Council bosses in North Yorkshire are facing calls to explain why a new council tax system will cost taxpayers millions of pounds a year more to run than the current system.

North Yorkshire County Council has revealed the cost of administering the unitary authority’s council tax scheme is expected to be £37m, £2.4m more than the current structure run by North Yorkshire’s district and borough councils.

A cross-party group of councillors has proposed unifying council tax bills across the seven districts over the next two financial years as some areas are paying higher rates than others.

Yesterday the Stray Ferret reported on how the Harrogate has the highest council tax in North Yorkshire.

The move would mean Harrogate's average bills for a band D property would fall by £23.47 during each of the two years on a current bill of £1,723.27 whilst other areas might see a rise.

The proposed increases and cuts in council tax charges do not include what increases the new unitary authority, police and fire services and parish councils may levy from April 1.

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As part of the proposals, the executive committee will consider providing up to 100 per cent reductions on council tax bills for households on the lowest incomes.

However, opposition politicians said the rising cost of administering the new council tax system raised a red flag, particularly after as the county council had estimated savings brought about by creating abolishing the district and county councils and establishing a unitary authority should reach £252m over its first five years.

Councillor Andy Brown, the authority’s Green Party group coordinator said:

Leader of the council’s Independent group, Councillor Stuart Parsons added:

Cllr Parsons said it would take many years for the new authority to iron out inequalities between services in the seven boroughs.

He added: