A business leader warned today that the cost of the flooding across North Yorkshire will come to many millions of pounds.

Adam Sinclair, of York and North Yorkshire Chamber of Commerce, spoke out as a former Mayor of Malton called for a national state of emergency as Ryedale District Council admitted resources were being stretched to the limit.

Martin Dales said local authorities and emergency services were doing a superb job in Ryedale and elsewhere, but needed greater resources.

"This is a serious situation which needs serious resourcing now in what other countries would be a national state of emergency."

He spoke out after Ryedale suspended normal services such as refuse collections to concentrate on the flooding crisis, with Chief Executive Harold Mosely saying the authority was coping at the moment but admitting: "If the floods continue past Friday, we will have staffing and logistics problems."

Mayor of Norton Margaret Taylor spoke of her feelings of "helplessness" at the continued floods in her town but said calls for a state of emergency were "overkill".

Ryedale MP John Greenway felt that there may be a case for declaring a state of emergency to help businesses not insured against the floods. He felt the authorities had the situation in hand but added: "If the situation gets worse in the next 72 hours it might be that the Government may have to take this course of action."

Thirty houses at Norton and Old Malton are under water, with scores more at risk if floodwaters rise further.

Elsewhere in North Yorkshire, the floods continued to cause chaos:

*GNER trains from the south were halted at York because of flooding, with buses laid on to take passengers on to Darlington and services on to Scotland.

*The Environment Agency said the situation in the county was stable, but warned that 20mm of rain was due to fall in the next 20 hours..

Mr Sinclair, chairman of the chamber's Retail Committee, said the full costs were impossible to estimate at this stage, but would run into many millions of pounds.

"It is an extremely difficult time for all businesses in York taking into account the disruptions caused by flooding, railway safety regulations and the potential fuel crisis."

Deputy Prime Minister John Prescott is visiting the floods in York, and possibly Malton, tomorrow.

In York, the Ouse dropped two inches overnight and was due to peak at lunchtime today, but was not expected to exceed yesterday's peak of 16 feet above normal.

But the agency said it was possible the Ouse could then rise even higher than yesterday's peak later in the week because of more rain today.

"Our worry is that the ground is now not soaking up the rain and all the rain is running straight into the river - the catchment is at full capacity.

"We do not expect it to rise above the level of the Ouse barrier, but we are closely monitoring the situation."

Newton-on-Ouse and Beningbrough were both hit by flooding from the River Ouse, while at least one home in Alne, near Easingwold, was flooded after the small River Kyle, which runs through the village, burst its banks.

Children at Easingwold School who live in the Tollerton and Linton-on-Ouse areas were sent home early yesterday.

Back roads around Tollerton were almost impassable because of standing water and the only clear way in and out of the village was on the road to and from the A19.

At Malton, residents are being warned of the health risks connected with coming into contact with the floodwater because of sewage being pushed back up the drains.