A LOCAL authority facing massive cuts is considering handing its award-winning chief executive a six-figure sum to step down after a falling out with councillors.

It is understood Hambleton District Council, which has to find £1.65m savings this financial year, is considering terminating the contract of chief executive Peter Simpson – which could leave him in line for a £375,000 golden goodbye.

Mr Simpson, who earns £125,000 a year, was sent home on paid “gardening leave” last week.

Councillors are believed to be examining proposals that mean, in return for walking away, he could be offerered a six-figure settlement. The cost has been estimated as at least £375,000.

According to well-placed sources, Mr Simpson was placed on paid leave after his relationship with Hambleton leader Neville Huxtable and deputy leader Ron Kirk broke down. It is understood their relationship has been strained for a number of months.

Key issues included a recent senior management review led by Mr Simpson, which members at Hambleton felt had gone too far.

It is understood the management structure was also criticised in a recent peer review – a confidential report by visiting council chiefs.

A third issue is believed to be criticism levelled at Mr Simpson by several senior officers regarding his management style.

A Hambleton council spokeswoman said: “We are unable to go into more detail at the current time because of employment contractual arrangements.”

When contacted by the media, Mr Simpson said he had been advised to remain silent for the time being.

The decision was apparently taken without the knowledge of senior councillors at Richmondshire council, which shares Mr Simpson as chief executive, although the officer is employed by Hambleton.

It is understood senior Richmondshire members, unhappy they were not consulted, have advised colleagues at Hambleton their authority would not contribute towards any pay-off.

The two authorities embarked on a shared services arrangement three years ago – a process led by Mr Simpson. Coun John Blackie pledged it would continue.

He said plans to cover the eventuality of the joint chief executive being unavailable would be implemented.

Deputy chief deputy chief executive Tony Clark will be in charge of Richmondshire Council until the end of May.

Options for the future management of the council would be discussed, said Coun Blackie, adding that Mr Simpson’s talent and competency had never been in doubt in Richmondshire.