Weighing in at more than 500 pages, York's case against capping should occupy staff at the Office of the Deputy Prime Minister for weeks to come. But city bosses hope the weighty document will help convince the Government not to restrict York's budget, as political reporter STEVE CARROLL finds out.

"THE council would like to make it clear that it did not set its council tax at a level that it thought would be in any way likely to lead to a confrontation with the Government or any likelihood of capping, and we were extremely surprised to feature in your recent announcement."

These are the words of City of York Council leader Steve Galloway and chief executive David Atkinson to the Government in The Case For York - the document which authority chiefs hope will convince the Treasury to put away its big stick and leave the city's budget alone.

The Government's decision, last month, to put York at risk of capping sent shockwaves through the Guildhall's finance team, but that disbelief was soon replaced by defiance - and a determination to challenge local government minister Phil Woolas's "designation" of the city.

Hence the 500-plus page dossier which must have landed with a thud when it was delivered to the Office of the Deputy Prime Minister late last week.

What is The Case For York? It's the evidence which aims to prove to the Treasury that York is a well run, efficient and effective local authority.

"We recognise York is not unique," the bundle's opening letter from Coun Galloway and Mr Atkinson states. "In this regard York is just one of a number of councils who are continually taking difficult decisions to reduce costs and maintain services.

"What is unique about our case is the nature of the pressures placed upon York by the tourist industry and by the need to conserve the built and natural environment of our city."

Those pressures are many. Three public inquiries - at a cost of £500,000 - the loss of £1.25 million in Government funding and the need to tackle equal pay and job evaluation are just four which will hit home this year.

The council believes that living without one of these pressures would allowed it to set the kind of council tax which the Government is now demanding.

As it is, the authority decided on a rise of 5.49 per cent, 0.5 per cent above the Government's permitted limit.

What does this mean in real terms? In a £97 million budget, York is only £280,000 away. For that amount - 7p per week off the bills of city council tax payers - the authority faces having to re-bill nearly 85,000 homes, at a cost of £170,000, unless its arguments can sway the Government.

That argument is simple. The authority says its position as a low-tax, low-spend authority should give it a break - with the prohibitive cost of rebilling an "unnecessary waste of resources".

For the forthcoming year, the council has budgeted to spend £525.03 per person - the lowest spend per head of any "all-purpose" authority. Only one unitary council has set a lower council tax than York.

As it resisted high council tax increases in the past, particularly in the late 1990s, it is now also unable to raise the kind of finance that other authorities can with a simple five per cent increase.

Against that backdrop, Guildhall finance bosses also made £7 million in efficiency savings in the most recent budget, while having to bring in new national policies, such as the introduction of free bus passes.

With its reserves on the wane, the vital contingency which helps to guard against unexpected events has not been increased. In the coming year, 60 per cent of the council's spending pressures relate to implementing national policies demanded by Whitehall.

York now wants its good record taken into account.

The authority is consistently praised for delivering cost-effective services - and now it wants its council tax rise to remain as it is at 5.49 per cent this year, with a lower increase of 4.5 per cent brought in for 2007/2008.

"This was not done with reckless disregard to the needs of taxpayers or without consideration of previous announcements," the dossier states.

"Capping York would have no real impact on the pockets of our taxpayers, and would only marginally affect the national council tax average rise," is how Coun Galloway and Mr Atkinson conclude their letter.

The consequences, if they lose the argument, are dire. More service cuts, the prospect of more job losses at the council and cuts in the cash handed to the police and fire services.

A meeting with Mr Woolas now awaits. Everyone at the Guildhall is hoping he's prepared to listen.

Council leader Steve Galloway says there is no justification for the present capping system

"The Case For York is now sitting on the Local Government Minister's desk.

Within the document, we have been able to point to the substantial body of opinion in the city that supports the case.

I am grateful to the Evening Press, residents, the four local MPs and the rich diversity of organisations - representing all sections of the local community - who have backed the council's case.

But the issue of council tax capping goes far beyond the York boundaries. If central Government feel that each year it has to single out some authorities for intervention, then eventually local public service standards will all be determined by Whitehall, rather than in the local council chamber.

From 200 miles way it may appear easy to take - say - £250,000 from the footpath maintenance budget. Local knowledge would tell a council that such an action would cost more in the long run, either because of increased insurance claims or because the action of frost could destroy a footpath surface during one winter.

Similarly, withdrawing care services from elderly or disabled people who have enjoyed, and come to depend on, the council's support over many years, is easier to do if someone else is the messenger.

I am proud of what City of York Council is achieving but I recognise there will be those who feel that we spend too much (or too little) on public services in the city. Residents will have their opportunity to give their verdict at the local polls next year. That is the way that it should be.

In the meantime, when I meet the minister shortly, I will put forcibly our case for more government grant to be released to the city.

I will say that there should be less interference from central government in the affairs of councils that are judged to be efficient by the Audit Commission.

And, most of all, I will tell him how ridiculous it would be for him to require a 7p reduction in council tax levels when the cost of rebilling everyone could be in excess of £100,000.

There is a strong case for reforming the way that council services are funded. There is no justification for the present retrospective capping system."

What leading city figures said about proposed capping

"Before taking action against COYC, we hope ministers will look again at the city's position, its good financial record, and the serious damage to services which might result from forcing the council to make precipitous cuts to its budget."

Lord Richard Best, director of the Joseph Rowntree Foundation

"As an educational leader in the city, I would deplore any reduction in support for the raft of activities which promote lifelong learning - an essential ingredient to promote full citizenship, economic wellbeing and community coherence."

Dianne Willcocks, principal York St John University College

"We are dismayed and concerned by this proposal because if it results in further cuts to the city's budget, there will be inevitable consequences for key areas such as economic development and environmental sustainability, as well as the welfare and support of marginalised, disadvantaged and vulnerable groups and individuals."

Mike Galloway, principal at York College

"While I admire your desire to control increases in council expenditure, I cannot see that doing so at such a late stage, and in effect wasting £120,000 to achieve it, is sensible."

Mark Sessions, chairman and managing director at Sessions of York

"While I fully understand the formula to which your officials have to work, it appears to the university that the outcome in this case is somewhat perverse."

Sally Neocosmos, registrar and secretary at University of York

"The parish council is aware of the many arguments that city council will be advancing to you against your proposal and wishes to state that it fully supports these arguments. It also wishes you to be aware that it strongly opposes the capping proposals as not being in the best interests of the residents of the city of York."

Alan Robinson, clerk to Rawcliffe Parish Council

Updated: 09:40 Friday, April 21, 2006