One of Britain's highest paid council chief executives has demanded her authority spend £122,000 on outside consultants to tell her how to save money.
Andrea Hill, who earns £220,000 a year, has warned workers at Suffolk County Council that the authority needs reorganisation and some of them will be sacked.
Taxpayers in Suffolk will pay three consultancy agencies up to £1,500 a day to tell the council where it can save.
Mrs Hill persuaded the leaders of the Conservative council to break their own rules to get the money without putting the contract out to tender.
According to the minutes of the cabinet meeting on March 30, councillors raised concerns that "the report had a lack of detail and that there was no evidence whether the companies being considered could deliver the required change".
However, the proposal was voted through and Mrs Hill given approval to agree the contracts herself with consultants Scintillate Business Ltd, Fields of Learning, and DNA.
The first two firms appear to be based in Yorkshire and Bedfordshire respectively, but the council minutes do not make clear where DNA is located nor which of several firms with similar names it is.
Scintillate will be paid around £50,000 for 50 days' work but a 10 per cent "contingency budget" - to be used at the programme manager's discretion to cover expenses - could see the cost go to £55,000.
Fields of Learning will get up to £42,000 for two months' work, but less than three weeks will actually be spent in Suffolk - the rest will be office-based "planning".
DNA will be paid around £30,000 for one month's work: which equates to £1,500 a day.
The changes could also see health services, the police and local councils share offices to save money.
In memos circulated to staff, Mrs Hill said the consultants are needed because the council was becoming "unfit for purpose" because council officers were not responding to the needs of residents.
She said: "We have an overly complex and sophisticated organisation that will not be fit for purpose in the new era.
"In particular, inspection, monitoring, performance management, scrutiny, risk and audit have begun to dominate the local government culture to such an extent that our council is now more focused on the regulator than the customer.
"Suffolk's residents expect us to provide the very best value for their council tax."
Mrs Hill called for "a hard-nosed approach" to "harness individual creativity and energy" to reshape the council.
Jeremy Pembroke, Suffolk County Council's leader, said the political leadership of the council was fully behind Mrs Hill's efforts to reform the organisation.
He said: "We have to spend £6.5 million a year on scrutiny, audit, and pleasing the regulators - with that money we could fill in 600,000 potholes."
However, a spokesman for the TaxPayers' Alliance campaign group said: "Spending money on consultants to save money suggests that the chief executive is not very serious about saving taxpayers' cash.
"You would hope that someone paid a lot more than the Prime Minister would have the experience and knowledge to find cost savings.
"There are many businessmen around the country who have had to find similar savings in recent years and managed it without hiring expensive consultants."
In 2008, Mrs Hill was forced to defend her salary and said she was worth it because so few other people were prepared to do the job.
Gordon Brown is paid a salary of £197,689 as Prime Minister.
The highest paid council chief executive is thought to be Joanna Killian, who earns £247,000 a year as head of Essex County Council.
http://www.taxpayersalliance.com/media/2010/05/daily-telegraph-220kayear...




LGA media release: 1 April 2010
Responding to the report on local authority pay by The Taxpayers' Alliance, a spokesman for the Local Government Association, which represents more than 350 councils in England and Wales, said:
"Councils need talented people in top management positions but they have to balance this with the need, in a tight financial situation, for all salaries to be demonstrably reasonable.
“In these tough economic times, it is only right that everyone gets to see how much is paid to the people who help deliver their local services.
"These figures represent 0.0008 per cent of the total workforce in local government. Councils are responsible for ensuring that more than £120billion of taxpayers’ money is spent wisely and provides more than 700 services local people want and need.
“Many councils have bigger budgets than FTSE100 companies and to get the brightest people to deliver the best services at the lowest cost for local people they need to pay a competitive wage. When senior salaries in the public sector are compared to senior salaries in the private sector, the taxpayer gets very good value for money.
"Councils' commitment to driving up standards is going from strength to strength and performance continues to improve albeit with strained resources. Councils are delivering an ever better deal for taxpayers and local authorities already have the best track record on efficiency savings in the public sector.”
http://www.lga.gov.uk/lga/core/page.do?pageId=10373396