Council taxes look set to rise to help to meet the costs of improved flood defences after the Environment Agency revealed that the total bill in Yorkshire could come to a staggering £161 million.

North Yorkshire County Council is being asked to contribute £3.5 million towards flood defences next year, an increase of almost 60 per cent.

And the authority says council tax payers would have to meet the bill for the additional £1.3 million, automatically adding about 1.2 per cent to their bills.

But it emerged today that if local authorities across Yorkshire refuse to pay the extra money, the agency's plans to speed up flood defence schemes such as the £4 million project to protect Malton and Norton could be scuppered.

The crucial decision will be taken at a meeting of the Yorkshire Regional Flood Defence Committee in January, at which the Evening Press will hand over its petition calling for action to save Ryedale and Stamford Bridge from further flooding.

The Government announced in the wake of the floods that it was making an extra £51 million available nationally to pay for improved defences. But it is now becoming clear that much of the extra costs in Yorkshire would have to be met by council tax payers.

Environment Agency regional director Roger Hyde has spelt out the grim financial reality in a letter to local authorities.

He said the immediate bill for the recent flood, for things such as helicopter and pump hire, staff overtime and sandbags, came to £2.1 million.

Urgent repairs to flood defences are expected to cost another £2.1 million. And these costs could leave the agency in the region overdrawn by more than £4.3 million by next March.

He said the agency was seeking to determine where new capital investment was needed, and where planned works should be accelerated. "The initial estimate is that the cost of new and accelerated capital schemes is in the order of £161 million."

He said that to restore the agency's balances and meet extra capital costs, levies from local authorities would have to increase by 59 per cent. He also warned: "To deliver all the existing capital schemes and those new ones identified as a result of the flood will require significant levy increases in addition to the 59 per cent over the following two years."

Meetings are planned with local authority representatives this month to outline the levy proposals.

North Yorkshire County Council leader David Ashton said extra investment should come from central Government, not council tax.

"Many North Yorkshire people have suffered enough without having to pay to fund extra work on floods defences."

But Ryedale MP John Greenway said he thought that, given the wave of sympathy for flood victims, residents would not be averse to the rise as long as it ensured extra defences.

No-one was available for comment at the City of York Council.