leader Coun Widdowson said the reduction in transport funding represented a loss in transport funding of more than £280m for the region.
She added that if the bus franchising pilot failed it could see services that people come to rely on withdrawn.
The Liberal Democrat said: “York and North Yorkshire has been short-changed by this Spending Review.
“The York Central Government Hub was already promised, it’s the largest regeneration project the city has seen in decades, and the Government couldn’t risk the backlash of pulling it.
“A pilot scheme for bus franchising could be promising but it raises real concerns, this is not the strategic investment our city was promised.”
Conservative Coun Steward said the Labour Government was going for broke on spending after previously smashing businesses and residents with tax hikes.
The Conservative group leader added the review was the latest in a Labour Government that had made one u-turn after another while creating a potential debt spiral.
Coun Steward said: “It is some time since it was confirmed there would be a Government Hub at York Central, all people want to know is who the Government will employ there as the nature of the hub will have a big bearing on the area’s growth.
“Instead we are in this bizarre world of parts of the scheme being threatened and then endlessly reannounced, rather than any real progress.
“I welcome the news of a bus franchising pilot in the region but detail seems non existent, franchising is nowhere near as complicated as the years of delay on it would give the impression of it being.”
By: Joe Gerrard, LDRS
