A farming museum in York could close and ambitious plans for a centre dedicated to the engineer of the 'bouncing bomb' could go on hold under city council plans to slash rate relief, it was claimed today.

The Yorkshire Museum of Farming at Murton, near York, which attracts 20,000 local schoolchildren a year, says it might have to close down if councillors vote tonight for changes to its discretionary rate relief (DRR) scheme.

And the Yorkshire Air Museum at Elvington says if councillors turn down its relief application, it will be £10,000 out of pocket and will have to put back ambitious plans to build a centre dedicated to Barnes Wallis, the creator of the bouncing bomb.

More than 30 other voluntary and sports groups could lose out financially if councillors back the move to limit its DRR budget to £35,630 - half its 1997 budget.

The cash-strapped council says it needs to cut the DRR funding and direct it at groups in most need. To approve all applicants this year would have cost £102,000.

The two museums along with eight properties owned by the York Archaeological Trust have been earmarked for no DRR this year. The trust will have to find £20,000 for its rates - money which could hit its appeal to restore the outside of its Archaeological Resource Centre in St Saviourgate.

To qualify for DRR one criterion is that 90 per cent of people who use the organisation must be York residents - which protesters claim no museum in the city could fulfil.

They in turn argue they are a huge asset to the city, drawing in tourists and boosting the economy.

James Stephenson, chairman of the trustees of the Yorkshire Farming Museum, said without DRR grant it might have to close. "We live on a knife-edge," he said. "We get no public support and might have to close. We provide a huge educational facility for schools in York, but we don't make money, we just try to make ends meet."

Ronald Pontefract, treasurer of the Yorkshire Air Museum, said: "If we don't have this money we are not able to consider future development. It is bound to slow things down."

Charlie Croft, acting director of leisure services for the City of York Council, said the authority would not see any group close, adding there would be other money available to help organisations struggling to pay their rates bill.

He said: "We would not revise our decision on DRR, but if it was going to create great financial hardship we would look at ways to help the organisation."

A string of sports clubs, including York Cricket and Rugby Union Club at Clifton Park and the York Indoor Bowls Club, have also been singled out as not eligible for the grant.

Chris Houseman, secretary of York and District Sports Council, will address councillors tonight and ask them to reconsider.

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