An independent panel, which could include members of the public, will be created to deal with the "pay" of Bradford councillors.

The move comes as the bill for councillors' allowances is expected to top more than £1 million at the year end in March.

The 90 members of Britain's fourth biggest metropolitan authority currently receive set allowances instead of the old system of being recompensed for the time they spend at meetings.

The existing scheme was adopted two years ago following the recommendations of a panel of professional people.

Now the Council will comply with new Government rules which say that all local authorities must appoint a panel to advise on payments.

The regulations mean the Council must consider the advice before it makes or amends any allowance scheme.

Councillors will not be allowed to sit on the panel and there will be no political appointments. Members will be appointed for three years, subject to annual confirmation by the Executive Committee.

Councillor Jeanette Sunderland, leader of the Liberal Democrat group, welcomed the move today. But she said: "I would like members of the public to be involved and not just the great and the good.

"Clearly councillors have to be rewarded for the time and energy they spend. They are often under-valued."

Labour group leader Councillor Ian Greenwood said: "I think it is entirely reasonable and sensible to set up a panel. I think the public must have confidence when you are talking about remuneration."

But he said councillors did their work with a sense of public service.

Council leader Councillor Margaret Eaton said it was important for the Council to comply with Government directives.

l All Bradford councillors receive basic allowances of £7,700.

The Council leader also receives a further allowance of £17,950. Executive committee members and leaders of political groups get their basic allowances topped up by £10,250.

Chairmen of sub-committees have a special allowance of £5,150.