County's council tax increase is lowest amount since the 1990s

The council has drawn up a budget blueprint for the next financial year which is aimed at easing the strain on bank balances for householders throughout the county.

North Yorkshire County Council's leader John Weighell confirmed that the proposed 2.94 per cent increase on the annual council tax bill was aimed at providing further financial help to more than 258,000 households.

However, the 2010/11 increase would have been even lower had it not been for the extensive damage caused to the county's thousands of miles of highways in the coldest winter which has hit the nation since 1981.

Proposals had initially been drawn up for a 2.5 per cent increase, although this has had to be increased by nearly half a per cent.

Coun Weighell said: "It has been our priority throughout the budget consultation process to balance the increasing demands being made for our services with the need to keep the council tax as low as possible.

"As more and more people find themselves victims of the economic downturn, they turn to the county council for help and support.

"It is essential that we are able to offer that vital support, and we cannot do so without making a small increase in the tax we levy. It had been our hope that the increase would be even lower.

"But the damage caused to the county's highways by the most extreme weather conditions for 30 years will cost several million pounds to repair.

"We have taken what is prudent from our reserves to help to pay for this work, but there is still a shortfall which must be covered through tax."

Senior members on the authority's executive are due to meet on Tuesday to discuss the financial plans, before the proposals go before the full council on February 17.

The proposed 2.94 per cent rise equates to a 1,057.48 bill for an average band D property – an increase of 30.18, or 58p a week.

North Yorkshire County Council has the lion's share of the overall bill, with the remainder made up of levies from borough and district authorities, the police and fire service as well as a small slice for parish councils.

However, like other highways authorities across the nation, the council is facing a massive bill for repairs to the 5,600-mile road network which spans England's largest county after freezing temperatures caused potholes to open up.

The Yorkshire Post revealed last week that the county council was establishing a 1m fund to finance emergency repairs to roads damaged in recent weeks.

A council spokesman admitted that local authorities throughout the country are faced with tough financial decisions amid predictions that funding from central government will dry up in the wake of the recession.

However, he stressed that the proposed council tax increase for the new financial year from the start of April will be adequate to finance a wealth of key services provided by North Yorkshire County Council.

The authority is responsible for the education of 81,700 pupils aged between four and 19, and provides transport to school for about 19,000 students every day.

The council also oversees social care for 10,900 elderly people to enable them to continue to live in their own homes, and the demand for these services is expected to rise dramatically.

The county council is also responsible for disposing 360,000 tonnes of waste every year, as well as recycling and composting 138,000 tonnes of rubbish. It also provides help and support to 27,000 businesses in partnership with other agencies.