City of York Council forecasts that it will overspend by £11.4 million in the next financial year. 

Continued spending would exhaust its £6.9 million general reserve and “immediate action” is needed.

As a result, car parking charges will increase by 10p; there will be a freeze on recruitment, agency, and overtime wherever possible and safe to do so, with some exceptions; an officer procurement challenge panel to review all procurement will be introduced; and alternative funding sources for remaining one off items, totalling £650,000, will be identified.

A reduction in expenditure on highways maintenance and further reductions in ward funding will also be considered.

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There is also “an opportunity” to introduce a charge for garden waste collection and disposal, according to the report, and bring in revenues of between £720,000 and £1.5 million per annum.

The 10p car park increase would raise around £145,000. 

The report states: “This is a significant overspend that is of serious concern and it is very clear that the council cannot afford to keep spending at this level. 

“The general reserve is £6.9 million and, whilst we have other earmarked reserves that we could call on if required, continued spending at this level would quickly see the council exhaust its reserves.”

The City of York Council has been contacted for further comment.

News of York council's financial concerns come just days after Birmingham City Council formally declared itself in financial distress.

Labour leader Sir Keir Starmer has said there were versions of the financial crisis at Birmingham council “across the country” as he pledged to look at a settlement for local authorities.