Massive savings of £5.5 million could be sliced off City of York Council's spending following an efficiency review, analysis has found.

Initial estimates suggest work already completed could save the cash over the next five years - without affecting the quality of services.

Already, savings of £1.6 million have been confirmed over the next five years - but it could be a lot more.

The news comes as the council faces a shortfall of more than £3 million in its budget.

The estimate is based on initial analysis of the pilot Best Value programme, which has completed reviews of activities including street lighting, transport, commercial waste and school meals.

It aimed to improve the efficiency of each department.

The project cost the council £372,000, with £200,000 being taken from existing budgets.

Council leader Rod Hills said today: "I know there have been some reservations about the cost of individual reviews, but this clearly demonstrates that Best Value is an exciting initiative which can bring significant rewards for the people of this city."

He said the review was working to bring the taxpayer high-quality services, at a cost they are willing to pay.

"We promise to deliver high-quality services that people want," Coun Hills said.

"That is what we are here for and that is what we will do.

"We are spending taxpayers' money and have a duty and responsibility to make sure it is properly spent. We intend to use Best Value to help us deliver.

"This is not about cuts in budgets, but about delivering quality as efficiently as possible."

A large part of any savings would be used to fill the shortfall between budget and actual spending.

A council spokesman said: "The total amount of savings has not yet been accrued and, until we know the definite amount, we can't decide what we will do with it."

The review's findings follow an address by financial consultants Expense Reduction Analysts, who told Liberal Democrats yesterday savings could probably be made at the council through a review of spending on overheads.

Liberal Democrat Mick Bradley said: "If this is true we would not be against it, but we have yet to see these figures and we would want to see proof before we can give it our support."

adam.nichols@ycp.co.uk