MILLIONS of pounds will be invested in York's public services if City of York Council budget proposals are approved.

The £35 million proposals add up to a 20 per cent investment increase on last year's budget.

If approved, the 2003/2004 spending plans would see money invested in schemes such as schools, roads and housing over a three-year period.

The money would be raised through Government-backed borrowing and through the sale of council land.

"The plan is being suggested to ensure the council's commitment to investing in the infrastructure and fabric of the city is placed on a firmer footing," said council leader Dave Merrett.

He said the council's capital expenditure programme, or money spent on items or works considered a long-term investment, had leapt to half-a-million pounds compared to last year's £126,000.

Coun Merrett continued: "We are certainly not 'skimping' on maintenance. In fact, as well as planning to pump millions into new projects over the next three years, we are also proposing to spend on £500,000 on rolling repairs over the next year and £300,000 in each of the remaining two years of the programme - a total of £1.1 million.

"Overall, the council's proposals for its capital programme means a 20 per cent increase of the budget and is our largest-ever capital programme.

"It is worth noting that, while we have always had very tight settlements from the Government on our general spending budget, it is allowing us to borrow substantially more to invest in things like schools and transport because of our performance - in some cases outstanding - in these areas."

Opposition and Liberal Democrat group leader Steve Galloway has already vowed to ask tough questions on whether the local taxpayer would get value for money from the proposals.

Tory leader John Galvin has yet to announce his group's stance on the budget, but said the group would look to save the local taxpayer money.

He has criticised "bureaucratic procedures" from central Government, which he claims account for between £1.5 million and £2 million of the council's yearly expenditure.

The budget proposals will go before the council's executive on Monday, before going on to the full council meeting on January 30, where the council tax level will be discussed.

A further meeting of the full council on February 20 will set the final level of council tax, taking into account the North Yorkshire Police and parish council precepts.

Updated: 09:18 Wednesday, January 15, 2003