Around £50,000 has been spent renovating Walsall Council’s chamber – despite jobs being axed to save money.

It emerged that the cash has been spent on new microphones and screens in the main meeting room.

A full council meeting heard last night that job cuts and redundancy packages were costing the cash-strapped authority £600,000.

But council chiefs insist it will help save around £2.5million over the next three years.

The controlling Tory group was asked to reveal the cost of the re-organisation of staffing levels.

Leading councillors were also questioned on the projected costs for the next year. Councillor Chris Towe replied that the cost for workers leaving in 2009/10 would be £600,000.

But this would be offset by a saving of £2.5million. The figures were revealed after it emerged last week that a £5.6million overspend was predicted this year.

A pay freeze and cut in working hours are among the measures being considered to help claw back as much cash as possible.

Jobs have been shed, library hours cut and Walsall Illuminations scrapped as part of efforts to save money.

And the £50,000 outlay on new microphones and screens has been dubbed a “waste of money” and “insensitive.”

The Tories defended the spending last night.

Council leader Mike Bird said: “It is deeply embarrassing at a development control committee meeting when microphones don’t work, when talking about millions of pounds of investment.”