Row over use of “ring-fenced” harbour revenue for other council services to be considered by High Court
A dispute over whether revenue generated by Whitby Harbour should have been ring-fenced for harbour use in accordance with a 120-year-old Act is set to be considered by the High Court this week.
Campaigners at Fight4Whitby claim that Scarborough Borough Council unlawfully used revenue from the harbour for services throughout the borough for around 20 years.
According to the group, the Whitby Urban District Council Act 1905 states that all surplus income from harbour land must only be used for harbour use.
Sometime between 2000 and 2005, the borough council "seemingly" ended this practice, the group claims.
The group argues that harbour structures have been put at "severe risk of failure" as a result of the funds being used elsewhere.
Between 2016 and 2023, the borough council, which North Yorkshire Council has now replaced, failed to sign off its financial accounts due to the disagreement.
In 2021, an external auditor issued a statutory recommendation that the borough council apply to the courts for a resolution.
The High Court is now set to consider the dispute on 4 and 5 March.
According to the group, the court will consider how the 1905 Act should be properly applied in the circumstances and the extent of Whitby harbour land.
The group added: "Dependent on the first two questions, NYC should then have to move all funds from past years obtained from the defined Whitby Harbour land into a ringfenced harbour account, available for use in maintenance and development of the harbour."
The group is aiming to raise £10,000 to cover its legal fees and has currently raised £1,600.
North Yorkshire Council’s assistant director for transport, Paul Thompson, said: “We are committed to the delivery of a thriving harbour in Whitby and whilst we would not specifically comment on a live legal case we welcome the clarification and final determination by the courts that is required to resolve this longstanding matter.”
Adam Carey
