A CONTROVERSIAL £370 million scheme to transfer key council services to the private sector has come under fire from councillors.

Opposition leaders on Stoke-on-Trent City Council have demanded an inquiry into the decision to seek a business partner for the proposed joint venture.

The council's executive and members board approved the selection of a private sector partner at a meeting on July 2. But several senior councillors have since called the decision in for scrutiny.

The meeting was told that the council was initially planning to transfer about 400 property management and IT staff to the joint venture by 2010.

These could be followed by up to 700 workers from its legal, administrative and benefits departments.

Staff would move to new offices in the planned £120 million business district to the south of Hanley.

Councillor Kieron Clarke, portfolio holder for resources, said outsourcing services would enable the city to attract high quality employers and kick-start city centre regeneration.

Julie Gill, director of central services, said it would make the business district more attractive to investors and give staff better job prospects.

But Councillor Peter Kent-Baguley, Potteries Alliance leader, called the decision in over concerns about privatising vital public services.

“I'm ideologically opposed to it,” he said. “I have got grave suspicions. I didn't like the way that the report that was presented contained no details about alternative service projects and how much it would cost us to do in-house.”