CALLS have been made for the leader of City of York Council to resign after a damning report into the handling of a £400,000 payout to the former chief executive.

Labour has called for Liberal Democrat council leader Keith Aspden to step down - claiming an independent report into the payout reveals "a major scandal and a significant misuse of public funds".

But the Lib Dems have hit back - saying they "make no apology" for changes to senior staffing and accusing Labour of carrying out a "personalised witch hunt during an international pandemic".

The Press has requested a comment from council leader Keith Aspden. Instead, the Lib Dems have responded with comments from his colleagues Cllr Nigel Ayre and Cllr Darryl Smalley.

READ MORE: Damning report on City of York Council chief executive's payout

A report by independent auditors published yesterday says councillors deciding to award the £400,000 payout to former chief executive Mary Weastell did not have all the information needed to make an informed decision.

And that safeguards to stop conflicts of interest were not in place.

Labour group leader Cllr Danny Myers said: “Lib Dem council leader Keith Aspden is totally discredited by the independent findings into his handling of his party’s pay-out and gagging clause to the former chief executive and must now resign.

"This is a major scandal and a significant misuse of public funds.

“The findings make clear he should have declared an interest when chairing the private meeting that decided on the pay-out, as he was named personally on the employment tribunal brought by the former chief executive.

“Such a flagrant waste of taxpayers’ money cannot ever be acceptable and has resulted in a lack of public confidence and trust in how the council is being run. His position is now completely untenable, and there is no other option than for him to resign."

But Lib Dem councillor Darryl Smalley hit back at the Labour group, accusing them of "chasing headlines".

He said: “Labour Group’s inaccurate and deliberate misrepresentation of the Audit Completion Report is indicative of the personalised witch hunt York Labour continue to conduct during an international pandemic.

"This HR process has now been twice dismissed by standards, following independent assessments.

"Instead of focusing on the immediate challenges facing our city, their interest is purely in their short term political gain.

“We make no apology for saving local taxpayers £200,000 per year from senior management. We believe that maintaining and investing in key services at this time of national crisis is what the council must focus on.

"If Labour wish to continue to play the man not the ball it is entirely up to them but we will focus on delivering for the city be that the York Central, Castle Gateway or the housing delivery programme - all projects Labour have equally sought to scupper for their own political gain.

“We see no need to take lectures from the Labour group, who during their period of control were infamous for lavishing taxpayers money on vanity projects and bodged bridge closures. It is time for the Labour group to begin working on policies which would deliver for local residents rather than spending their time chasing headlines. The council administration will continue to focus on delivering for the residents of York.”

The independent auditors' report does not mention any councillors by name in relation to the handling of the former chief executive's departure.

Last year The Press revealed former council chief executive Ms Weastell was awarded a £400,000 payout at a secret meeting and had taken early retirement, after going off on long-term sick leave shortly after the local council elections in May 2019.

Ms Weastell had also lodged an employment tribunal complaint against the council and council leader Keith Aspden, which was withdrawn after the payout was agreed.

Cllr Aspden did not declare a prejudicial interest when he chaired the secret meeting to agree the payout, despite being named on the employment tribunal papers.