A CABINET councillor has demanded answers about what safeguards are in place to stop another financial blunder after a maths error turned a £26.5m saving to the taxpayer into a £2.7m bill.

The Observer revealed last week the full extent of the gaffe by town hall beancounters in adding up the cost of outsourcing back office services in a ‘flagship’ deal with the private sector.

The error came to light after councillor Patricia O’Connor quizzed a finance chief at a scrutiny meeting last week. And after reading our story, Cllr James Walsh, commissioner for health and wellbeing, said: “I don’t remember signing that off last year.” He added: “What safeguards are in place? I’m not sure I have the confidence in that system.” The privatisation of services to arvato was supposed to save taxpayers £26.5m over 10 years. But the blunder means the council have to fork out an extra £2.7m every year for the contract than it originally though.

Joseph Holmes, assistant director of finance and audit, said: “The council will ensure appropriate checks are made and information coming to senior officers is robust and transparent so members are able to scrutinise it effectively and they know what they are signing off.” Cllr James Swindlehurst, commissioner for neighbourhoods and renewal, said: “Will the contract overall still deliver savings?” Mr Holmes added: “It has ancillary benefits and we will be looking to identify as many savings as possible to make sure there is no cost to the taxpayer.”