Video: How the spending axe could spill the lifeblood of tourism for Dales economy

One weekend each July, Leyburn rolls back the decades.

The 1940s festival is a chance to hang out the bunting and as the market square becomes the setting for a street party, it's also a nostalgic glimpse of what life used to be like.

However, when the fancy dress is put away for another year, the stark reality of life in a 21st-century Dales community is all too clear. To the tourists who come for a wander round the quaint cobbles and afternoon tea in one of half a dozen cafs, it's tempting to believe that in Leyburn, with its bustling high street and breathtaking views across Wensleydale, little ever changes.

However, four years ago the town lost its cinema, the model village went the same way and, despite much campaigning, plans for a new arts centre never saw the light of day. More recently, Leyburn's library is among those threatened with possible closure and, with Richmondshire District Council under pressure to slash budgets, the worse could be yet to come.

When the Government's Comprehensive Spending Review left the authority needing to claw back 1.5m of savings, all departments had to go back to the drawing board. Various services are now being shared with Hambleton District Council, but the figures still don't add up and when the axe falls again, some fear it could deliver a fatal blow to the region's tourism.

Consultation on various cost-cutting proposals is now underway, but with Tourist Information Centres likely to close and increased car parking charges seemingly inevitable, the fear is the austerity blueprint could drive visitors elsewhere.

"We all realise that savings have to be made, all we are asking is that they are made fairly," says Andy Brook, who for the last five years has run the countrywear outfitters Royals in Leyburn. "The council insist that a final decision won't be made until next month, but I came away from the last meeting with the impression that it's already a done deal.

"It's crazy, there are signs all around this area directing people to the TIC in Leyburn if they want to buy tickets for the Forbidden Corner attraction. It's a captive market. Get rid of it and you not only damage the footfall in the town itself, but to all the other surrounding attractions.

"The Government recently said that tourism will play a fundamental part in the overall growth of the national economy, but no-one seems to have told those in charge up here. In the Richmondshire district 60 per cent of the overall economy is driven by tourism, it's something which needs to be protected, not plundered."

With the savings needed to be made over the next four years, the bulk of them by 2012, the council, like many others, has found itself facing a brick wall. In the list of 12 proposals put out for public consultation, it says stopping the annual funding for TICs would save 132,000. However, the plans, together with separate reduction in funding towards a tourism partnership from 38,000 to 28,000 and talk of increasing car parking charges, have been labelled short-sighted.

"At the moment out of 80 shops in Leyburn, there is one business for sale and three vacant premises," adds Mr Brook, who is now planning to stand as a candidate in the May district council elections. "That might not sound like a lot, but in recent years a lot of empty properties have been taken over by estate agents or office-led businesses.

"If we lose our retail offer then no-one is going to want to stop and linger. Speaking personally, half my trade comes from tourists and I can't afford to lose it. We are suffering just like the high street, except when some major chain of shops closes people sit up and take notice. Sadly, no-one wants to listen to the rural voice."

Leyburn is by no means unique. The Yorkshire Dales National Park Authority is also reviewing its budgets, which could see TICs in Reeth, Hawes and Aysgarth scaled back or shut. Details will be thrashed out at full meeting of Richmondshire District Council next month when a future strategy document will be also be drawn up.

"One argument in favour of stopping the funding to the TICs is that most people now go online to book accommodation and tickets to attractions," says Kate Empsall, who rents out cottages in the Dales around Askrigg. "That may be the case, but there are a significant number of elderly people who don't have access to the internet and many others who come to this area on spec, who need to be catered for.

"Last year wasn't particularly buoyant for many people running tourism businesses. While there has been a lot of talk about 'staycations', the reality is that when people fear losing their jobs they are less likely to book holidays, even ones in this country.

"It's fine to say that closing something like a TIC would save X amount of money, but you have to balance that against the income which they generate."

One of the solutions to the cuts could be greater community involvement. In line with David Cameron's vision of the "Big Society" the possibility of residents and business owners taking over the running of tourist information facilities is being explored.

It's not an entirely new idea, Mrs Empsall was recently part of a successful campaign to re-open a post office in the village of Bainbridge. Securing space in the Sycamore Hall retirement complex, the facility is now open two mornings a week, alongside a self-service library.

"It's been a real success, particularly the library which is open seven days a week from 9am to 9pm," she says. "However, I do worry about responsibility for these vital services being completely shifted onto the public. If they are to work they need support from the local authorities."

The full details of the plans will emerge soon enough and those charged with crossing the Is and dotting the Ts know there is no easy solution.

"We were braced for a 28 per cent budget reduction over the next four years," says Fleur Butler, leader of Richmondshire District Council.

"In fact it was 33 per cent, front-loaded on the first two years. We had already reduced our senior management by 40 per cent, had begun sharing services with Hambleton Council and we thought we were home and dry.

"Unfortunately the decision to front-load the cuts means that we have to find even more money.

"We are required by law to produce a balanced budget, but it's not a case of shutting the TICs and walking away. Far from it. We are already asking the businesses who directly benefit from the service to be part of the solution.

"The fact is that TICs as they stand are an old-fashioned approach to providing information. Many people do go online and it may be far better for a tourist information service to be provided as part of a library and by the people who work in the business.

"We are not a flabby council, and anyone who thinks we can get through the next few years without anything changing is in denial. Of course the cuts are hideous, but do we put our head in the sand and pretend its not happening, or do we face up to the situation and ask what we can do to make it better? The latter is surely a much better option for everyone."

The economics of tourism

Tourism in Yorkshire is worth an estimated 6.5bn annually.

According to latest figures, the county's industry, employs almost a quarter of a million people.

There are 209 million visits to Yorkshire each year.

The industry accounts for seven per cent of Yorkshire's regional economy.

Yorkshire has been ranked as the third most visited holiday destination in England for domestic visitors.

According to the tourism body Welcome to Yorkshire, which recently secured 10m funding up until April 2012, visits to the county have increased by 22 per cent since the organisation was launched two years ago.