The inflation-busting hike in York council tax bills has caused a storm of protest. City Of York Council leader STEVE GALLOWAY explains how the figure was set.

RESIDENTS will appreciate we have been grappling with the problem of trying to keep tax levels down against a background of York already being the lowest-spending unitary (all purpose) council in the country and, frankly, our having inherited a large council tax rise from our predecessors.

We make no apology for seeking in the council's budget to address street level problems such as poor cleansing standards, tackling graffiti and reducing antisocial behaviour.

But this initiative to get people to take a pride in the city, which people have told us they want to see, accounts for only a tiny part of the council budget, as does the extra one per cent investment in education. York now has the best education service in the region. We want to keep it that way.

The main table above shows, in simple terms, some of the problems we have either inherited or which have been dumped on to the city by central Government. We are faced with the problem of trying to keep tax levels down against a background of York already having the 13th lowest council tax level of the 352 local authorities in the country.

Put simply, there is less "fat" to cut away when compared with other authorities such as North Yorkshire and Leeds, where council tax levels are already much higher than in York.

We have identified several areas of unnecessary expenditure on administration which have allowed us to reduce the likely council tax increase which we inherited.

In addition, residents will have noticed that the ward committee ballot paper for local schemes for the first time included the option not to invest in any environmental improvements at all and to use the saving to reduce the council tax increase. Fully 88 per cent of residents voted against this economy measure.

Fundamentally both council tax and high car parking charges are not fair ways of raising funds to pay for local services. One is a tax on property occupation, the other a supplementary tax on travel. An alternative, based on income tax, is now being widely supported.

Residents can find more details of the campaign to "axe the tax" at the following web site www.axethetax.org

We have introduced a comprehensive transport savings package aimed at pensioners and those with disabilities. It is one of the best in the country.

The package will more than offset the increase in council tax payments, for York council services, for many pensioner couples. Details will be available at Guildhall on Monday April 5 when we will also be launching a "form filling" service for those who wish to claim a council tax rebate.

Nationally, 40 per cent of those entitled, including many pensioners, miss out on council tax benefits with £75 million not claimed (you can get a quick check on whether you might qualify at the following web site: www.entitledto.co.uk - access to which is available from public libraries).

Details of further savings for York residents, such as the frequent user car parking pass, will also be available on April 5 and on the council's own web site.

Pensioners protected from higher car charges

OLDER and disabled residents will be protected from paying higher car parking and other transport charges, following the Liberal Democrat Council budget announcement.

Pensioners and those with a disability will be able to chose how to take the £50 entitlement.

Under the proposals, residents above 60 years of age will be entitled to £50 of discounted travel tokens - more than double this year's amount - which they will be able to use on local buses, park and ride, taxi journeys, Dial And Ride services, York Wheels, or other transport links provided by social services.

An improved value bus pass which will allow the holder to buy a Day Rover ticket for 50p which will then allow them to travel anywhere in the city. The pass can also be used on park and ride services

For the first time, pensioners and those with disabilities who don't have a bus pass will be able to chose use their £50 entitlement to buy a ResPark permit - reducing the cost by more than half for 'normal' vehicles or making it free of charge for those with a small (less than 2.7m long) environmentally friendly model.

Pensioners not resident in a ResPark area will be able to use the £50 towards the cost of buying a parking permit, for use in council-owned off street car parks. The package represents the largest ever range of savings opportunities made available to older people by the City Council.

Updated: 10:09 Tuesday, March 16, 2004