FORMER director of resources Ian Thompson thinks the conundrum of Swindon Council's missing £2.5 million is nothing more than a little simple confusion.

The council's budget strategy task group part of the new Star Chamber that scrutinises every service area of the council claimed it made the surprise discovery.

But Mr Thompson, who has just started work as a management consultant at a London borough council, thinks someone has come to the wrong conclusion.

He said back in the 1980s many local authorities set up bank accounts as limited companies to avoid government controls on their capital expenditure. They contained money from the sale of council houses under the Right to Buy scheme and only totalled a few thousand pounds.

Mr Thompson thinks the budget strategy task group has, in good faith, looked at the amount of capital receipts currently in the council's kitty, the likely receipts for next year and an estimate of the amount of money raised through the sale of council's houses and arrived at £2.5 million.

But he vehemently denies there ever being a missing account.

The real answer to how the confusion arose will not be known until the council's acting head of housing, Bernie Brannan, returns to work.

Mr Thompson said: "The truth is there's no hidden account or money that's gone undetected someone has oversimplified the situation.

"I think David Renard (Con, Haydon Wick) and his team were told something in simple terms and have not understood all the implications. The council's external auditors were very concerned."

Mr Thompson, who was made redundant earlier this year and became the first victim of new chief executive Simon Birch's management restructuring at the council, spoke out after Coun Renard claimed the budget strategy task group, of which he is the chairman, discovered the missing millions in a dormant account in the council's housing department.

The Advertiser exclusively broke the story last week and was followed up by the national media the next day.

Coun Renard said: "I'm not seeking to mislead anyone whether in reality this money was in several different parts I don't know the fact is there's money to be spent on council tenants that no one knew was there before."

Mr Thompson and his wife have now set up a limited company specialising in interim management. He will work for three days a week at a council in North London while continuing to enjoy the quiet life away from local government at his Hinton Parva home.