An almost £10 million black hole is forecast for City of York Council’s budget after it had to find a similar amount in savings last year, according to new analysis.
York officials have forecast a roughly £9.65 million budget gap for 2027/8 after planning £10.92 million-worth of savings for 2026/7 and approving a 4.99 per cent council tax hike, the BBC found.
Labour council leader Cllr Claire Douglas said they were still dealing with the consequences of years of funding cuts while finance lead Debbie Mitchell said York faced significant cost pressures.
It comes amid warnings that York could become the lowest-funded local authority in the country and lose up to £38.4 million by 2029.
The losses would come if national fair funding reforms, which ministers say are needed to redirect cash to deprived areas most in need of support, go ahead.
Ms Mitchell said York already received some of the lowest levels of funding in the country.
“Like councils across the country, we are facing significant financial pressures as demand for services continues to grow and costs rise,” she said.
“While these challenges are significant, our focus remains on protecting the services residents rely on and planning ahead to manage future pressures responsibly.
“We are standing up for York residents by making the case for fairer funding from government, while continuing to reduce costs, improve efficiency and modernise how we work.
“This includes successfully securing additional investment in York’s highways, exploring new ways to support essential services, and looking at how technologies such as AI can help us work more efficiently.”
Cllr Douglas said they were working hard to make every pound count, protect services that people rely on and keep investing in the city.
She said: “For people in York, council finances aren’t just numbers on a spreadsheet.
“They’re about whether the roads get repaired, whether our streets and parks are looked after, whether families can get support when they need it and whether an older or vulnerable person can get the care they deserve.
“Our residents deserve a fair deal and we’ll keep pushing government for the funding our city needs, so we can get on with delivering for people in every part of York.”
A Government spokesperson said they were making £78bn available to local authorities through this year’s funding settlements.
BBC Shared Data Unit analysis of council finances across the UK found they faced having to plug budget gaps worth a combined £3.8 billion in the coming financial year.
It comes after planned savings across UK councils totalled £3.2 billion in 2026/7.
More than 35 councils are to set to receive Exceptional Financial Support worth a total of £1.5 billion by the end of the current financial year.
Councils are able to borrow and sell property to cover day-to-day running costs under the scheme.
Jonathan Carr-West, chief executive of the Local Government Information Unit (LGIU) think tank, said the figures painted a picture of a sector perilously close to financial collapse.
He added while improvements had been made the overall amount of resources for local government had not grown enough to deal with astronomical cost increases for key services.
Nationally, measures to cut costs have included slashing bus routes, closing attractions and reducing support for children and young people, along with hikes to fees and charges.
Council bosses have also been looking at using artificial intelligence (AI) to save money.
More than £4.6 billion extra is being made available to councils for adult social care through the Local Government Finance Settlement which runs until 2028/9.
Core Spending Power is set to increase by £16.6 billion, 24.3 per cent, by 2028/9 compared to 2024/5, according to Government figures.
A Local Government Ministry spokesperson said they did not require councils to use AI but they encouraged it where it could free up staff to focus on public services.
The spokesperson said: “We’re making £78 billion available to local authorities across the country this year through our fair funding settlement.
“Thanks to our changes nine in ten councils in England will receive funding that matches their relative need by the end of 2028/9.”
The Queen was announced as “the most welcome visitor here at York today” as she arrived at the racecourse during a downpour.
Luckily the rain was shortlived and the sun shone for most of Camilla’s visit.
The Queen, who became patron of York Racecourse in 2024, wore a blue straw feathered Philip Treacy hat, an Anna Valentine blue dress and a Jockey Club brooch.
She met retiring jockey Joe Fanning, who made a full recovery from prostate cancer at the end of last year, on the day she revealed how difficult it had been keeping the King’s cancer diagnosis a secret.
As the Queen arrived at the venue she met “unsung heroes” of the racecourse, including a member of the St John Ambulance who has volunteered for 50 years.
She also met representatives from local organisations Bereaved Children Support York, Friends of Rowntree Park and racehorse re-homing charity New Beginnings.
Camilla watched from a box as the RAF Falcons display team performed a parachute display, before taking a salute.
The rain had been replaced with blue skies as she met Gold Cup-winning jockey Fanning on the pre-parade ring.
The 55-year-old had been honoured with a special presentation after announcing his desire to retire last month after almost 40 years.
His career had been put on hold when he was discovered to have prostate cancer, undergoing surgery earlier this year and subsequently making a full recovery.
He said he and the Queen had discussed the fact that some of her own horses would be racing at the venue later in the week, and described her as a “nice woman”.
It came on the day a short film was released by Buckingham Palace and Maggie’s cancer charity, where the Queen spoke for the first time about the difficult emotional experience of keeping the King’s cancer a secret before it was announced to the rest of the world.
Later, Camilla presented the trophy to the winner of the feature race the Juddmonte International Stakes – one of the world’s premier middle-distance races.
