Councillors have voted to rip up their free car parking badges as they prepare to roll out controversial new charges across City of York Council's car parks.

The decision to scrap the permits was agreed without debate at last night's full council meeting following an independent review of members' allowances.

Until now, councillors have been able to park for free in council car parks when on official business. But Green Party councillor Andy D'Agorne led calls for the passes to be abandoned, arguing that it was "hypocritical" for free parking to be available to councillors when charges were going up across council-run car parks.

The Evening Press reflected the public outcry over increased parking prices in York in its Stop The Highway Robbery Campaign.

Members will now be reimbursed for "reasonable" travel expenses when attending council business.

Reflecting on the past year at the last full council meeting of 2004, York council leader Steve Galloway said the most taxing challenge facing York was the strain on the council's purse strings.

He claimed Whitehall was dragging its feet over the issue of whether York should receive more Government funding.

Council finance officers believe York will lose out on about £7 million each year unless the Government's funding system undergoes a radical overhaul. "The biggest immediate challenge facing the city is a financial one," said Coun Galloway.

"At the last council meeting, we passed a motion seeking local MPs' support for our Fair Grant for York campaign. Two have so far responded positively. I cannot say the same as yet about the civil servants in Nick Raynsford's department.

"They continue to prevaricate, acknowledging the truth in many of the points that we put while claiming that grant formulae stability is all important. In other words 'even if we've got it wrong, at least you know what you're going to get'."

Coun Galloway said: "The (grant) allocations may make the decisions for the council even tougher. But we will consult every household on the major options that are available to us - residents will have the opportunity to have their say before Christmas."

Meanwhile, York MP Hugh Bayley has revealed that he spoke to Mr Raynsford on Monday, and told him the city would be looking to make representations on its Government grant.

The Local Government Minister said he would not hold talks with any council until after a provisional grant total had been set later this month.

He told Mr Bayley he would then consider requests from local authorities on talks.

The MP said that he had written again to City of York Council resources chief Simon Wiles to reiterate calls for a meeting so the authority and Mr Bayley can agree a common agenda to lobby Whitehall.

Updated: 10:15 Wednesday, November 10, 2004