SENIOR officers at East Riding of Yorkshire Council have handed themselves massive pay rises - despite backing service cuts and council tax hikes for residents.

The main beneficiary is chief executive Darryl Stephenson, whose salary has soared from £104,000 to £140,000 - or a 34.5 per cent rise. The underlying inflation rate stands at 2.6 per cent.

The increases were advocated in a secret council report, produced by accountants PriceWaterhouseCoopers and obtained by the Evening Press.

Last week, the council's annual budget saw service cuts and council tax increased by 5.8 per cent.

The authority has blamed inadequate Government spending grants for tax rises.

The report compares the salaries of senior officers with those in other authorities, mainly in London.

As a result, directors' salaries have increased from £79,743 to between £90,000 and £95,000 - a minimum rise of at least 11 per cent.

The inflation-busting increases, which have put an extra £111,000 on the council wage bill, were revealed as a new national report said public sector workers had received "substantial" pay increases as part of a drive to boost recruitment.

Many workers in public services have been paid bigger rises than other employees over the past year, and the trend is likely to continue, said pay analysts Incomes Data Services (IDS).

Today, a council spokesman said the new wages put the salaries of senior officers on a par with those in other authorities.

The spokesman said: "The council is simply paying the market rate for a handful of posts at the very top of the organisation.

"Since 1996, inflation-only increases have been awarded, and it is clear that salaries for directors have fallen behind those in comparable authorities.

"We are in the top quartile for performance, but not salaries.

"The pay rises will have no effect on front-line services, which will only be put on a secure financial footing if and when the Government changes the grant distribution formula."

But these claims were rejected by Pocklington town councillor George McManus, who has campaigned for a reprieve for Woldhaven residential home - which council chiefs want to close to save £100,000 a year.

He said: "At this time of year, these rises are completely insensitive when considering the council's budget cuts.

"As far as I am concerned, the background to these increases means the decision totally beggars belief."

City of York and North Yorkshire County Councils said their salary decisions would be made later in the year.

Updated: 11:41 Monday, February 18, 2002