A COUNCIL tax rise of 17.6 per cent for people living in the Hambleton area was agreed yesterday by cabinet members.

It means that people living in a Band D property will now pay £80 rather than £68 per year for district council services.

The Government has recommended that authorities should not raise tax levels by more than five per cent, but senior officers do not believe the 17.6 per cent figure will lead to a cap being imposed.

Head of corporate finance, David Simpson said: "Whilst in percentage terms the rise may be high, we are coming from such a low base that it is not a large amount in money.

"For the last two years we have set the lowest council tax in the country, including all other elements such as the county council and the fire authority. I think it would be a bit harsh for the Government to cap an authority with that sort of record."

A final decision will be made by the full council on Tuesday, February 22. North Yorkshire Police Authority have also agreed next year's budget for the county's police force. It will see a council tax rise of 2.62 per cent, or a £4.50 per year increase for a Band D property.

The figure comes after three years of large rises in the force's council tax bill, including a 76 per cent rise in 2003/04 - the largest in the country at the time.

Police authority chairwoman Jane Kenyon said: "The modest budget increase will give the Chief Constable enough resources to continue the modernisation of North Yorkshire Police whilst maintaining performance at the level that she and her staff have been delivering.

"It is absolutely crucial that we maintain the momentum that North Yorkshire's communities have made possible through their previous significant investment."