Deputy General Secretary Dai Hudd was responding to leaked news reports that Communities and Local Government Secretary Eric Pickles plans to transfer the Commission's in-house audit practice to the private sector.

On behalf of 1,350 members working for the independent watchdog, Hudd said: “From the leaks, this appears to be another ill-thought out and ineptly handled decision which is beginning to become a hallmark of the coalition government.

“Many of the skills of the Audit Commission workforce command significantly higher value in the private sector, and far from driving down costs there is the potential for costs to increase substantially.

“Questions must also be raised about impartiality if those who are being audited will be selecting their own auditors as well determining their financial reward.”