TAXPAYERS in York are bracing themselves for another big council tax rise after a "disastrous" central Government cash settlement.

Council leader Steve Galloway said it "beggared belief" that the Government had awarded York a 4.3 per cent rise, below the national average of 4.7 per cent for a unitary authority.

He hinted that York's council tax rise could be about 12 per cent, which would put more than £100 on the average, or Band D, bill, putting it past £1,000 for the first time.

He said savings would have to be found in education and social services even if tax bills went up by that amount.

Coun Galloway said: "We will be considering carefully how to maintain core service standards. But it is difficult to come to any other conclusion that, in education services for example, there will be some losses of staff over and above what we might have expected."

The council is already facing a budget gap of more than £8million, equivalent to a council tax rise of 23 per cent.

Labour group leader Dave Merrett said: "It is a disappointing settlement for York, but it is not absolutely a surprise and is well above inflation.

"It is going to be a difficult budget year and Councillor Galloway will have to think very carefully about curbing some of his spending plans."

MP Hugh Bayley said York's increase was above inflation, where it had been consistently below inflation under the Conservatives.

He said he would be happy to meet city council leaders to discuss funding issues.

North Yorkshire County Council will get a 5.1 per cent rise, down from 5.4 per cent last year. Scarborough District Council got 2.4 per cent, and Harrogate Borough Council 2.2 per cent.

North Yorkshire Fire Authority receives 3.9 per cent.

North Yorkshire Police Authority welcomed its £2.4 million, or 3.25 per cent, settlement.

It will be seen as good news for residents worried about a further substantial precept rise after last year's 76 per cent increase.

Updated: 10:54 Thursday, November 20, 2003