MORE than £600,000 of York taxpayers’ money was spent on council consultants, even though they walked off the job before it was finished, The Press can reveal.

Outside experts Northgate Kendric Ash were brought in 14 months ago to help City of York Council save £15 million over three years, but the relationship broke down over a contract dispute.

New figures obtained by The Press show NKA was paid £602,459 for its work, despite pulling its 24 staff off the job in December and despite the council previously pledging that the firm would only be paid if its proposed savings were achieved. Only a fraction of the money paid – the £78,600 VAT – can be reclaimed, even though council officials are now running the crucial More For York project themselves.

The firm said its fees were “significantly outweighed” by savings it had identified, but when asked whether it had got value for money on the deal, the council said: “We do not feel it is appropriate to make any further comment at this stage.”

David Scott, leader of the council’s Labour opposition, said: “I am surprised by these figures as it is the first time I have been made aware that such a large amount of money has been spent.

“I will be asking questions about whether this expenditure was justifiable.”

Ian Floyd, the council’s director of resources, said NKA and the council had identified areas for savings and improvement last year and had begun developing more detailed plans.

He said: “Recommendations on future improvements were made in October last year and the council’s own team will now continue – and expand – the work of the More for York programme, with the aim of saving in excess of £15 million over three years.”

Joe Bradley, managing director of citizen services at NKA, said: “Our fees incurred on the More for York programme are significantly outweighed by the savings we have delivered for the council as a whole, and those projected had the programme continued.”

He said NKA had previously helped make major savings in the council’s transport services, even before More For York started.

Council leader Andrew Waller said the council was “very aware” that public money was being used, but said a £1 million efficiency fund had been set up to support the savings drive.

He said: “All payments made to date have been under contracted terms with NKA. We are still in discussions with NKA on a number of issues.

“Next year’s budget contains £4.5 million of savings from the More For York programme, and this demonstrates the good progress the council is making in its corporate approach to efficiency.”


More for less?

THE ambitious More For York programme was launched last June, in an attempt to revolutionise the way the council worked without cutting key services.

It aimed to save £15 million over three years and ease the annual belt-tightening by shaking up their entire structure of the authority.

Council leader Andrew Waller said at the time that it was a response to reduced public spending at a national level, while the council said there would “inevitably” be job cuts.