RULING York councillors will meet tonight to discuss possible eleventh-hour changes to the city's budget proposals.

The budget for 2004/2005 is set to be rubber stamped at Tuesday's full council meeting.

But after yesterday's meeting between leading Liberal Democrats Steve Galloway and Quentin Macdonald and local government minister Nick Raynsford, Coun Galloway hinted there could be a late budget announcement.

The two top councillors were called to meet the minister after government concern over York's proposed council tax rise.

The proposed rise on the table at the moment is 9.3 per cent.

Coun Galloway said: "Overall, we were very encouraged by the meeting and the assurances given.

"We will discuss the issues tonight and we will announce any changes to our budget proposals at the special council meeting on Tuesday."

Coun Galloway declined to confirm what, if any, changes would be made.

But he said: "There will be no cuts in services."

Coun Galloway said after the meeting that £350,000 had been allocated to help fund planned new household waste-recycling facilities for the city.

That money was announced yesterday, but independently by the Department of Environment, Food and Rural Affairs.

The grant, which is shared with North Yorkshire County Council, is to be spent over the next two years.

Ryedale District Council was awarded £669,560 to introduce a new kerbside recycling scheme from the same funding pot.

An extra £50,000 to help with recycling in York was also announced.

Updated: 10:34 Friday, February 20, 2004