York City Council may escape government ‘capping', following last-ditch talks with the ODPM. The authority was one of two which appealed against the threat of capping, after failing to keep its council tax rise under 5%.

Both York and ~Medway Council~ announced increases of 5.5% in their council tax bills this year, and are facing the threat of spending restrictions. Now a York MP has intervened with a bid for damage limitation. Labour MP, Hugh Bayley, met for talks with local government minister, Phil Woolas, on 25 April, to see if a compromise could be reached. The minister told him he was duty bound to either cap the council or officially nominate it – a legal arrangement which would restrict the council's spending next year, but allow it to avoid having to rebill. But Mr Bayley said progress was made in the meeting and he believed the council would be able to persuade the minister to ‘nominate' it and avoid the cost of rebilling.