Deputy leader Gareth Dadd said an “ideological political attack” by Labour ministers had left the Tory-led authority’s finances around £6m worse off a year.
The senior councillor made the comments yesterday (TUESDAY) as members of the council’s executive committee agreed to increase council tax by 4.99 per cent — the maximum allowed without a referendum.
The increase will mean residents in a Band D property pay an additional £92.18 a year.
Speaking about a decision by the Ministry of Housing, Communities and Local Government, led by Secretary of State Angela Rayner, to cancel the rural services delivery grant, Cllr Dadd: “With a stroke of a pen one evening we lost £14.3m.
“I dub this Rayner’s rural robbery. There is no other explanation for it.”
He added: “I know we as an administration are considering legal options, judicial review and the likes.
“I believe we have a duty to protect our position against this politically motivated ideologically driven attack ultimately upon our residents.
“One could be forgiven for thinking their motives are verging on vindictive.”
Cllr Dadd, who is executive member for finance and resources, added that he was “filled with horror” at the prospect of a future local government spending review by the government.
Councillor Simon Myers, executive member for culture, arts and housing, said North Yorkshire residents were facing an unfair burden due to a lack of central government funding.
The councillor, who represents the Mid Craven division, said: “The fact is that my residents in North Yorkshire living in a Band D property pay £900 a year more in council tax than somebody in a Band D property in the City of Westminster.
“How long our residents are supposed to pay through the nose for less services without support from central government I simply don’t know.”
The meeting at County Hall in Northallerton was told that a local government reorganisation which saw the authority become a unitary council in 2023 had helped with savings of more than £40m over the next three years.
Despite these savings, the council is still faced with using £4.9m from its reserves towards the 2025/26 budget, councillors were told.
The Ministry of Housing, Communities and Local Government has defended the decision to cancel the rural services delivery grant, saying it did not properly account for need, and a large number of predominantly rural councils received nothing from it.
Ministers say they are injecting £69bn of funding into council budgets in England to help them drive forward the government’s Plan for Change, including a £23m increase for North Yorkshire Council.
