COUNCIL tax in York could be reduced if the Government gave the city the national average in grant support, it has been claimed.

City of York Council leader Steve Galloway told the council's executive that it would be stepping up its Fair Deal For York campaign to win improved financial support when the grant is announced in autumn.

He said if the council was just awarded the grant average provided by the Government to local authorities - which is £40 million more than York received - the authority could potentially stop many charges, including parking, and even reduce council tax.

"We need a bigger cut of the cake," Coun Galloway told members.

"If we could get an extra £40 million there would be not only the opportunity to reduce charges, but also freeze council tax levels and have a little left over to invest in other things, such as crime prevention.

"It would make a huge difference to our budget."

But Coun Galloway said he was realistic enough to accept that York would not be awarded £40 million and claimed it could manage with an extra £10 million.

The Evening Press recently revealed that York could face a budget gap of more than £10 million next year unless the city council received a better grant from the Government.

Coun Galloway criticised York MP Hugh Bayley for not making an "effective intervention" in helping to secure an increase in Government grant support.

He said York residents would be fully consulted on the council's proposed budget objectives, through a number of forums, including the ward committee budgets, resident opinion surveys and the council's website.

Mr Bayley said: "I've always led deputations to the Government to get more money for York and will continue to do so.

"Last year my representations increased York's grant from central Government between the initial allocation and final allocation by more than £1 million. Had I not achieved that, the Liberals' council tax rise would have been even higher."

Updated: 10:20 Wednesday, July 21, 2004