Richard Tice has said he is locked in a “ferocious battle” with local government finance officers over attempts to reduce pension contributions at councils controlled by Reform.

The deputy leader of Reform accused senior council officials of trying to intimidate the party by refusing to approve annual budgets if employer pension payments are cut beyond recommended levels.

He said finance directors, known as Section 151 officers, had warned they would not sign off council budgets if Reform pursued deeper reductions.

The Boston and Skegness MP said: “Finance or Section 151 officers were trying to bully us, saying ‘if you reduce the employer contributions by more than we recommend, we’re not going to sign off the annual budgets’.”

The dispute centres on Reform’s aim to demonstrate its ability to cut spending at local authorities facing severe financial pressure.

Mr Tice said the party was encountering particular resistance in Nottinghamshire and Kent, where Reform controls the councils.

The Local Government Pension Scheme provides retirement benefits for more than six million people and is one of the largest public sector pension schemes in the country.

It currently manages assets worth more than £400billion across 86 administering authorities in England and Wales.

The most recent formal valuation, published in March 2022, showed the scheme held a surplus of £22billion.

Updated figures are expected this spring, with industry expectations that the surplus will have grown further.

Employer contributions to the scheme currently average around 21 per cent of salary.

Robbie McInroy, head of local government at actuarial consultancy Hymans Robertson, has said average contribution rates are expected to fall to between 15 and 16 per cent over the next three years.

Mr Tice has argued that such reductions do not go far enough.

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He described the actuaries involved as “financially negligent” and accused them of “applying overprudence on overprudence”.

Council finance officers have expressed concern that cutting employer contributions too sharply could store up problems for the future.

They have warned that overly aggressive reductions could lead to higher contribution demands later if investment returns disappoint or liabilities rise.

Reform has made cutting waste at local authorities a central part of its political message.

However, local authorities have said the party has carried out no centralised audit work at the councils it took control of nearly nine months ago.

Mr Tice acknowledged that expectations may have been raised too high when the party launched its efficiency drive last summer.

He said Reform “might have got a bit excited about the comms”, creating the impression it could quickly overhaul council finances with minimal preparation.

Reform UK’s Arron Banks told Chopper’s Political Podcast that Doge would uncover “the biggest national scandal in decades”.

Draft budgets published by Reform-led councils show planned council tax increases despite the party’s emphasis on reducing costs.

Proposed rises range from 3.8 per cent to the maximum permitted five per cent.

Worcestershire has indicated it may seek approval from ministers to increase council tax beyond this limit because of its financial position.

The above-inflation rises have prompted criticism from opponents.

Some have accused Reform of betraying voters who backed the party on the basis of pre-election pledges to rein in council tax.

Nottinghamshire county council said its draft budget had been approved by its Section 151 officer.

The council said the budget included a reduction in employer pension contributions.

Kent county council declined to respond directly to Mr Tice’s remarks.

A spokesperson said Section 151 officers have a “legal duty to provide impartial, professional advice . . . and to ensure that our budget is lawful, balanced and financially sustainable”.

Reform is currently leading national opinion polls.

The party has said it views its record in local government as a test of what it could deliver in central government.

Mr Tice said Reform-controlled councils would deliver lower average council tax rises than those run by Labour or the Conservatives.

“We will use that as part of the campaigning material for elections,” he said, referring to the local elections scheduled for May.