A £350,000 cut in proposed council tax increases in York has been agreed.

City of York Council unanimously backed a Conservative amendment to reduce a planned seven per cent rise to six per cent.

It means an average Band D householder will face a rise of £41 a year, £7 less than expected.

But all other proposals put forward by the city's Labour group were passed at last night's budget meeting.

Conservative leader John Galvin said: "I am happy to say I don't put any blame on the council for the raise in council tax.

"What I do say, and what I believe, is that this rise in council tax can be laid firmly at the door of the national government."

Councillor Galvin was referring to the Government's system for allocating grant aid, a system which has been criticised by both Hugh Bayley, York's Labour MP, and council leader Rod Hills.

Coun Galvin said: "I believe that residents of this city should have just a little bit of respite from ever increasing costs." He proposed the cut should be funded from council reserves, and it would be replaced by council assets sold during the year.

Other budget proposals which were passed as the council attempted to save £4.5 million from the budget included a £5,000 cut to grants for the disabled scheme Shopmobility, increased fees for car parking and the city's crematorium, and ground maintenance cuts which include reducing grass cutting beside the city walls.

Councillors voted to scrap two social workers posts, which Coun Hills said had been vacant for some time.

Liberal Democrat leader Steve Galloway put forward an alternative budget, which included cutting £250,000 from the council's public relations budget, a drive to save £1,000 by targeting sick leave on the council and saving £250,000 by restructuring the council's administration arrangements.

He proposals included £250,000 extra spending on combating crime, a £100,000 increase to the leisure budget and a £37,000 increase for street cleaning.

Coun Galloway referred to Coun Hills as Anneka Rice in her TV show Treasure Hunt, suggesting that he had desperately scoured the city searching for ways to find money.

But the alternative budget was rejected.

Coun Hills said: "There is more to this budget than just trying to balance the books.

Updated: 12:20 Friday, February 16, 2001