Concern as Scarborough Town Council Reduces Council Tax Precept by 1% but Community Grants by 62%

Scarborough Town Council's newly approved budget for 2026/27 has highlighted a sharp divide between the council’s leadership and opposition members over the future of community funding.

While the Reform-led authority celebrated a one per cent reduction in the precept, critics have expressed alarm over a significant reduction in community grants, which they argue will impact the town's most vulnerable organisations.

The budget, passed during a full council meeting on Wednesday, 21 January, sets a precept intended to raise £380,000, a slight decrease from the £384,000 raised the previous year. Despite the lower tax burden, the council has allocated substantial funds to specific areas, including £70,000 for Christmas lights, £70,000 for "service responsibilities" such as grit bins and roadside verges, and nearly £123,000 for staffing.

However, the decision to reduce the community grants budget from £50,000 to £19,000—a 62% cut—has become a flashpoint for debate. Independent Councillor Rich Maw voiced strong concerns regarding the impact on local groups and questioned the council's decision to maintain high reserves. Councillor Maw stated:

"Community grants are being slashed from 50,000 to 19,000, cutting support for exactly the organizations that make a tangible difference to people's lives.

Meanwhile, reserves are swelling to almost 192,000. Money sitting idle instead of helping our town.

There is a £1,000 earmarked for civic engagement, so-called end of term ceremonies. Ceremonial spending like this adds little for our residents, yet vital grants continue to be cut."

In response to the criticism, Reform Councillor William Stuart defended the budget as a "planned and responsible approach," arguing that the figures must be viewed in the context of the council's entire two-year term rather than as a single-year snapshot. He highlighted that the initial high allocation was a strategic choice to stimulate local activity. Councillor Stuart stated:

"In the first year, the council allocated £50,000 to community grants, 13% of the total budget. And in this following year, it is proposed that 19,000 be allocated, around 5% of the budget. Across the 2-year life of this council, that represents £69,000, approximately 9% of the budget overall.

And when compared with 22 parish and town councils in North Yorkshire with a precept of 140 000. This places Scarborough third highest over the 2-year period.

Those funds have energized communities, supported imaginative local projects, and delivered tangible benefits. And I'm proud of this council's record on community grants."

Labour Councillor Chris Clark argued that the council's financial comparisons with other areas are flawed, noting the specific economic pressures faced by seaside communities. Councillor Clark said:

"Seaside towns face unique challenges recognized nationally through an all party parliamentary group.

Yet reform has cut one of our most valued budgets by 62% using comparisons of wealthier and inland towns except Bridlington and Filey both of those wealthier than us.

And inland towns do not share our economic realities."

Addressing the specific accusation of a 62% cut, Councillor Stuart added:

"Describing this as a 62% cut is arithmetically true but contextually misleading. The £50,000 allocation in 2025-26 was a deliberate front-loaded investment to kickstart community activity in the council's first year.

It is also worth remembering that the original outline for budget produced by the charter trustees made no provision at all for community grants. This council chose to change that.

What matters is not a single year snapshot but a two-year commitment across the life of this council, we're investing 69,000 in community grants, placing Scarborough among the strongest performers in North Yorkshire.

That is not a retreat from communities. It is planned and responsible approach."

Opposition members also questioned a ten-fold increase in the "projects" budget, which has risen to £10,000, and contrasted the grant cuts with the economic realities of the Yorkshire Coast.

The budget approval also sees a reduction in mayoral expenses, which will drop from £3,500 to £1,000. 

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