FINANCE chiefs at North Yorkshire County Council say Government funding cuts have left them with a black hole of more than £35 million – much worse than first feared.

Figures which have gone before the council executive show reduced grants from Westminster have left them £12 million worse off than originally expected.

The council says it would have been facing an even bleaker financial picture had additional funding for under-pressure adult social care services not been included in its settlement.

A report by John Moore, the authority’s corporate director for finance and central services, has raised concerns over whether a Government grant which is aimed at allowing council tax bills to be frozen next year will be continued in the future.

The total shortfall has been set at £35.4 million, and Mr Moore’s report states: “This dispels the recent suggestion the Government would ultimately ease the front-loading of cuts, as suggested in the Comprehensive Spending Review.

“The total grant loss in 2011/12 is significantly above both the £19.4 million suggested by the Department for Communities and Local Government and the £23 million previously forecast by the county council following the spending review.”

The report said the council’s dedicated schools grant is expected to be reduced because of falling pupil numbers in the county, although this will not be confirmed until later this month.

It will also have to deal with the cost of free nursery education for all three-years-olds being extended to 15 hours.

Mr Moore said: “In 2010/11, North Yorkshire received a grant of £4.041 million for this and this grant will not continue, effectively creating a pressure of £4 million in the dedicated schools grant.”

The council’s cost-cutting proposals which have already been revealed include closing some old people’s homes and libraries and postponing road repairs, with hundreds of jobs set to be lost.