A COUNCIL tax rise of 8.5 per cent was agreed for York after a stormy budget meeting.

The city council's ruling Liberal Democrat group had proposed a rise of 9.3 per cent.

But the concession was made possible after the council raided £200,000 from its £1m contingency fund.

The new rise will mean a Band D bill in York will cost about £1,070 a year, with about £849 going to City of York Council.

Most people in York live in Band C homes and will pay a total of about £950 a year.

Announcing next year's budget, council leader Steve Galloway said it would consolidate his group's achievement of providing "the best value for money" in the country.

Coun Galloway highlighted extra money for education in the budget.

He said the council was well on the way to solving the problem of hospital delayed discharges, or "bed blocking,"by the end of the financial year.

In a marathon five-hour debate that saw repeated angry exchanges, several budget amendments were tabled by the opposition Labour group.

Opposition leader Dave Merrett said at one point: "I am appalled by the behaviour of the group on the other side of the chamber. They have fobbed things off and come up with excuse after excuse."

Former Lord Mayor David Horton thundered: "The leadership of this council are undemocratic and arrogant in the extreme."

But Coun Steve Galloway said Labour's amendments were "merely headline-grabbing attempts".

He said: "They are an attempt to pretend people can have something without paying for it. These are appalling amendments, gimmicks. I can only hope they will get their act together and sooner or later we can have a credible opposition."

Labour's main amendment outlined how it would have proposed a council tax rise of 5.7 per cent, slightly lower than the rise it approved last year.

Others attacked Liberal Democrat plans to introduce evening car park charges and double the cost of a residents' parking permit.

Among the £1.45 million of savings Labour proposed to keep the council tax down to 5.7 per cent was £125,000 by axing two senior officer posts and £300,000 by combining top jobs in two major departments, including commercial services.

Labour also said it would save £350,000 by restricting proposed pensioner travel discounts.

But its resources spokesman, Dave Evans, told the meeting the group's alternative budget plans had been changed by officers, meaning many of the changes it proposed were paid for with the council's cash reserves.

Updated: 10:33 Wednesday, February 25, 2004