COUNCIL chiefs in York have had to slash their budgets this year more than any previous administration in the city, civic leaders were told.

The comment came from City of York Council leader Steve Galloway yesterday, as the authority's ruling executive approved a 5.49 per cent council tax increase.

The tax rise and the budget for next year will now be sent to a full council meeting for final approval next month.

Coun Galloway said that putting proposals together for the next financial year had been "extremely difficult".

Earlier, Heather McKenzie, of the York branch of the public service union Unison, told the executive she was "dismayed" jobs would be lost as a result of the £5 million in efficiency cuts the authority was having to make to balance the books. She said: "Jobs are being lost as a way of making ends meet. We are opposed to any compulsory redundancies."

Coun Galloway said that less than one per cent of the council's workforce were affected by the job cuts, but added: "That doesn't ameliorate the concern they see.

"I am sure managers will continue to try and find suitable alternative posts at the council (for those affected by possible redundancy."

Coun Galloway said the budget process had looked not only at the finances for the next 12 months, but also the position for the next two to three years.

"It is very important to find savings which are achievable for the foreseeable future," he said. "York will continue to have the lowest council tax level outside of the south-east of England. Although we have an enviable record in the city for achieving efficiency savings - around £4.7 million to date - central Government demanded more.

"For the council, with the lowest expenditure per head of population of any in the country, this represented a major challenge."

The council tax increase, if agreed by full council, would mean the average Band D household in York paying £1,173.71, a £54 increase.

Meanwhile, Ryedale residents will have to wait a few more days before finding out exactly how much council tax they must pay.

After a gruelling four-hour meeting, delayed by last-minute political wrangling, district councillors decided to adjourn making a final decision on the budget until Monday.

Residents in East Yorkshire will face an average £43.81 increase as council chiefs set a council tax increase of 4.9 per cent.

In Selby, council tax is to rise by 2.7 per cent, leaving a Band D household with a bill of £1,273.67, while the increase is three per cent in Hambleton.

Updated: 08:55 Saturday, February 18, 2006