A LONG-AWAITED report on Leyburn Town Council's acquisition of Thornborough Hall urges the authority to come up with a plan for the future as a matter of urgency - or face the prospect of spiralling debt.

The town council bought its new headquarters from Richmondshire District Council for £145,000 in 2001, when the latter decided the former mansion house was surplus to its requirements.

The asking price was low because the building required an estimated £170,000 in refurbishment work - and the town council had to find money to cover the costs.

In his report, the District Auditor confirms the financial arrangements were conducted correctly. Much of the cash came from the sale of council assets and from grants from various agencies.

But he confirms that income from renting offices inside the building failed to match costs last year, and he points out the town council would have to work hard to double the occupancy rate if it is to avoid debts.

The town council added £7,000 to Leyburn council's tax precept last year to help balance the books - the equivalent of an £8.80 increase in the council tax bill for a band D property.

It has also been urged to give a clearer indication of its future policy.

"It is important that, as a matter of urgency, Leyburn Town Council prepares a robust medium-term projection of the probable costs and revenues associated with the running of the hall," says the report.

"Based on these projections, the council should make a formal, public resolution stating clearly what level of losses it is willing to sustain and over what period, taking into account the impact on the precept."

No one from the town council was prepared to comment on the contents of the report last night.