AN INQUIRY is underway to discover how Wirral Council apparently overspent more than £100,000 on fees to a firm of consultants.

The ruling Labour group last year authorised £50,000 for consultancy firm V4 Services to look at the way the borough's leisure centres were run and come up with proposals to make them more "efficient."

A further £95,000 was later agreed by cabinet for V4 to advise on setting up a "local authority trading company" to take over management of certain aspects of social services, according to council leader Phil Davies.

But unknown to councillors, this sum has escalated to £260,000.

Councillor Davies said the investigation will reveal whether or not officers have exceeded their authoirty.

But until it is concluded, he is "not jumping to conclusions."

Tory group leader Cllr Jeff Green had blasted hiring consultants as a "waste of money" even before the overspend was revealed.

Today he said the tax-paying public would be "disgusted."

In a statement, the council said: "V4 have been contracted to provide consultancy support to the council since May 2013.

"They have identified significant potential savings over the period they have worked with us.

"This has included work with leisure and day services.

"In August 2014 it was brought to the attention of the strategic director for transformation and resources that the amount paid to V4 for their services appear to have exceeded the contract rules approved by members, spend to date is £260,000.

"At his instruction audit are already examining this matter, which will be reported to the audit and risk management committee."

Councillor Green said: "People will wonder what on earth is going on at Wallasey Town Hall.

"This is what happens when proper scrutiny and review procedures are abandoned, as they have been by this Labour administration.

"Someone has been asleep at the wheel.

"It is spending without any controls- and the public will rightly be disgusted that hard-earned money is being taken from their bank accounts and wasted in this way."

Councillor Davies told the Globe: "To say we have removed proper scrutiny is a red herring.

"As with any large organisation, there are procedures in place for officers to authorise expenditure. The investigation is to check if those standing orders have been adhered to.

"Until it is completed, I am not jumping to conclusions."

He said V4 had helped save £500,000 so far and, acting upon its advice, a further £1.5m will be realised in 2015.

Liberal Democrat councillor Stuart Kelly, who sits on the audit committee, said: "This is a very serious matter and not just a issue for officers as suggested by the council leader.

"When money is tight, proper control is essential.

"This cash could have been put to good use protecting front line services rather than lining the pockets of consultants.

"This shoddy financial control isn’t new to Wirral Council and each time money is wasted and controls by passed we hear the ‘lessons will be learnt’ mantra.

"But when will they actually get a grip centrally rather than let services like school crossing patrols and libraries pay for their failures?"

In a statement, V4 Services said it has been working with the town hall on two important and separate projects.

A spokeswoman said: "We carried out an initial strategic review of leisure services during the summer of 2013. 

"Following this the council went out to tender in August 2013, using the' national consultancy framework for external support to transform leisure services', to which we submitted a tender response and were successfully appointed.

"In addition, we were appointed by the council via the same framework to put together a strategic business plan for the establishment of a local authority company to provide adult social day care services."

V4 Service's work has included consultation with councillors, staff, parents and carers.

The representative added: "Our work with the council delivered £500,000 of savings in 2013-14 and is on target to deliver a further £1.5m of savings in 2014-15, with no loss of community services and indeed an enhancement, with two new fitness centres within West Kirby and Guinea Gap Leisure Centres.

"Each piece of work we have carried out is supported by a proposal document and has been signed off by the council.

"The council chose to work with us because of their commitment to protect frontline services and that is our prime focus."