CITY MP Hugh Bayley wants to meet the man threatening to cap York's council budget.

The Labour representative has agreed to try and hold a meeting with local government minister Phil Woolas before the latter gets together with City of York Council.

Council leader Steve Galloway is set to meet Mr Woolas in the next few weeks to discuss the Government's decision to "designate" the Guildhall budget - and place the authority at risk of capping.

But, following a meeting with Coun Galloway and chief executive David Atkinson earlier this week, Mr Bayley has agreed to try and hold talks with the minister to see if a basis for compromise can be found.

Mr Woolas has branded the York's 5.49 per cent council tax and has demanded that £280,000 be trimmed from the authority's £97 million budget.

That decision has been attacked by council chiefs, and also by The Press which sent an open letter to Prime Minister Tony Blair urging him to drop the capping threat.

Dozens of residents, organisations and businesses have also written to Mr Woolas asking him to reconsider his decision. The council wants to keep its tax rise at 5.49 per cent this year, and impose a 4.5 per cent increase in 2007/2008.

Its challenge of Mr Woolas's decision, The Case for York, was sent to the Office of the Deputy Prime Minister as a 500-page dossier late last week.

Mr Bayley said: "The Government has to treat York exactly the same way as other councils, so this year it will require York's budget to comply with its capping requirement.

"In future years, I hope the Government takes on board the case the council is making (in The Case for York).

"I agree with many of the arguments that it is putting forward for the reform of the local government finance system to help unitary councils like York."

Updated: 09:11 Monday, April 24, 2006