CITY council leader Steve Galloway is calling on the Local Government Minister to visit York and witness the authority's achievements before deciding on how much cash it will receive next year.

In a letter to Phil Woolas, at the Office of the Deputy Prime Minister, Coun Galloway warns of a 6.5 per cent council tax hike and the "heaviest batch of cuts to services that we will have witnessed in the city" under current proposals.

He is appealing for the final settlement to recognise the efforts of low-spending authorities and the greater difficulty they have in making further savings.

His letter points out that, of all 352 billing authorities, York has the tenth lowest council tax and the seventh lowest grant funding per head due to "very prudent financial planning and implementation".

However, the Government has revised the formula by which it calculates the grant handed to councils.

Under current proposals, the city will receive an extra £1.15 million.

"This is £1.25 million less than if the Government had applied the new formula in one go," writes Coun Galloway.

He asked for low-spending authorities to receive a larger proportion of their entitlement in year one.

"If at least £850,000 of the central government retained grant can be released to our authority, then we will be able to restrict the council tax increase to below five per cent."

Pressures on the public purse were caused by circumstances outside the council's control, he said.

These include York's ageing population placing greater demands on council services such as home help, and respite care; and increasing costs of utilities such as gas and electricity.

York's growing population, rising by about 1,000 a year, was also highlighted along with the effects of landfill tax, the costs of minimising waste and increased recycling not being adequately recognised.

New regulations covering health and safety and disabled access, and a nationally-agreed pay award for staff of 2.95 per cent were also listed.

Coun Galloway said an extra £10 million was needed to cope with these extra pressures.

The council has come up with possible savings of more than £6 million, with the Government's three per cent grant increase contributing £1.15 million towards meeting the deficit.

Updated: 10:17 Thursday, January 19, 2006