A BID to slash county councillor allowance payouts by £500,000 a year has been quashed.

Labour members wanted all entitlements cut by 50 per cent, and the savings invested in under-fire services.

But ruling Tories, with Liberal Democrats, voted down the idea and agreed recommendations by an independent panel to freeze allowances at their current levels.

Payments to scrutiny chairmen and a vice-chairman will be stopped, saving £20,573 a year.

Labour group leader Liz Brighouse tabled the 50 per cent cut at a meeting of full council yesterday.

She said: “The council needs to agree a scheme that is appropriate to the economic situation and considers all the staff who are losing jobs.”

County councillors are entitled to a basic allowance of £8,295. In addition, cabinet members can claim an extra £12,442.

The leader of the council is entitled to an allowance of £33,179.

Those opposed to halving allowances said reduced payments would deter people from standing for council, particularly those with families.

Council leader Keith Mitchell said Labour’s proposed 50 per cent cut was aimed at grabbing headlines and added: “The reality is if you do not have a decent (allowance) scheme you will not get people to fill critical roles.”