North Yorkshire Council is contemplating the next steps in it's legal action against the government following the removal of the £14m Rural Support Grant.
The authority has begun legal proceedings against the government over its decision to cancel the grant, which was paid to rural authorities to cover the extra cost of delivering services in sparsely populated areas.
A letter before action has been sent to ministers ahead of the authority seeking a judicial review of the decision.
Councillor leader, Councillor Carl Les Les, told colleagues at the authority’s full council meeting at County Hall in Northallerton this week that the government had replied to the letter.
Councillor Les said the action could cost the authority £250,000, but said the loss of the £14.3m rural services delivery grant was worth challenging.
Councillor Les says that the potential costs of pursuing legal action beyond the High Court could reach a significant amount, possibly exceeding £250,000. So far, the council has spent approximately £1,200, primarily on in-house work, with some advice from a barrister costing £625 per hour. According to Councillor Les, the council has a budget within legal services for court action.
Councillor Andy Brown voiced his concerns regarding the legal action strategy. He questioned the wisdom of taking such a "high-risk strategy" with taxpayers money.
Councillor Les acknowledged Councillor Brown's concerns, but clarified that a final decision on further action has not been made. The council is currently considering the response received from their initial letter.
Councillor Les said that North Yorkshire Council is working with other rural councils impacted by this decision who are takign a strong interest in North Yorkshire's action.
The government announced in November that it was axing the £110m fund.
The legal letter challenged the government’s decision on three points — the consultation process, the rationality of the decision and the impact it would have on the council’s public sector equality duties for the rural population.
Ministers have defended the decision to cancel the grant saying it did not properly account for rural need and a large number of predominantly rural councils received nothing from it.
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