As North Yorkshire Council’s pioneering 100 per cent council tax premium on second homes begins to deliver its first affordable housing projects, a local representative is warning that the very villages hosting these new homes are struggling to cope with "crumbling" infrastructure.
Councillor Michelle Donohue-Moncrieff, an independent representing Hunmanby, has sparked a debate over how the millions of pounds raised from the levy should be spent. While the council has celebrated its commitment to ring-fencing the expected £10 million annual windfall exclusively for housing projects, Cllr Donohue-Moncrieff argues that the policy overlooks the physical impact of expansion on local amenities.
The first project to benefit from the funding is a development of 15 affordable homes in Hunmanby, managed by Broadacres Housing Association. While the project aims to tackle the "critical need" for local housing, Cllr Donohue-Moncrieff told council bosses that the focus on bricks and mortar must be balanced with the needs of the community's roads and services.
Expressing her concerns, Cllr Donohue-Moncrieff stated:
"There is a problem here.
This council cannot now avoid the fact that if it is subsidizing housing to be built, it also needs to start thinking about using some of that money towards infrastructure in the places that it is being used.
It's a very laudable concept 100% ring fencing. It is not realistic when the road on which you are doing it which will access onto is literally crumbling to pieces."
The council’s leadership has remained firm on the policy. Councillor Gareth Dadd, the executive member for finance and deputy leader, described the premium as "one of the proudest policies" he has been involved in, noting that North Yorkshire is likely the only authority in the country to formally ring-fence such proceeds for housing. Council Leader Carl Les echoed this pride, emphasizing that the income is used specifically for housing rather than disappearing into the general budget.
However, the pressure on the Yorkshire Coast remains a central theme. With over 8,200 second homes in North Yorkshire—the highest number in the region—towns like Scarborough, Whitby, and Filey are at the heart of the housing crisis. At a recent meeting, Filey councillor Sam Cross voiced his opposition to the tax, suggesting it could drive residents toward Bridlington.
For Cllr Donohue-Moncrieff, the issue is not about opposing affordable housing, but about the practicalities of village life. She argued that the council must recognize the strain placed on existing systems when new developments are introduced.
She further explained the difficulty of the situation:
"I can't explain to residents how North Yorkshire Council is actually now contributing to strain on the infrastructure but it hasn't got the funding to actually support that infrastructure.
This fund needs to be used to support infrastructure as well. We can't avoid that issue any more and highways is a very laudable use of some of that money."
While the council maintains that the funding will address a range of issues—including new builds and supported housing for those with complex needs on the coast—the call for "highways" and local infrastructure support highlights a growing tension in how the Yorkshire Coast manages its future growth.
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