LEADING councillors have launched a bid to keep their chief executive - by giving him an inflation-busting pay rise of around 10 per cent.

The Blackburn with Darwen councillors met last week to work out a package that would help to keep Phil Watson for the next three years.

Mr Watson confirmed his salary was between £115,000 and £126,000 before the panel met on Friday. He now stands to earn an extra £12,000 a year after accepting the new deal.

Two years ago it was revealed that deputy chief executive Steve Weaver quit to become the new chief executive of Blackpool Council because it could offer more money than Blackburn.

After Mr Weaver's departure the council launched a pay review in a bid to stop directors leaving.

The town hall meeting was attended by five leading councillors, who gave their unanimous support to the increase.

Two independent auditors, including David Campbell from the North West Employers' Association, put forward recommendations to the panel.

The councillors included leader Sir Bill Taylor, Conservative councillor Michael Law-Riding and Lib-Dem leader Coun Paul Browne. Coun Taylor said it was important to keep the chief executive who led the council to be acknowledged as 'excellent' by the Audit Commission.

He added: "With directors of service and chief executives there is a real difficulty around recruitment and retention.

"A retention package was developed which is aimed at keeping our chief executive. Not having one would be akin to running a school without a headteacher.

"We have got to pay a decent level of salary, commensurate with what other people in the private sector receive. There is a real supply problem around top-quality, proven directors and chief executives."

Inflation stands at 2.9 per cent and the average income in Blackburn is £19,250.

A spokesman for Unison, the public sector union, said: "There is a problem within the whole of local government in terms of recruitment.

"A lot of the problems surround the levels of pay that are being offered and it is an issue. On the one hand councils want to be able to attract the best people, but there are concerns over the widening gap between those at the bottom and those at the top."

Coun Browne added: "He has been an excellent chief executive and is well liked at the council and in other parts of the country.

"What was done was only in line with the correct procedures of local government. We lost a well-regarded member of staff once because we couldn't offer a competitive salary and we didn't want that to happen again."

And Conservative leader Colin Rigby also backed the move. "Phil Watson has done a good job and I would not want to see him go. We are all agreed on that. While it seems like a large chunk of money I would rather pay him that than see him go."

A spokesman for the Department of the Deputy Prime Minister said councils were facing a shortage of chiefs executives and directors but authorities had been warned about handing out large pay rises.

He added: "Councils have to make their packages attractive so they can get the right calibre of people, but huge pay rises are not sensible, particularly when you are dealing with public money."