HOUSEHOLDERS in Ryedale will have to pay an extra 9pc on their district council tax bills in the coming financial year.

The net budget approved by the council was £6,537,500, making the average Band D rate £145.20, said Coun Alan Farnaby, the chairman of the policy and resources committee.

The county council's rate will be £732.85, while that of the police authority goes up by 41.54pc to £88.59 on a Band D property.

In addition, Ryedale council tax payers face an additional sum of parish and town council precepts.

"We have acted responsibly," said Coun Farnaby, who added that a recent survey revealed that 78pc of residents rated Ryedale District Council's performance highly.

But Coun Keith Knaggs said: "We wouldn't have put in this increase if there were a free market in council services. What we get is not more services, but more government."

Coun Pamela Anderson said the £3,000 a year allowance to councillors should be reduced to £2,300 because of the extra £22,000 which had been allocated in the budget for payments.

According to Coun Farnaby, the sum took into account the payments to the extra seven councillors who will be elected next year.

Coun Allin Jenkins said much of the tax increase was beyond the control of the council, and he cited pensions as the biggest problem.

"Over a period of six years, the council will have had to find £500,000 to meet pension costs," he added.

Coun Chris Parkin suggested a working group should be set up to look at final pension payment schemes.

Coun Gary Hobbs added: "We have a huge problem because we have senior officers who have retired at the peak of their experience."

It was agreed that the policy committee should discuss the pensions issue at a future meeting.

Meanwhile, in Ryedale's adjoining authority, Hambleton, tax payers have been levied the second lowest tax in the country at just £56 for a Band D property.

Director of financial services Phil Morton said: "It is down to prudent financial management."

He added that the council had investments of some £30m following the sale of its council houses and it was the authority's policy to use the interest - this year amounting to £1.4m - to the benefit of tax payers.

The council had built a leisure centre at Bedale because of its financial position and it had now agreed a ten-year financial strategy which would see the interest on the investment used to benefit the council tax.

The council leader, Coun June Imeson, said: "Since council tax began in 1993, Hambleton has levied a massive £663 less than the Government assessment - creating a saving to residents of £21m. We are proud of our record and we intend to keep it."

The residents in Hambleton district, which includes Easingwold and Thirsk, will be paying more than £40 below the Government target for a Band D property, of £97.

Updated: 09:41 Thursday, March 14, 2002