AN East Lancashire local authority has awarded a contract worth hundreds of thousands of pounds for a consultant to find it savings.

The proposal priced at £350,000 for the external help to close Blackburn with Darwen's projected £9.9million financial black hole by 2025/26 was agreed by its executive board in June.

Now it has appointed consultant Impower to do the job.

But the figures quoted in the report confirming the appointment by strategic director of finance and resources Dean Langton already add up to £367,000.

Conservative group regeneration spokesman Cllr Paul Marrow described the contract as 'strange' adding that he was not surprised the council's spend-to-save scheme was already heading to break its approved budget.

Mr Langton's report said: "The council requires support with the medium-term financial challenge, although the council has a good track record of sound financial management.

"These problems (unsustainable pressure in complex demand-led services) have become existential issues for many authorities. They are too big to be dealt with by departments in isolation.

"A total of £350,000 was approved by the executive board to fund this programme funded through the invest to save reserve.

"Impower are experts in transformation and possess the tools, skills, experience, and capacity for behaviour-led demand management and transformation.

"The council is looking for savings that are not achieved only by budget cuts or efficiency gains, but rather as a direct result of achieving better outcomes.

"The council required external support to help senior officers to challenge current thinking.

"It is clear the council’s budgetary position requires a more fundamental in-depth review of what the council does and how it does it. This applies across the whole range of council activities.

"Payments to the supplier will be based on key deliverable milestones for each phase of the project with stage gates after each phase as whether to proceed."

The proposed payments in the report add up to £367,000 - phase one £42,000, phase two £123,000, phase three £177,000 and phase four £25,000.

Cllr Marrow said: "This is strange when we have our own financial experts.

"It is peculiar to spend this sum to save money.

"I am not surprised this Labour council is set to break its budget for a spend to save scheme almost before it starts."

Blackburn with Darwen Council leader Cllr Phil Riley said: "There are a number of rain checks in this arrangement to ensure we are getting the savings we are hoping for.

"If we find it is not working we can then end the contract."