PLANS for a groundbreaking city-wide referendum on next year's council budget are due to be discussed by York councillors.

If it went ahead, the mass consultation would be one of the country's first - giving 140,000 voters a direct say on how much they are taxed and how that cash is spent.

The referendum on the authority's spending plans, which could cost up to £60,000, is one of 12 options on the table at next week's executive meeting.

As the controversy over new parking charges rumbles on, the council is looking at ways of improving consultation before deciding how to fund services for 2005/6.

City of York Council leader Steve Galloway today refused to be drawn on which options the ruling Liberal Democrats favoured.

He said a statement would be made at Tuesday's meeting.

However, the Government's decision to scrap the Yorkshire regional assembly referendum appears to have hit the chances of a York referendum becoming reality.

Council bosses were investigating the possibility of the freepost regional vote being twinned with a city poll - offering residents about four "guiding" options on whether council tax should rise, freeze or drop - in a bid to cut costs.

Coun Galloway said an assembly vote would have been "helpful", and added: "We are now looking at all the options. There are no favourites at the moment."

He said prohibitive costs had helped limit the number of council tax referendums to an estimated two, in Milton Keynes and Bristol.

The council leader said plans for wider consultation on the budget were not triggered by the outcry over parking, and he said the authority fine-tuned the process each year.

Other less costly options on the table include encouraging feedback through ward committee newsletters, quizzing focus groups and and an in-depth marketing campaign targeting 300 people.

Previously, consultation has taken place with citizen panel members, through newsletters and through meetings with community and trade organisations.

A report to the executive states that it is essential the council seeks out the views of "hard to reach groups, who may have difficulty making their voices heard."

The report suggests two stages of consultation: the first in early autumn, with a more detailed review before Christmas and budget confirmation in February.

Updated: 10:46 Thursday, July 29, 2004