ADMINISTRATION costs may have to be slashed to avoid double figure council tax increases or cuts to services in North Yorkshire, the council leader has warned.

North Yorkshire County Council chief John Weighell has said there must be much belt-tightening at County Hall because of a real-term reduction in government spending allowances.

"We have had a 5.1 per cent increase that seems quite generous, but it is a reduction in real terms, with a great deal of it to be passported direct to schools, leaving very little for all the other services," said Coun Weighell.

But he said the council would fight to resist sharp council tax increases. "We have had very large council tax increases over the last two years and consider it to be out of the question to go for a double figure rise again," he said.

"It's a question of tax rises and economies at County Hall in administration departments hopefully, rather than in services, but there are going to be some very hard and difficult decisions to make," he said.

Last year the council was forced to raise council tax bills by 11.5 per cent after its government grant increased by only 5.2 per cent, or £15.2 million.

This year it has risen by even less, only 5.1 per cent, resulting in £2.4 million less in the budgets than expected.

Education, highways maintenance and social services have all received £1 million less in the settlement.

"In particular, transport and highways will be hit, which has had an actual cash shortage of 0.6 per cent," said Coun Weighell.

Highways allowances have fallen due to a reduction in the number of buses and lorries on the county's roads, with overall traffic falling by almost five per cent compared with a national rise.

"And the other great cost pressure is the amount we spend on transport of children to and from schools where costs are rising quite steeply, but have only been allowed about a two per cent rise. It's putting a tremendous amount of pressure on the county council," he said.

Updated: 10:47 Monday, November 24, 2003