Richmondshire Council have condemned plans to remove the children's and maternity services at the Friarage Hospital in Northallerton as being a "done deal from the outset."
They have also been critical of the Primary Care Trust which they say has failed to both to listen and respond to local communities.
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A number of projects across the region have received a grant totalling over £1.5m.
Higher food and petrol prices are expected to send inflation to its highest level in 28 months when official figures are released later.
Police say two men were arrested in a pre-planned operation in connection with the incident