A POLITICAL alliance between the Liberal Democrats and the Conservatives has tonight sealed City of York Council's budget for 2011/12.

The authority will have to save £21.1 million over the next year and make cuts to a string of services, with 170 jobs also set to go.

The budget was thrashed out during a fiery three-hour meeting at the Guildhall, interrupted when a group of protesters stormed the chamber in anger at the threat to services.

It was agreed after the ruling Lib Dems backed a Conservative amendment to their proposals, while the two parties teamed up to defeat the Labour group's budget plans.

The cuts will hit services for the elderly and children and young people, while library staff will be reduced and funding for York's Holocaust Memorial Day will be sliced. The council is also aiming to save £50,000 on bus subsidies and some care services face being privatised.

But the Lib Dems have pledged an extra £2 million for adult social care, £132,000 for a jobs fighting fund, £700,000 for a building insultation programme and £1 million for the Leeman Road flood defence scheme.

The Tory amendments, which won through on a 24-22 vote, include £100,000 for a graduate trainee scheme, £50,000 for a Promoting York fund, £100,000 towards free childcare for 20 disadvantaged children and £93,000 to train volunteers, while a £1.4 million scheme to build a new council office in Acomb will be put on hold.

Labour had vowed to stave off just under £1 million in service cuts, maintain library staff levels, Holocaust Memorial Day funding and teenage pregnancy projects, reduce spending on agency staff by £125,000, increase respite care funding and freeze ResPark charges.

Tonight's meeting also confirmed council tax levels in York will be frozen next year.

Council leader Andrew Waller told the meeting: "Where else in the country could a council leader say that this month we will start building council houses, work is in progress for two new primary schools and work has started on a £2 million refurbishment of the Barbican?

"Our budget will do what we have a duty to do for the residents of York and provide good quality services for all."

Coun Ian Gillies, who leads the Conservative group, said: "We believe there is enough money available to provide necessary council services to a high standard and help those who need our help.

"What there isn't the money for are inefficiencies, waste, pie-in-the-sky schemes and vanity projects."

Labour's amendment was defeated by 25 votes to 20, despite the party's leader Coun James Alexander telling councillors: "These cuts will be devastating and I urge you to put loyalty to the people of York aboce loyalty to your parties.

"Our budget shows we understand and we care. We are supporting reform and engagement with residents, not cuts and closures."

Green group leader Coun Andy D'Agorne voiced his party's "total opposition" to the "savage" cuts agenda, saying: "We see it as crucial to try to minimise the impact on local services to the most vulnerable and protect jobs, but not at the expense of driving down wages through the privatisation of council care services."