A BUSY York street was awash with "funny money", as Labour went on the attack over tax.

Labour candidates for City of York Council stood outside The Hole In The Wall pub in High Petergate, to hand out the fake cash, printed with a picture of Liberal Democrat Leader Steve Galloway.

Labour were claiming Liberal Democrat plans to abolish council tax and replace it with local income tax could not work.

Candidate Ruth Potter said: "Liberal Democrat offers to reduce council tax then completely replace it with a new local income tax are not worth the paper they are written on.

"A Liberal Democrat council could not change a national tax system. To do this the Liberal Democrats would have to be in government, and the last time Liberals had a national Government majority was in 1906."

Liberal Democrat leader Steve Galloway hit back, saying Labour's entire campaign had been based on gimmicks. "It is fitting they should end their campaign as they started it, by trying to divert attention away from the real issues," he said.

Tory leader John Galvin said: "At the end of the day local taxation has absolutely nothing to do with local authorities."

Updated: 12:17 Wednesday, April 30, 2003