NEW figures show the number of student lets in York has risen again over the past year – and they are costing the city more than £3 million in council tax.

The statistics, obtained by Independent Osbaldwick councillor Mark Warters, reveal there are 2,905 student properties in the current financial year, up by 112 from 2,793 in 2010/11. The properties are exempt from paying £3,057,000 in council tax, slightly lower than the £3,306,000 exempted in 2010/11.

Coun Warters claimed while most residents are facing a council tax rise, the Government should ensure either council tax or business rates were payable on student lets. He claimed the council was not directly compensated for lost council tax revenue through Government grant, as an officer had informed him the grant formula took into account more than just exempt student properties, so this element could not be individually identified.

Coun Julie Gunnell, cabinet member for corporate services, said the Government determined exemptions and what type of business was liable for paying business rates, not the council.

She said the formula grant was a complex calculation, which took exemptions into account but the two universities and their students generated over £400 million for the local economy and employed more than 4,000 people directly.