THREE council staff are to lose their jobs and others will lose one of their traditional perks as the authority strives to tighten its belt.

Hambleton District Council was capped by the Government last year after trying to impose a council tax rise of 17.6 per cent - well above the five per cent limit.

The capping was ordered even though the rise would have equated to only £12, which would still have made it one of the lowest council tax rates in the country.

The controversial move meant the authority had to find major savings in its budget - and the latest area to be hit is the canteen service at the council's Northallerton headquarters, where a £30,000 reduction in costs is being sought.

The three staff will be made redundant with effect from the beginning of next month and free drinks for other employees will become a thing of the past.

Civic centre staff enjoy a free cup of tea or coffee between 9.30am and 10.30m, and then again in the early afternoon, between 2.30pm and 3.30pm.

From next month, they will have to get their hot drinks from a vending machine at a cost of 20p a time.

Additionally, the canteen staff serve up an average of 34 hot meals a day and 34 sandwiches - the latter supplemented by the daily supply of pre-packed sandwiches from Bedale company Country Kitchens.

At the moment, the authority pays £37,600 annually in canteen salaries alone and when equipment costs such as supplies, clothing and other factors are taken into account, the price rises to £38,870.

However, when profits from food sales are taken into account the overall cost to the authority drops to £31,670.

If options to be put before the authority's cabinet at its meeting tomorrow are approved, a vending machines for hot drinks and food will be installed in the canteen instead from April 1 - with a review after six months.