A HALF-MILLION pound windfall could lead to a freeze on council tax rises in Ryedale next year.

Ryedale District Council has won an appeal against the rateable value of its headquarters, Ryedale House, at Malton.

The result means the council is entitled to a rebate of £500,000 and annual savings of £36,000.

The news has sparked calls from district leaders to reduce the council tax, following a series of above-inflation rises in recent years.

This year councillors sanctioned a huge nine per cent rise.

Councillors say a decision over how the money will be spent will ultimately be up to council members.

They have already indicated their intention to have a council tax rise of no more than four per cent.

Malton Town councillor Chris Harding has called on members to use all the cash to make a reduction.

"This is a lot of money and I would like to see them put the money to good use," he said.

"When we have inflation running at around one per cent it seems ridiculous that the council is proposing a minimum of a four per cent rise."

Currently council tax on a Band D property in Malton stands at £998 - a percentage of which goes to the district council.

Ryedale's finance officer Trevor Teasdale said the money could be used for a range of options, including putting it towards council tax bills.

"It will be up to the members of the council what they do with the money," he said.

Alan Farnaby, chairman of the council's policy and resources committee, said: "Ryedale District Council has received this unexpected windfall, and although it is very early days to discuss how it will be used, I would want to ensure that it is used wisely.

Updated: 11:33 Saturday, July 27, 2002