A council which has imposed above-inflation increases in council tax is set to spend £261,000 - to make savings.

West Sussex County Council says it needs to make an immediate £15 million budget cut and save up to £30 million in the long term.

It is paying consultant firm KPMG to find out where it can slash expenditure. The news comes as West Sussex residents face average band D council tax bills of more than £1,000 for the first time after three years of five per cent rises.

About 300 jobs are being purged from council offices as a starting point for budget reductions, mainly via natural wastage and staff redeployment.

Councillor Steve Waight, cabinet member for finance, said the appointment of KPMG was "essential" and savings could be made from cuts on telephone bills, advertising, IT and temporary staff.

He said: "We are reshaping the county council and need contributions from right across our staff. KPMG will provide us with an independent view and has a proven track record in delivering savings.

"The review is essential as we face the prospect of minimal increases in Government grants. West Sussex received the worst grant of all county councils this year."

At this year's budget announcement council leader Henry Smith said it was "inevitable" services would be cut this year.

Councillor Smith said: "We will be working over the next year to develop a scheme to offer children cheap transport to school. A scheme like that costs money. This is just one area where this review could help unlock finance.

"While the cost of employing KPMG will be £261,000, the improvements they help us make and the impact of the savings for key services and council tax levels will make this excellent value for money."

West Sussex County Council's employment of KPMG is not the first time a major Sussex organisation has given the company thousands of pounds' worth of business. Surrey and Sussex Healthcare NHS Trust paid almost £700,000 to KPMG in three months at the beginning of the year.

The company was employed to draw up a cost-cutting plan as the NHS Trust needed to reduce a £60 million deficit.