Council accused of hiding details of payout to firm after legal battle

COSTS TO LOCAL AUTHORITY WILL TOP £1 MILLION

- By HANNAH RICHARDSON

LEICESTER City Council is set to pay out at least £1 million in a legal dispute amid accusations it is hiding the details from the public.

The authority published a decision stating it intends to settle litigation brought against it by a company named only as X Ltd, with which it has been engaged in the litigation process "for some time".

The decision report has been issued because the sum expected to be paid comes in at more than £1 million and therefore triggers the council's key decision threshold, requiring a report to be published.

However, the document states the nature of the dispute and the terms of the settlement, including the precise amount to be handed over, are "exempt" from disclosure. The decision to pay up was also made exempt from being called in - a process used by councillors to scrutinise and challenge decisions made by leaders - on "urgency" grounds.

Officers believe there are "overwhelming public interest" reasons for withholding the information and that settling the dispute is in the taxpayer's interest, the report says.