January 2026 Review: An Update from North Yorkshire Council
On Monday, 12th January 2026, Harrogate District Chamber of Commerce launched its new year of events in style with a packed meeting at the prestigious Rudding Park Hotel.
Nearly 100 members and guests gathered for a high-level strategic briefing from the senior leadership of North Yorkshire Council. We were delighted to welcome back Council Leader Cllr Carl Les, Chief Executive Richard Flinton, and Corporate Director for Environment Karl Battersby. The evening provided a candid roadmap for the year ahead almost two years on from the formation of the unitary authority.
A Warm Welcome from Rudding Park
Rudding Park offered immaculate hosting for the evening, providing tea, coffee, and biscuits (and even a cloakroom service) for all of our guests on arrival. The venue’s comfortable, elegant rooms set the perfect tone for both the open networking session and the subsequent formal meeting.
HDCC Management Team member Ian Howard (standing in for President Phill Holdsworth), and Chief Executive Martin Mann opened the meeting, welcoming guests to the Chamber’s first meeting of 2026, and thanking Matthew Mackaness and the team at Rudding Park for once again hosting our first meeting of a new year.
We then heard from Matthew who welcomed attendees to the venue, and spoke about recent investments in the hotel. He also introduced key members of his team, including new Business Development Manager Janet Scully, who brings five-star hospitality experience from York, and Operations Director Sarah Johnson.
The Strategic Picture: Budgets and "The Low Hanging Fruit"
North Yorkshire Council’s Chief Executive Richard Flinton then opened the main presentation by setting the context for the council’s operation - an organisation with over 9,000 staff and a £1.4bn annual spend.
He reported that the merger of the eight previous councils has been a success in terms of efficiency, with 84 separate restructures completed and over £70 million saved - surpassing the original target of £60 million. However, Richard was very clear about the financial headwinds facing the region.
The Council has been hit hard by central government funding reductions, including the loss of a £14m rural services delivery grant and a further £20m reduction following the "fairer funding" review which shifted resources to metropolitan areas. Combined with a £15m surge in demand for children’s services, the Council faces a budget gap of £25 million over the next three years.
Richard noted that while the "low hanging fruit" of savings has gone, the Council is now investing in its own R&D to use AI and automation to protect frontline services.
Housing: "A New Richmond Every Year"
A significant portion of the evening focused on the government’s aggressive housing targets. Richard revealed that the target for North Yorkshire has risen to 4,150 new homes per year. To put this scale into perspective, he explained that this requires building the equivalent of a new Richmond, Filey, or Pickering every single year.
He outlined the pressure to deliver major sites to meet this demand, including:
Maltkiln: A new settlement of circa 3,000 homes, which has now had its development plan passed by the inspector.
West Harrogate: A development of 2,500 homes where infrastructure planning, including schools and junctions, is now underway.
Infrastructure Update: Kex Gill, Potholes, and Parking
Karl Battersby provided a detailed operational update, noting that his team handles around 50,000 highways queries annually in the Harrogate area alone.
Kex Gill Realignment
Karl shared a drone flyover video of this massive £80m engineering project. He confirmed the new road is scheduled to open to traffic on 3rd June 2026. The scheme has involved planting 80,000 trees, building 9km of drainage, and installing specialist environmental protections like otter ledges and fish baffles.
Station Gateway
Karl addressed the "challenging" Harrogate Station Gateway project. While legal challenges are ongoing, he emphasised the importance of delivering the scheme to prevent the investment funding being lost to the town.
20mph Zones
Following the rollout of the 20mph zone in Harrogate - the largest ever in the county - further data is being baselined this winter with decisions on Phase 2 expected by July.
Winter Maintenance
A review of winter services has led to a greater emphasis on footway clearance and the procurement of new kit to treat urban areas like parks.
Utility Works
To tackle disruption, the Council is introducing "lane rental" charges of up to £2,500 per day on strategic roads to encourage utility companies to complete works faster.
Tourism, Economy, and the Levy Debate
The Harrogate economy appears to be bucking national trends. Richard Flinton shared that town centre vacancy rates are lower than the national average and footfall has increased year-on-year. The Convention Centre is also forecasting one of its best years ever for bookings.
However, the proposed Tourism Levy has sparked debate. Cllr Carl Les shared his personal experience from 50 years in the hotel trade. He expressed concern regarding the proposed flat rate of £2, noting that while this might be negligible for a luxury hotel guest, it could be a significant percentage of the bill for a budget B&B or campsite, potentially driving visitors elsewhere. He urged businesses to participate in the current consultation.
