TAXPAYERS in York face one of the biggest overall council tax increases in the country, according to latest figures.

The final bill, including demands by fire and police, will be £1,078.48 for an average home - up £90.16.

The 9.1 per cent hike is the third highest of the 101 local authorities in England and Wales which have finalised their overall bill.

But City of York Council leader Steve Galloway said he still expected York's council tax bill to be among the 20 lowest in the country.

It is the first time the actual demand to be mailed out by York City Council, which collects cash on behalf of itself and the police and fire authorities, has been calculated.

The total figure is more than three times the inflation rate, and way above the predicted 5.7 per cent national increase. The average for the Yorkshire region is expected to be 5.9 per cent.

The Chartered Institute of Public Finance and Accountancy, which published the statistics, said the national average rise for a Band D home would be £62 in 2004-2005, taking the annual payment to £1,142.

Local Government Minister Nick Raynsford has yet to announce whether any councils will be "capped". A decision will be made after he has received final returns from every local authority in the UK, on March 11.

Coun Galloway said: "We have talked at length with the Government and they understand why our council tax is what it is. For the last three years the increases have been lower than average."

He said the council had initially considered a 20 per cent increase to make up the £10 million deficit inherited from the previous Labour council but they had managed to reduce to increase.

"We can't take it any lower without adversely affecting key service standards," he said.

Updated: 10:29 Tuesday, March 02, 2004