A HEFTY cut in allowances is in store for some of York's leading councillors.

An independent panel has recommended that City of York Council leader Coun Steve Galloway's yearly allowance be reduced by £260 to £29,820, as part of a wide-ranging review of councillors' entitlements.

Also facing cuts is the leader of the main opposition Labour group Dave Merrett, who will see his allowance fall by 5.9 per cent, to £16,800.

However, following the review panel's proposals, the basic allowance paid to all of York's 47 councillors will be increased by £438, from £5,862 to £6,300 a year. A total increase of more than £20,000.

The biggest increase is for portfolio holders on the council's ruling executive - including member for planning and transport Ann Reid and member for education Carol Runciman. They will be entitled to a 7.5 per cent increase, taking their total allowance from £19,529 to £21,000.

The biggest loser is the chairwoman of the council's scrutiny management committee, Coun Madeleine Kirk, whose allowance will be slashed by 35.5 per cent from £19,529 to £12,600, in line with the chairmen of the planning and licensing committees, who will see their own allowances go up by 10.1 per cent.

The review panel also recommended creating a new post, chairman of the personnel committee, scrapping free car parking badges for council members, and introducing a revised system of travel allowances.

According to the council's figures, the financial changes will save, in total, £3,774 on the existing budget.

Every local authority in the country is required to have an independent remuneration panel, and councils may not make changes to allowances without first having examined a report from its panel.

However, authorities are not obliged to follow the panels' recommendations - they are only required to consider them before reaching a decision.

At a meeting earlier this week, the city's ruling executive decided to instruct its officers to revise allowances in line with the review panel's recommendations, from the start of the next municipal year.

Coun Galloway said he could not comment because the matter was "entirely up to the independent review panel".

Updated: 10:09 Saturday, October 30, 2004