Deficit: City may be left to foot bill alone

Although it was initially agreed to split the South Yorkshire Trading Standards Unit deficit on a pro-rata basis across the county's four district councils, Sheffield finding 5.9m and the other three councils splitting the remaining 7.6m between them, the issue remains the subject of discussion.

Barnsley Council received a letter from colleagues in Sheffield in March this year requesting its 2.3m share of the bill.

But it has emerged the council's solicitor, Andrew Frosdick, has been in discussions with Rotherham Council to explore the legal position.

Both authorities have refused requests under the Freedom of Information rules, on the grounds that the release of such information could weaken their negotiating positions on the issue.

Doncaster's Mayor, Peter Davies, has also declined to comment while discussions between the four authorities continue.

Mr Frosdick has confirmed there has been "consideration with my equivalent colleague in Rotherham of legal issues relevant to the issue of the scope for the recovery of outstanding amounts".

But he added: "It would be prejudicial to the interests of the authority to disclose into the public domain information which relates to legal issues relevant to the scope for the recovery of outstanding amounts."

Sheffield Council took fees each year for its work in providing management and audit services to the trading standards unit and it has since tightened up its audit services.

By the time of Mr Buckley's death, in late 2005, it had emerged that the accounts had been absorbed into council-wide documents by the time they were scrutinised by external auditors.

That practice was entirely legal, but would have made it extremely difficult to spot discrepancies.