A council threatened with legal action for non-payment of bills has now run into more trouble over the late payment of salaries and allowances.

The Liberal Democrat-run Vale of White Horse District Council has also admitted its electricity supplier has threatened to cut the power to its Abingdon base.

The council, which also has offices in Wantage and employs more than 300 staff, admitted teething problems withs its new computer systems had led to a string of incidents which almost led to County Court legal action.

The Conservatives' finance spokesman Matthew Barber said: "This is nothing short of a farce and seriously affects the financial viability of the council."

This month, staff found salaries had not been paid on time, while the 51 Vale councillors' allowances were also late. Most payments were made within 24 hours.

A year ago, the council ended its in-house management of financial services to go private with Capita - a company that provides a range of services to companies and councils nationwide. The council forecast savings of more than £100,000 a year over seven years.

The council's chief finance officer Steve Bishop said: "Unfortunately, the upgrade to our financial management system in April has led to some problems, which has resulted in the late payment of some invoices.

"These problems have not affected the council's ability to deliver services or impacted on our residents in any way but we do appreciate the problems it has caused for some of our suppliers. We are working to resolve any outstanding problems."

Mr Bishop said the council would foot the bill for any bank charges incurred by staff who had not been paid on time.