Selby area householders are facing a council tax hike of 14.3 per cent - four times the rate of inflation.
The new year shocker will see the council tax bill for an average band-D home soar from £606 to £693.
The controversial increase, which comes into effect on April 1, comes on top of last year's inflation-busting 8.2 per cent.
But district council leader, Geoff Lynch, defended Selby's decision, saying the bills had been bumped up by a massive hike in North Yorkshire County Council tax.
The cash-strapped county council and police authority were planning increases of at least 10 per cent, which accounted for about £590 of the new bill.
Selby's share amounted to only a 6.6 per cent increase on the present council tax.
Coun Lynch said: "The council has been very prudent in its budget for 1998/99. We have restricted our expenditure to an increase of just 0.5 per cent, compared with the current year.
"Local government finance is undergoing a big review and we need to protect the council's position in terms of spending power.
"If we don't, there could well be cuts in services and job losses in the future."
District council treasurer Malcolm Kilner said Selby area householders had also been hit by a significant reduction in the amount of poll tax arrears being col-lected by the authority.
In the current financial year, residents had enjoyed a £25 "discount" on their council tax after a purge on poll tax debtors. This year the discount was only £3.65 as the amount of money left to be collected diminished.
Mr Kilner said: "This has distorted the figures, but it's Selby which has to collect the tax and at the end of the day householders will look at the bottom line.
"The council has been very prudent in its spending for the coming year. It amounts to £7.132 million, an increase of just half a per cent.
"We could have spent an extra £71,000, but it would have meant another £3 on the council tax bill."
District councillor Jack Heppenstall (Conservative) condemned the hike, saying it would hit a lot of people, especially pensioners.
He said: "It's a huge increase and too high in my opinion. I think we could make one or two savings without affecting essential services."
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