Tough budget decisions have forced York's councillors to consider taking an expenses cut.

An increase due for special responsibility allowances is expected to be halved by City of York Council on Thursday.

It would save the authority £25,000.

Last year, councillors agreed that "wages" introduced as part of the new cabinet-style system of local government, which replaced committees, should be phased in over three years.

Special allowances for positions such as Executive or Shadow Executive membership were due to be increased this year.

But the Labour group is to propose that £50,000 which was to fund the raise is cut to only £25,000.

The proposal will be considered on Thursday when councillors meet to vote on a budget which looks to make £4.5 million of savings in the face of a £7.5 million rise in costs - and includes a proposed council tax increase of seven per cent.

Councillor Steve Galloway, leader of York's Liberal Democrat group, said: "The proposal which the Labour group will make on Thursday is that the rise that was due this year will be halved.

"I think we will support this simply because of budget pressures. I don't think it is a controversial proposal."

He said future raises to bring expenses in line with the recommendations of an independent panel which had been formed to decide their level would have to be considered in later years.

Councillors will also be told that setting of council tax levels has been delayed.

The rate was due to be finalised at Thursday's budget meeting.

But information about the level of precepts of some parish councils has not yet been received, delaying the decision until February 20.

However, parish precepts for those who will be charged them are very minimal.

The main part of the council tax increase, expected to be of seven per cent, can be decided on Thursday.

Updated: 10:23 Monday, February 12, 2001