The behaviour and culture at Cheshire East under the leadership of Michael Jones is 'one of the worst examples' the investigating auditors had ever come across, the council was told.

The public interest report, from the council's former auditors Grant Thornton, referred to bullying and intimidation under the former Conservative leader, who stepped down in 2015, and looked at details surrounding the controversial awarding of contracts to Nantwich-based Core Fit, a company which was owned by Mr Jones' physiotherapist.

The report had been delayed because of police investigations into the council – which ended with no charges – but Jon Roberts, of Grant Thornton, told a specially convened meeting of the council it had been necessary to produce the report all these years later because it was in the public interest.

"The behaviour and culture we describe in our report is one of the worst examples we've come across throughout our knowledge and experience of local government," said Mr Roberts.

Mr Jones, who did not attend the meeting, told the BBC last month the auditor's report 'is not accepted by me as being fair or accurate, not least as it is based on disputed issues and events'.

The Conservatives came under fire during the meeting for failing to stop the behaviour of their former leader – and it was pointed out several times that in 2015, when Labour had put forward a motion of no confidence in Mr Jones, it had been voted down by the Tories.

Cllr Andrew Gregory (Ind) was applauded by the public when he asked the auditors: "You say, while some members within the former leader's political party were highly concerned by his actions, others provided him with their political support… Why isn't it in the public interest that these people are named?"

Mr Roberts said that would have extended the investigation process and the cost.

Other councillors asked the auditors why they had not followed up on concerns which were raised at audit and governance meetings in 2015, mainly by then opposition leader, Cllr Sam Corcoran.

Mr Roberts said the lengthy police investigation stopped them being able to do the work more timely.

When asked about the cost of the report and if the money could be recouped from those involved, Cheshire East's monitoring officer, David Brown, said the council would have to foot the bill and the costs weren't known yet.

Cllr Nick Mannion (Lab) told the meeting: "I speak as someone who has served as a council officer for nearly 30 years and I never read such disgraceful behaviour."

He added: "Cheshire East Council is in the midst of having to prepare a balanced budget in the light of the double whammy of the cost of living crisis pushing up demands for services and double-digit inflation…

"I do wonder what proposed cuts to services and facilities may have been avoided if we did not have to pay for the direct cost of this report, the sum of which is yet to be determined, and the far greater indirect cost that the council has had to meet over recent years – the significant reputational damage to CEC amongst voters, local businesses, prospective employees, partners and even central government."

Cllr Amanda Stott (Ind) was loudly applauded when she praised officers, particularly the former head of internal audit, as he had 'contacted Grant Thornton and demonstrated high standards of professional conduct'.

"Lives and careers have been ruined, and in my mind, these people deserve the council's gratitude for the role they played in bringing this matter to light," she said.

Cllr Rob Vernon (Lab) said: "Cabinet members were too silent, were too neutral and, in being so, sided with the behaviour they witnessed, whether they participated in it actively or not."

Conservative group leader Janet Clowes said it is wrong to treat Conservatives within the council as a homogeneous group.

"The report states that 'it took time for the former leader's behaviour to be addressed by his own party' and it is important to understand why," said Cllr Clowes.

"Some senior officers and elected members worked extremely hard from the outset to address the excesses of his behaviour, often at great personal and professional cost. Two of those have not been contacted as part of this exercise as requested, and we believe this to be a significant omission."

She said the standards regime was inadequate to deal with the behaviours demonstrated by the former leader.

"Conservative members had to look outside local government and utilise the political party code of conduct which was ultimately successful on December 8, 2015," she said.

Cllr Jos Saunders (Con) said she was not bullied by Mr Jones 'but I totally supported Cllr Clowes in her actions to remove him and there's clearly no doubt that he made many people's lives utterly miserable'.

She said it was 'plain wrong' to assume all Conservative members 'acted as a homogeneous group and were all complicit in Mr Jones actions'.

Council leader Sam Corcoran (Lab) told the meeting an LGA report in 2020 had showed the culture at CEC had now been transformed.

He said he hoped the Conservatives would put their own house in order after the reported actions which had resulted in the 'shame and cost of this public interest report'.

"For me the message of this report is the importance of speaking out when you know something is seriously wrong," said Cllr Corcoran.

"We've heard today that Conservatives took action once it became apparent, they turned up after the Labour group and the press had made it clear that their position was untenable."

He added: "Some did speak out and I would credit former councillor Howard Murray, who did speak out and paid the price. He did not receive the support he should have done from his group."

Deputy leader Craig Browne (Ind) said: "This report could and should be used as a case study for local government in terms of what can go wrong but also how it can be put right again."

Only 51 of Cheshire East's 79 councillors were at the meeting.

They voted unanimously to support the recommendations – which included the council should discuss with its current external auditors whether there are any matters arising from this report that should be addressed by the current auditor's statutory external audit.