CONSERVATIVE controlled North Yorkshire County Council has approved its revenue budget for 2015 to 2016.

The authority agreed a budget of £363 million with about £241 million coming from council tax at its quarterly meeting at Northallerton’s County Hall today (Wednesday, February 18).

The authority is to increase council tax bills by 1.99 per cent, but officers said even with the tax increase they will need to take more than £1.6 million from reserves while making savings of about £22m.

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

Leader of the council, Cllr John Weighell said: “By the end of 2014 to 2015 the council will have delivered £91.1 million of savings.

“It is estimated, however, that a further £75.4 million will be required from 2015 to 2016 and 2019 to 2020.”

He added: “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.

“Because austerity measures must continue the county council has set in train its 2020 North Yorkshire programme which has required radically new ways of thinking and innovative policy-making around the delivery of services.

"The county council has worked hard through this programme to make sure that frontline services are prioritised by reducing back office, management and administrative posts.”