Scarborough Town Council Cuts it's Precept by 1%

Scarborough Town Council has approved its annual budget for 2026/27, a decision marked by a 1 per cent reduction in it's council tax precept.

At the authority’s first full meeting of the year on Wednesday, 21 January, the Reform-led council passed the budget with 10 votes in favour, two against, and one abstention.

The council’s precept is set to raise £380,000, down from £384,000 the previous year. While the reduction was welcomed by Reform councillors as a necessary relief for residents, opposition members criticised the plan as "shockingly unambitious," pointing to a significant reduction in community grant funding.

Reform Councillor William Stuart defended the financial plan, arguing that it protects residents during a period of intense financial pressure. He stated:

“This budget delivers a clear and positive outcome for residents by reducing the precept in cash terms at a time of sustained cost of living pressures.

Set at 380,000, the precept represents a 4,000 reduction on the previous year. And when inflation is taken into account, a reduction of over 4% in real terms.

For a Band D household, the annual cost remains under £30 and will be lower next year than this.

At a time when other tiers of local government continue to apply maximum increases, this Council has chosen a different path, demonstrating that sound financial management can protect residents while still delivering services, investing in communities, and strengthening the council's financial position.”

Councillor Stuart further emphasised that the cut was a deliberate response to the cost of living crisis, noting:

“Our precept has not increased, it has been reduced. This is deliberate recognition that residents are facing a cost of living crisis, having to make difficult choices between food, heating, clothing, and how to pay the next bill.

This budget makes a clear statement that this council understands those pressures and is cutting his cloth accordingly while still delivering for the people of Scarborough.

In addition to reducing the precept, this budget earmarks 150,000 for the delivery of services transferred from North Yorkshire Council including version maintenance, grit bins, Christmas lights, and other areas still to be finalized. Many residents understandably see this as an additional burden, particularly given the significant increases in council tax levy by the unitary authority.”

This year's Scarborough Town Council precept for a Band D property worked out at £28.88, a one percent reduction would see that fall to £28.59, a reduction of 29p per year.

Independent Councillor Rich Maw expressed outrage at the budget's priorities, claiming that roughly half of the funds are being swallowed by administrative costs. He commented:

“The proposed budget is shockingly unambitious. The lead group have focused almost entirely on keeping the precept low and padding administrative costs. While the real needs of our residents are left by the wayside.

Roughly half of this budget goes on administration, staffing, IT, legal fees, and outsource services. Huge chunks go to things like Christmas lights and service responsibilities.

When you strip out those items. Less than a quarter of the budget actually funds grants, events or services that benefit the people of Scarborough. I find that unacceptable.”

Councillor Maw argued that the council was "hoarding cash" and failing to invest in the community when it was needed most:

“I'm outraged because this council is failing its residents. We are being timid at a time when Scarborough needs ambition. We need investment in visible services in local projects in our community.

Scarborough's reform councillors are unfortunately prioritizing a headline grabbing lower precept over action and that is simply not good enough.

We must rethink our priorities. Residents deserve better, not a council that congratulates itself for hoarding cash while cutting support to the very communities that hold this town together.”

Specific allocations in the budget include £122,995 for staffing, £70,000 for Christmas lights, and £70,000 for service responsibilities such as roadside verges. Conversely, the community grants budget was reduced from £50,000 to £19,000, a move that Councillor Maw described as "cutting support for exactly the organisations that make a tangible difference".

The Town Mayor, Councillor Thomas Murray, viewed the budget as a moment of pride and a rejection of "tax and spend" politics. He stated:

“This is a proud moment for this council where we have took this opportunity like a bull by the horns. A moment that puts faith back into local democracy. We have done what we were put here to do.

This council's budget represents sound financial management and respect for taxpayers. Implementing a methodical approach. Doing things with purpose. making sure they are done right. We'll not just tax and spend. We'll do the work and count the pennies.

Over the two years of this council, we have one of the most generous community grant schemes, allocating £69,000 over two years while still allocating £150,000 for services we may take on and a contingency of £10,000 for projects that we may want to embark on and all the while reducing your precept.

A reduction may mean very little for some. However, you must remember for others it means a loaf of bread in the kitchen cupboard.”

The meeting also saw calls for greater transparency and cooperation. Independent Councillor Janet Jefferson abstained from the vote, citing a lack of consultation and expressing hope that future budgets would not be "just a Reform budget". Labour’s Councillor Chris Clark also questioned the transparency of the figures and suggested the motion be deferred until a consultation could be completed.

Despite these objections, the council moved forward with the 1% reduction, finalising a budget that Reform members believe strikes the right balance between fiscal responsibility and community service.

​The budget was passed with 10 votes in favour, two votes against, and one abstention.