Council pledge as spending frozen

People living in Harrogate have been assured that they will not see a cut in services after the borough council approved a freeze on spending.

Council leader Mike Gardner said the authority was tightening its belt now, so it did not have to impose a large council tax rise next year.

He said the council's financial situation was "a bit dire", partly because of the credit crunch.

All council departments have been urged to make savings, he said.

The authority currently has reserves of £2.7m, and a budget of £23.8m.

'Precautionary measure'

But Mr Gardner said it would be hard for the council to maintain those reserves.

He said: "We've been saving money for a rainy day and that rainy day has come, only it is going to last for more than a day."

The only new spending that will be allowed will be on urgent matters where health and safety is a factor.

Mr Gardner said: "It's a precautionary measure but it's a necessary measure. We are feeling the stretch.

"We don't have a financial crisis at the moment but we want to prevent one.

"Our costs are going up quite a lot like everybody else's and our income is going down because people aren't spending.

"I assure Harrogate residents they will not see any reduction in services as a result of the freeze.

"We are always trying to save money but this is about continuing to save money and also saying [to department managers] don't come up with any new spending because it's not going to be approved."