City of York Council leader Steve Galloway today called on the Government to fund the £120,000 spent by the authority on complying with the new Licensing Act.

The council must find £60,000 to cover the costs of administration and meetings involved in providing hundreds of new and longer licences for pubs, clubs and restaurants.

Coun Galloway said another £60,000 had already been spent by council departments such as planning, trading standards and the environmental protection unit out of their own budgets.

But other councils, including Hambleton and East Riding of Yorkshire, said their outlay on licensing had been virtually nil and in Selby the cost was quite low.

All premises which apply for a new licence pay a fee to their local authority - but in York there is a shortfall because of the amount of work involved.

Coun Galloway said: "The government should repay the council for the expense of implementing Labour's plan.

"It is not fair that council tax payers, who did not ask for extended drinking hours, should foot the bill for new laws designed to help large brewery chains to make profits."

But York's Labour MP Hugh Bayley said council tax payers were not being asked to pay additional costs.

"The Government gave City of York Council £14 million extra funding last year, which was above the rate of inflation," he said.

"The money was intended to cover the cost of devolving licensing decisions to local level and other improvements in local services.

"If Steve Galloway can't find £60,000 out of the £14 million the Government provided, he shouldn't be running the council."

Updated: 10:10 Friday, October 14, 2005