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The country's second biggest local authority -– which last year forked out over £6.6m on consultants – is to carry out an in-depth review of how it provides services in a bid to achieve major efficiencies and savings.

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Business and management consultants are being paid £50,000 to help with the review and they will receive an extra £100,000 – if they can find savings of £6m on top of any efficiencies the council itself identifies.

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But Coun Pauleen Grahame, who chairs the central and corporate scrutiny board – a watchdog body – says the council should be able to make savings without resorting to outside help.

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She said: "We shouldn't have to pay people to come in and do this for us."

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Coun Richard Brett, the council's deputy leader, argued that consultants could bring knowledge of how other authorities and organisations worked, knowledge the council could use to help it save money.

He said: "I fully support the involvement of consultants in this process."

The scrutiny board is currently carrying out an inquiry into the council's use of consultants. Board members want to make sure the use of consultants is cost effective.

A report to the board said members also want to learn "whether the use of consultants reflects a perceived skills gap within the council, or whether there is a necessary focus on core business which requires ad-hoc engagement of consultants."

Figures presented to the board showed that in 2008-09, the council spent £6.63m on consultants. Business and management consultants accounted for just over £1.8m of the total, environmental £1.15m, safety £990,000, marketing £649,000; heating £480,000, computer £338,000, telecommunications £318,000 and public relations £141,000.

In the current financial year between April and September the council spent just over £2.56m on consultants.

In the next phase of its inquiry, the board will look at a number of
case studies to help it assess how consultants were appointed and whether or not best value for money was obtained.

Coun Alison Lowe (Lab, Armley) said: "I am not against the use of consultants if there's a measurable benefit to the council."