LEADING Otley town councillors have handed over power after their budget plans to borrow £300,000 for a Civic Centre revamp failed to win support.

Members of the leading Labour group handed over their council leadership on Monday evening after staking confidence in their ability to run the council on their proposed 2002-2003 budget.

But members of opposition groups refused to support the budget - which included plans to take out a £300,000 loan from the Public Works Loan Board.

An alternative budget was adopted by opposition councillors.

Councillor Gerald McGowan (Lab) said the loan was needed to fit disabled facilities required by the new Disability Discrimination Act (DDA), which will come into force in 2004.

"It is our duty to make this building accessible to all, and we must grasp the nettle now, and not in 2003 to 2004," said Coun McGowan.

He said the cash required could not come from the normal annual expenditure. The proposed budget also included a general revamp and redecoration of the Civic Centre.

But Councillor Colin Campbell (Lib Dem) proposed an alternative budget, in which a 'hypothecated' council tax addition will raise some extra money towards disabled facilities at the civic centre.

The alternative budget set a precept of £244,611 - of which £50,000 will go towards DDA spending.

Opposition councillors said repaying the loan would be a 'millstone' around the necks of the Otley community for another 20 years.

Members of the Labour group argued that they had not been given enough time to look at the alternative budget.

Town Clerk Les Cross said that the Town Council would continue to run as normal.