CONSERVATIVE controlled North Yorkshire County Council is set to fly in the face of government appeals to freeze council taxes with a 1.99 per cent rise.

The authority is looking to increase its portion of the council tax bill for an average Band D property by £21.46 to about £1,099 a year. Members of the Executive committee agreed the rise in the face of an offer by the government of a one per cent increase if they froze council tax.

This would mean further cuts on top of £94 million in savings being made following government budget cuts and a further £74m planned up to 2020.

Members of the Executive committee agreed the increase, which will now have to be approved by the full council.

Cllr Gareth Dadd said it amounted to 41 pence a week for Band D taxpayers and would avoid the authority having to find a further £2.4m in savings.

Cllr Don Mackenzie added: "I am instinctively a tax cutter, but council tax is one of the few areas that provide a degree of certainty in meeting the cost of future services.”

Cllr Chris Metcalfe said there had been a 34 per cent reduction in budget from the government since 2011. He added: "We live in very volatile times when you look at the demand for services.

"It is surprising how many people are saying I would much prefer to see an increase in my council tax and less cuts."

The authority needs a budget of £363m next year with about £241m coming from council tax.

Officers say even with the tax increase they will need to take more than £1.6m from reserves while making savings of about £22m.

They have revealed North Yorkshire faces extra costs of tens of millions compared to urban areas, spending £20m alone per year on transporting children from home to school.

Leader of the Council, Cllr John Weighell said: “We have said for a long time that places like North Yorkshire suffer significant financial penalties because of their very rural nature, and that those penalties are not adequately recognised in support from central government.

“This analysis provides evidence of the cost differential, and to be honest it is a staggering amount.

"At a time when we are making tough decisions about issues such as the council tax, this analysis demonstrates why, for North Yorkshire, this process is such a difficult and complex task.”