York's Liberal Democrats have welcomed a £100 energy support scheme announced in today's budget.
But they warn Fair Funding Review of local government finances could deliver a £240 increase in council tax.
The party has also welcomed extra support concerning business rates for small businesses.
The comments come as Labour Chancellor John Healey delivered his first budget, which follows on from he and Andy Burnham replacing Rachel Reeves and Sir Keir Starmer respectively three months ago.
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Cllr Nigel Ayre, Leader of the York Liberal Democrat Group, said: "We welcome the £100 energy bill support announced in the Budget for households in council tax bands A to D. Any help with household bills is welcome.
"But while these measures will offer some help, the reality for people in York is deeply worrying. The Government's Fair Funding Review threatens to leave our city more than £38 million worse off, putting vital local services under enormous pressure and leaving residents staring down the barrel of a potential £240 council tax increase.
"People in York could see any savings from this Budget wiped out by higher council tax bills, while the services they rely on face further cuts. That is an incredibly concerning prospect for families already struggling with the cost of living.
"We have repeatedly called on the Government to give York its £38 million back and provide the fair funding our city needs. We are deeply disappointed that those calls have not been heeded."
Cllr Ayre continued: "The Liberal Democrats have been putting pressure on the Government to support struggling high streets, and we welcome the move to raise the Business Rates threshold from £12,000 to £18,000. This is a step towards reversing the damage caused by Labour's changes and will provide welcome relief for many small businesses.
"But while our campaigning has helped keep pressure on the Government to act, this cannot be the end of the story. Small businesses and community services are still facing rising costs, and the whole business rates system needs fundamental reform to help our high streets thrive."
The Press has approached other political and business leaders for comment.
We will post them as they come in.
What did you think of the budget? What did you like or dislike? What could or should the Chancellor have announced instead? Does the budget make you more or less likely to vote Labour? Who would you vote for instead and why? Please share your thoughts in the comments below.
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