YEAR six of George Osborne's austerity measures and the light at the end of the tunnel is still very distant. Which means local authorities face difficult choices everyday. Perhaps the hardest one is to set a budget that is equitable, while cost effective, and which at the same time produces savings.

City of York Council has just announced this year's proposed expenditure and, although council tax hikes are unlikely to be universally popular, the focus seems to be heading in the right direction.

Raising taxes is always controversial but these are extraordinary times. So the decision to increase council tax alongside the cuts and to re-focus spending is sensible and necessary. Indeed that is likely to be in the minds of 56 per cent of the council’s consultation sample who said they would prefer to see this happen.

The council has the second lowest spend per head of population of any unitary council in England and there is a margin to increase expenditure in areas where it is most needed, while cutting the overall cost to the public purse. So the fact that it is increasing spending on social care, particularly for vulnerable adults and children, is especially welcome.

Another positive step is asking members to approve an average decrease of one per cent on all ‘social housing rents’ for 2016/17.

Business struggling to get back on their feet after the flooding will welcome the proposal to freeze car park charges and the increased spend on road repairs, tackling fly-tipping and graffiti which will, together, help to encourage the return of visitors and the vital income they bring.

And the small but essential extra provision for community mental health services is an important move in an area where York is failing badly.

All told, the signs are encouraging that careful thought and sensible ambition are winning the day.