Taxpayers may have to foot the bill for council's legal wrangles

York Council yesterday confirmed that work with Northgate Kendric Ash (NKA) on a flagship cost-cutting project had come to an end, after talks aimed at resolving the row proved fruitless.

The consultants had been drafted in to work on the More for York scheme, which aims to shave 15m off the council's expenditure over the next three years, but NKA withdrew its staff in December.

The firm claimed the council had stated it did not want the More for York project to follow the same principles as previous consultancy work.

Opposition Labour councillors expressed concerns that taxpayers would be left with a costly legal bill if NKA pursued litigation.

The Labour group's corporate services spokeswoman, Coun Julie Gunnell, said: "This development creates a very uncertain future for the council in financial terms.

"What could be devastating is if the council gets hit with a legal bill that costs the taxpayer yet more money. I sincerely hope that doesn't happen."

But Northgate Public Services' managing director of citizen services, Joe Bradley, stressed the firm is continuing to work with York Council on other projects to deliver "much needed efficiencies".

York Council confirmed that NKA's involvement in the More for York project is now at an end. A spokeswoman added: "However, this will not affect any separate existing projects between the council and NKA."