City having to save £10m in the next year

York Council is predicting it will have to make savings of more than 10m in 2011/12, with similar cutbacks in the subsequent three years.

While the precise impact of the reduction in funding from Westminster will not become apparent until early next month when the Government announces its final grant settlement, the council's executive will be briefed on Tuesday next week about the likely implications.

Cash is expected to be made available from the Government to give local authorities an incentive to freeze council tax in 2011/12.

However, local government funding is due to be cut by an average of 7.1 per cent per annum over the next four years –with the largest impact falling in 2011/12.

Capital funding will reduce by 45 per cent over the next four years.