Q&A
A lively Q&A session covered several pressing local issues:
Parking & Dwell Time
Martin (HDCC Chief Exec) raised concerns that the removal of "pay on exit" machines limits dwell time in the town centre. Karl Battersby explained the old machines were failing but announced a new "front door" parking app is to be launched by May, which will allow users to extend their parking sessions remotely. Charlotte Gale (Charlotte Gale Photography) highlighted that poor mobile data connectivity in parts of Harrogate and Knaresborough often makes using apps difficult. Karl reassured the room that cash and card payment options at machines will remain.
Planning Delays
Matthew Mackaness asked for assurances regarding planning timelines for business investments. Richard Flinton admitted that recruiting planners is a national challenge but confirmed work is underway to improve career structures. Tina Hutchinson (Grace & Morris Architects) asked about specific system changes. Richard confirmed that a single back-office system is being rolled out to allow staff to be deployed more flexibly across the county.
West Harrogate Infrastructure
Hazel Peacock (Walk Bike Scoot) asked about infrastructure investment and congestion management for the West Harrogate development. Karl Battersby acknowledged that retrofitting infrastructure is challenging but confirmed an infrastructure delivery plan is in place, with contributions from developers and funding from Homes England focused on active travel. He also noted that a dedicated active travel lead has been appointed.
Incubator Office Space
Martin (HDCC Chief Exec) asked about the closure of the Co-Lab incubator space at Springfield House. Richard Flinton explained there were operational and safety issues but confirmed the Council is reviewing the site and is open to bringing back managed workspace if there is proven demand.
Town Council Relationship
Josie Caven (Harrogate Town Councillor) asked for a commitment to a better relationship between the new Town Council and North Yorkshire Council. Richard Flinton affirmed the Council's commitment to a strong, non-adversarial relationship, noting that the creation of town councils was a key promise of the unitary authority.
Measuring Dwell Time
A guest asked how "dwell time" data is calculated. Richard Flinton admitted he didn't have the technical formula to hand but invited businesses to suggest better ways to monitor which parts of the town are working well.
https://harrogatebid.co.uk/footfall-and-spend-report-december-2025/
Financial Outlook
A question was raised regarding the Council’s financial stability over the next 3-5 years given its statutory responsibilities. Richard Flinton expressed caution but optimism, noting that while the next three years require £25m in savings, the Council has a "ferocious grip" on finances and is not in the dangerous position of some other authorities.
Mobile Connectivity
A question submitted by Chris Dickinson (ASE Computers) asked what pressure the Council can put on mobile providers regarding poor signal in rural areas. Richard Flinton confirmed that while the Council lost a dedicated resource to the Combined Authority, they continue to lobby providers and the government to address "white spaces" in coverage.
Member News & Introductions
The meeting concluded with updates from our member community:
Radfield Home Care
Nathan Evans introduced Radfield Home Care, which helps older people remain independent in their own homes.
The Stray Ferret
The Stray Ferret’s founder, Tamsin O’Brien reminded members that entries for The Stray Ferret Business Awards close on January 28th.
Ake & Humphris
Paul Auty announced the opening of Ake & Humphris’ third store and new wine/whisky bar on Oxford Street, offering discounts to Chamber members.
Time Together
Time Together CEO, Louise Terzza promoted the upcoming Beer Festival and appealed for volunteers and sponsors.
Artus Digital
Artus Digital founder, Zach Greaves launched "BrandAMPLIFIER," a new content marketing service designed around the concept of leverage.
Harrogate Neighbours
Jamie Nicholson-Ruther from Harrogate Neighbours invited members to the Kindness Festival taking place this Saturday (17th Jan) at St Aidan’s School.
Alana Care Solutions
Colleen Gruenwald (Alana Care Solutions) requested unwanted Christmas gifts for her Burns Night raffle.
Wellbeing Support
Lynda Fussell (Dales Consulting Ltd) announced a fully funded mental health and menopause support scheme available for businesses with under 250 employees.
Meeting Conclusion
We would like to extend a huge thank you to Cllr Carl Les, Richard Flinton, and Karl Battersby for their time and transparency. We also thank Matthew Mackaness and the team at Rudding Park for their exceptional hospitality.
We look forward to seeing you at our next meeting on Monday, 9th February at Pavillions od Harrogate. Full details will be circulated shortly.
