Lambeth spending £16,000 on party

A London council is spending nearly £16,000 of taxpayers' money on a lavish Christmas party for its staff.

As numerous companies cancel their annual party due to the economic slowdown, the housing benefit department at Lambeth Council is being treated to a glamorous festive party to end the year.

All 400 employees are booked to attend the Hilton Metropole in order to celebrate their achievements - despite the fact that a Government audit found the councils department was the slowest benefit processor in England and Wales.

The party plans have caused a row among councillors at Lambeth council who feel the amount of money spent on the party is an unjustified waste.

Brian Palmer, Liberal Democrat deputy leader of the council, said: "This isn't a council that's got a great record. But it seems to like to splash out on high jaunts."

According to a recent survey, Christmas parties have been cancelled by more than one in 10 firms this year due to the economic slowdown.

At least 12 per cent of companies are not planning an office party next month, according to the poll of financial directors.

At the same time, those that are having parties are cutting down on costs. Numerous companies are saving money by shunning outside venues and instead transforming their offices into the party location, according to events organiser Theme Traders.