CASH-STRAPPED City of York Council has managed to find £50,000 to employ consultants - and should also find money to scrap new parking charges, Labour group leader Dave Merrett claimed today.

Coun Merrett said in a statement to the Evening Press that the ruling Liberal Democrat executive had recently set aside £50,000 to pay for consultants to review the council's Department of Environment and Development Services.

"This money was not budgeted for, and is new spending," he said. "It only goes to show they can still find extra money in the council coffers to further their priorities."

The councillor was arguing in support of a Labour motion to tomorrow's full council meeting, which calls for an urgent and comprehensive review of parking arrangements in the city before irreparable damage is caused.

He said that while it was difficult to alter a budget once it had been set, it was not impossible. "If the Liberal Democrats are willing, they could find a way out."

Lib Dem council leader Steve Galloway said today that as part of a drive for efficiency, independent experts were being employed to look at the council's structure, including planning and transport, following the departure of Director of Development and Environment Services, Roy Templeman.

"Around £50,000 is being invested in this initiative, but this will be more than recovered from the savings that we expect to identify," he said.

"The 'one off' cost will initially be funded from the council's reserves and reduced management costs connected with the director's resignation."

He added that Labour could have "called in" the decision for review, but chose not to do so.

In response to other claims by Coun Merrett, reported on page seven, that Labour had put forward costed alternatives to new parking charges in the spring, which had been considered "practical and deliverable" by the council's director of resources but turned down by the Lib Dems, Coun Galloway claimed that Labour had "muddled up" its figures again.

He said Labour had proposed taking money from balances which would have left the authority with inadequate reserves to deal with emergencies, such as the floods of 2000.

He said the new parking charges were projected to raise over £1 million which would help to sustain good quality public services.

Updated: 10:38 Wednesday, July 28, 2004