Unlawful senior officer redundancy has already cost York around £500,000, say Liberal Democrats

York’s Liberal Democrats say the unlawful redundancy of former Corporate Director Neil Ferris represents one of the most serious leadership failures in the Council’s history and are calling for the resignation of the Leader of the Council.

An Employment Tribunal has ruled that City of York Council acted unlawfully in its treatment and dismissal of Mr Ferris. Liberal Democrats say the ruling confirms what many had feared for some time, that a deeply flawed and politicised senior management restructure was pushed through without regard for the law, proper process or the cost to taxpayers.

Liberal Democrats estimate that the direct financial cost of the Neil Ferris case is now estimated to be around half a million pounds, including legal fees spent fighting the case and additional pension liabilities arising from the unlawful dismissal. Liberal Democrats warn this figure does not include wider knock-on costs, management time or reputational damage to the Council.

Cllr Paula Widdowson, Deputy Leader of the Liberal Democrat Group on City of York Council, said:

“I am deeply disappointed by how Labour have treated Neil Ferris. The Employment Tribunal has been clear that the Council acted unlawfully in this case.

“That decision has already cost York taxpayers around half a million pounds in legal fees and pension costs alone. This was entirely avoidable, and that money should have been going into public services and not wasted defending an unlawful redundancy.

“Residents now deserve honesty. Labour must come clean about the full financial consequences of this case, including the wider exposure the Council now faces as a result of their actions.

“At a time when residents are being told there is no money for libraries, roads, pavements or basic services, it is simply unacceptable for Labour’s leadership to remain silent about an unlawful decision that has already cost the city hundreds of thousands of pounds.”

“Allegations of bullying and a toxic culture at the top will come as no surprise to many across the city. This was a leadership failure, plain and simple. Ultimate responsibility lies with the Leader of the Council, and it is time she took responsibility and resigned. After all, the fish rots from the head down.”