Wolverhampton Council has been accused of wasting up to £1m on publicity for its proposed arm’s-length management organisation

The accusation, which is rejected by the council, was made by local MP Ken Purchase at a Defend Council Housing conference on Friday last week.

“I understand, although somehow or other it’s not on the public record, that the cost of that publicity was around £1m,” Purchase said.

He told delegates the money had gone on glossy brochures, press adverts, door-to-door visits for which workers were paid £10 an hour, independent tenant advisers, and the use of Electoral Reform Services – the services arm of the Electoral Reform Society – to supervise the ballot, which closes on 8 November.

“Really, it shouldn’t cost more than £50,000,” Purchase said.

But deputy leader of Wolverhampton council Peter Bilson said: “His figure must be total set-up costs for establishing an ALMO. Our costs are similar to those of same-size authorities.”

Bilson said the council had achieved a 70% rate of awareness among tenants of its plans for an ALMO.

Wolverhampton’s ALMO is in round four of the ODPM’s programme and £42m has been earmarked for its first two years of operation.

It hopes to use £288m to bring its 27,000 homes up to the decent homes standard.