Children's services may not be spared

North Yorkshire County Council's director of finance and central Services, John Moore, said: "These announcements represent significant reductions in both capital and revenue grants from the Government to the county council.

"It is too early to say precisely what impact they will have.

"However, the headline figures represent a cut of 3.66m in revenue grants, and 7.14 m in capital grants. Virtually all of the cuts in capital grants relate to highways and transportation, and represent a reduction of more than 50 per cent in the amount the Government contributes to those schemes.

"We have yet to be notified of what, if any, action the Government is considering in relation to the Bedale and Leeming Bar by-pass project."

The chief executive York Council, Kersten England, said: "Today's announcement from the Government of grant reductions results in a loss to the council of 1.18m, 900,000 of which relates to funding of children's services.

"In addition, there is also a 1.61m reduction in capital grant, relating mainly to transport schemes. The announcement also indicates reductions in other specific grants such as housing and planning , and the impact of the loss of these specific grants on the council is currently being assessed.

"The council will look into how it can best deal with the loss of funding while still maintaining priority services to the citizens of York."

Some impact will also be felt in Scarborough, though Ryedale and Harrogate are unaffected.

Scarborough Council's head of finance and asset management, Nick Edwards, said: "The direct impact on Scarborough Borough Council is a reduction in grant of 18,000, which has been previously committed. In addition, the government has reduced or stopped other grant funding to the council."

Coun David Jeffels added: "Scarborough has saved many millions of pounds year on year and we are absolutely down to the bone."