YORK council leader James Alexander has written to the Deputy Prime Minister to ask whether the Government will help fund proposed council tax reductions for people living near big new housing developments.

Cllr Alexander said in a letter to Nick Clegg that he had read with interest proposals by the DPM for homeowners to be compensated for new homes being built near them.

He said York was in desperate need of new homes to support economic development and help ensure housing was affordable but construction work would inevitably lead to some disruption for existing residents and the draft local plan currently included proposals for two new rural settlements in York.

"I understand you are proposing council tax reductions for those living near such proposed settlements."

He said councils had had significant reductions in Government funding and he was wondering what financial support the Government would be offering to back the new policy.