by political editor Paul Francis

A £200,000 windfall payment to Kent County Council’s former chief executive actually cost the taxpayer twice as much, it has emerged.

Peter Gilroy was given the six-figure sum after agreeing to extend his contract for a year.

It was designed to ensure that his pension was not affected by his decision to stay on.

Now KCC’s auditors have disclosed that agreeing to pay Mr Gilroy actually cost £408,000, taking into account relevant National Insurance and income tax contributions.

The revelation comes in a formal report by the Audit Commission that makes a number of criticisms of the authority over a series of six-figure severance payouts to top officers.

Auditors concluded none of the payouts they investigated was unlawful, including Mr Gilroy’s payout which he received on the day he left this May.

But they are critical of how the county council negotiated them, saying it failed to properly set out why they were considered value for money.

In the case of Mr Gilroy, who was paid £214,000 last year, the report says councillors were given too little information to allow them to make an informed decision about the proposed payout.

It criticises the council over its failure to assess whether the agreement with the chief executive was value for money, saying no alternatives were explored.

It also says the finance director was not told.

The KM Group was leaked details of the payout in February and the disclosure prompted a public outcry.

Auditors identified what they described as a "number of recurring weaknesses" in the council’s arrangements for severance payments.

They said the council lacked an effective system of performance management, did not document clearly why payouts were value for money and reports to councillors "did not always provide a full, balanced view of the circumstances of individual cases."

In a statement, KCC said the recommendation to give Mr Gilroy an additional £200,000 payment was based on solid financial advice and evidence.

"We believe the decision to make this payment was the right one, in order to secure the continued services of a chief executive who had delivered exceptional results for Kent County Council and for Kent residents.

"We accept the Audit Commission’s recommendation and any report produced now would be more detailed.

"However, all the questions raised by the committee members at the time were answered in full and all information about the issue was made available to them."

In relation to the auditors’ comments on other payouts, KCC said: "We note the Audit Commission conclude the severance payments they have looked at were lawful, reasonable and in the best interests of the council.

"We have accepted the recommendations and expect officers to ensure they are followed in any and all future cases."