Commenting on a Wales Audit Office report on finance at Caerphilly council – which highlights 'unlawful' action when chief officers bought out entitlements on 'essential car user allowance' and 'annual leave allowance' - Shadow Minister for Finance Paul Davies AM, said:

"Mismanagement of council finances doesn't get much worse than this.

"It's more than clear that systemic problems have existed within this council and public money has been gambled away without due care and attention.

"The list of failings stacking up at Caerphilly county borough council is extremely worrying and I urge Carwyn Jones and Welsh Labour to monitor the situation closely and provide guarantees for the future."

Shadow Minister for Local Government, Janet Finch-Saunders AM, said:

"This is yet more damning evidence against a council that has already come in for intense scrutiny.

"The rot must stop now.

"Improvement is absolutely crucial and the council's response must be swift and efficient.

"Carwyn Jones must guarantee this won't happen again – anywhere in Wales – and assure taxpayers that progress will be quickly forthcoming."