COUNCIL tax looks set to rise by five per cent in York, after a decisive vote in favour of the increase by residents.

With more than 7,000 ballot cards returned to City of York Council, it emerged today that a two to one majority had opted for the lowest of the three available options - five, 7.5 or ten per cent.

Council leader Steve Galloway said the authority would "respect" the view that had been expressed, but warned that there would be some reductions in service standards.

For example, there would be a £111,000 cut in economic development activities, equating to about five per cent of the budgets for the promotion of tourism and available development sites.

Short-stay parking charges - at Piccadilly, Castle and Bootham Row - are set to be hiked to £2 an hour.

Coun Galloway said today there would still be a £25,000 increase in investment in crime control measures, sustaining initiatives including 24-hour CCTV coverage.

He said discussions would take place this month about the future structure of the Safer York Partnership with a view to producing an effective, streamlined, approach.

The council had sent out 82,000 ballot papers, meaning that less than ten per cent of residents responded.

But Coun Galloway said last week that a two per cent response was usual for this type of poll.

He said today he was delighted to have been in the forefront of a campaign to give residents more say over key decisions affecting their lives.

"As with any other groundbreaking initiative, I am sure that we can improve the process for next year, but no council in the country has provided residents with as much information about the choices that face the authority...or so far in advance of the final budget decision being taken," he said.

"We have seen a generally well-informed debate and a conclusive result. We will respect the view that has been expressed."

He said there had been a big "thumbs up" for the exercise from participants, with 62 per cent saying they wanted to be consulted in a similar way before next year's tax decision was made.

He also revealed that the costs of the exercise were likely to be considerably less than the forecast £10,000, as many respondents had used stamps when returning their cards - thus avoiding the council having to pay postal charges.

Updated: 09:55 Monday, January 10, 2005