NORTH Yorkshire County Council has issued a warning that increased council tax bills could be necessary.

At the moment the council spends £362 million on its services, and, in council tax terms, is listed as one of the lowest spending authorities in the country.

However, to maintain its current services in 1999/2000, members have said an extra £20 million will need to be found.

The problems arose after the Government changed the standard spending assessment, which meant a cut in North Yorkshire's share by £3.7 million.

The council is considering a council tax rise of 7.5 per cent for 1999/2000, which would mean people in an average Band D property would pay £577 for county council services compared to the current £537.

But there are concerns that such a rise will still not provide enough money to meet the demands of a growing number of vulnerable people, extra pupils in schools, and almost 6,000 miles of road to maintain.

Coun Shelagh Marshall, chairman of the social services committee, said: 'This budget settlement will not only have an immediate effect on services, but it will also have a knock-on effect on future years.

'Even if the proposed 7.5 per cent rise in the council tax goes through this is not enough to prevent having a massive impact on the level of services provided to vulnerable people.

'We believe that deep cuts in existing service levels are inevitable, and that will hit care for the elderly, disabled and infirm people, special care for children and other vulnerable members of our society.'

Coun Roy Wilson, leader of the Labour group, and Geoff Wall, chief financial officer for social services, met Local Government Minister Hilary Armstrong on Tuesday to point out that unless the Government restored the cash, social services would face a crisis.

Parishes throughout Craven have been informed of the problems through a special edition of Parish Council News, and have been urged to respond to a questionnaire asking whether they believed the general public would be prepared to pay extra to try to maintain services at their current level.

Council tax bills are made up of payments to the county council, Craven District Council, the Police Authority, and any parish councils in the area.

This week Craven District Council's policy and resources committee recommended its levy should increase by 4.8 per cent.

Committee chairman Coun Carl Lis said: 'I am delighted that the council tax rise of 4.8 per cent is less than the seven per cent level we originally anticipated. We are pleased at the grant settlement we have received from central Government.

'We have now got the opportunity to plan for the medium term and operate in a business-like manner.

'The council has once again sought to maximise efficiency and review its management structures, saving money to protect its front line services.'

The committee also approved a three year strategy in line with the Government's spending limits to minimise the need over to reduce expenditure on services to the community.

Consultations with parishes and the business communities are planned for February 10, and the final council tax bill will be set by full council on February 23.

Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.