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Scottish Conservatives from a recently published wider Audit Scotland report into local government finances.

The Scottish Conservatives said the extent and size of the pay-outs suggested councils should tighten up their procedures, while the Taxpayers’ Alliance pressure group said they “beggared belief ”.

The report also found £79m in council reserves was used last year for general running costs and some local authorities risk running out of general fund reserves if officials continue to use them at currently planned levels.

Scottish Conservative local government spokesman Alexander Stewart said: “People will be horrified that hundreds of millions of pounds have been used in this way.

“Everyone understands the need for councils to become more efficient, and reducing the headcount in certain departments may be a way of doing that.

“But the average pay-out is £40,000, which means some senior staff will have been getting golden goodbyes to make the eyes water.”

John O’connell, chief executive of Taxpayers’ Alliance, said: “This enormous sum truly beggars belief.

“Public sector workers are already 10 per cent better off than those in the private sector, with better pensions and more job security.

“These golden goodbyes are a slap in the face to all hardpressed taxpayers and should be ended immediately.”

The sum paid out to leaving workers came to light at a time