YORK'S economy is now estimated to have been given an £8 million boost from hosting the Tour De France Grand Depart, councillors were told last night.

The figure, considerably more than was originally anticipated, relates to the direct economic impact of the race to the city - and is part of a £103 million benefit to the region as a whole.

The news was given at a City of York Council Cabinet meeting as chief executive Kersten England also revealed that York now looks set to avoid having to pay a £100,000 fee to host part of the proposed 'Tour de Yorkshire' next May.

Ms England said negotiations were ongoing but it looked increasingly unlikely that the city would have to make the payment to the 'Amoury Sport Organisation' to be a host city for the cycle race, as was originally expected.

That would leave York having to foot an estimated £150,000 bill for costs such as stewarding and crowd management, including barriers, traffic management and spectator provision, such as sanitation, parking and power.

Cabinet members agreed to York hosting the culmination of the second day of the event on May 2, providing the host fee does not have to be paid, when the race will run from Scarborough to York for a sprint finish at the Knavesmire.

Councillors including Cllr Dafydd Williams, chairing his first Cabinet since becoming council leader, said the event would build on the hugely successful legacy of the Tour De France but they were acutely aware that the expenditure came against a backdrop of cuts in frontline services.

Meanwhile, the Cabinet agreed to press ahead with a £9.2 million refurbishment of the Guildhall as part of a project to turn it into a digital media and arts centre.

Cllr Williams said the proposals presented an opportunity to 'breathe new life into the jewel and make it shine,' while also improving public access to the historic riverside building and creating high-value jobs.

Cllr Sonja Crisp said her great fear when the council moved to its new headquarters, West Offices, had been that the Guildhall would continue to deteriorate, with damp getting in, and it currently looked 'dark and dreary' from across the river, and this scheme would address such concerns.

Liberal Democrat Cllr Ian Cuthbertson raised concerns that a business case had not yet been created for the scheme but the Cabinet agreed to the procurement of an operating partner to take forward and develop it.