A POLICE authority responsible for the largest council tax rise in the country has been heavily criticised for having £25m in its bank accounts.

A report by the Audit Commission found there were significant weaknesses in the financial management and accounting arrangements of the North Yorkshire Police Authority.

They found that paperwork was not up to standard and that, at the end of September last year, the authority had £25m in its reserves.

In 2003, the authority raised its share of the council tax by 76 per cent, saying the money was needed to pay for improvements in front-line policing. It was the largest rise in the country.

Harrogate and Knaresborough MP Phil Willis said the level of reserves shows that the large council tax rises were unnecessary.

"I feel personally that I have been misled and I think the people of North Yorkshire have been misled," he said.

"We have had three major precept increases. I supported every one of those rises on the grounds that the force needed these resources."

Jim Fender, the authority's vice-chairman, said it had been necessary to build up large reserves partly to deal with the pension demands of a large number of officers who were entitled to retire in the next two or three years.

He said reserves had also built up because capital projects, such as new computers, cars and building improvements had not been able to go ahead in the intended year. Reserves were also needed to pay for major incidents.

He added: "We have taken the auditors' comments very seriously and the authority, and the chief constable, are currently working very hard to implement all the arrangements which they recommend."