URGENT and necessary repairs in flood-hit areas could be sidelined due to the Government's decision to cap council tax increases in Hambleton.

The warning came from Anne McIntosh, Vale of York MP, as the Government abolished plans to restrict proposed increases by eight local authorities.

Hambleton District Council is being forced to slash £196,000 from its budget - because Government branded its proposed £12 a year tax rise 'excessive'. And it has to spend at least £50,000 on re-billing all householders - a bill that equates to a saving of 11p a week.

The Parliamentary order was made in the House of Commons yesterday, bringing the capping proposals into force.

Miss McIntosh said the move "unfairly punished" authorities careful about spending to ensure council tax charges are as low as possible.

She said: "Residents of Hambleton pay the tenth lowest council tax in England, yet the Government has taken control of its budgetary spending. With the recent flooding in North Yorkshire, I am extremely concerned capping will leave Hambleton District Council without the funding it requires to carry out urgent and necessary repairs."

Among Hambleton's flood-affected areas were Sutton-under-Whitestonecliffe, Thirlby and Thirsk.

Councillors who will re-set the budget on August 9 have warned that services may be cut.

Council leader Arthur Barker said the council had already spent £100,000 on clearing water courses and removing debris.

He said: "One of the things likely to be shelved is a scheme for travel concessions for young people. It is something people have told us they wanted. We had also hoped to invest in improvements to recycling.

"It defies common sense to cap a council that increased its bills by £12 a year to give an average council tax of £80. We have to reset the budget at almost £200,000 less - many of the schemes we had planned will be shelved, reduced - or even scrapped."

Hambleton had set a council tax increase of 17.6 per cent - £12 a year extra on a Band D property, but the Government told councils it will not accept more than a five per cent rise.

North York Moors National Park officials have claimed new detailed surveys reveal the true extent of damage from the June 19 floods, when 70mm of rain fell in an hour in the area above Hawnby, causing the River Rye to burst its banks and flood 128 homes.

As revealed in the Evening Press yesterday, the repair bill for bridges and homes devastated by the floods is expected to reach almost £5million.

Updated: 10:46 Thursday, July 21, 2005