COUNCIL tax payers face a below inflation increase in the cost of paying for police services in North Yorkshire next year.

Police chiefs are expected to agree an increase of 2.6 per cent in their precept when they meet on Monday next week. The latest retail price index figures set inflation at 3.5 per cent.

That will mean the average band D council tax payer will pay £176, compared with £171.50 for the current financial year. The total police budget will rise to about £126 million.

At the same meeting, members of North Yorkshire Police Authority, the force's watchdog, will discuss allegations that it is hoarding cash it does not need.

The claims, led by North Yorkshire MP Phil Willis, followed an audit that found "significant weaknesses" in the financial management of the authority.

Police Authority treasurer John Kirman said today that the reserves, which will rise to more than £15 million during the next three years, are to cover pensions liability and to create an emergency fund.

But he admitted that arrangements had been to prepare better financial statements and to plan more efficiently for future spending pressures.

He said: "It is important to bear in mind that the auditor's recommendations are focussed on financial administration.

"He is not saying that we have spent any money unlawfully, or inappropriately, or that we have raised money which we didn't need to.

"The authority strongly denies that it is holding inappropriate levels of reserves or that it raised money from the council tax payer which wasn't needed and that it has not properly accounted for it."

Over the last three years, the authority has increased the council tax precept by large amounts, including a notable 76 per cent rise in 2003 that was met with some criticism.

Since then, Chief Constable Della Cannings has led a massive investment programme in the force, with new vehicles, extra officers and improved building facilities and communications network.

Meanwhile, the contingency reserve is being built up to six per cent of the overall budget to pay for unforeseen large events, such as the Great Heck rail crash or the York and Selby flooding disaster.

Authority chairman Jane Kenyon said: "We are acutely aware that our decisions over the last few years have been hard on people, especially older people and people on fixed incomes.

"However, the authority has a duty to provide an efficient and effective police service and the Chief Constable just couldn't do this on the old levels of resources."

Updated: 10:26 Thursday, February 03, 2005