The former communications chief of a North-East council told a tribunal yesterday that she discovered "widespread corruption" within the authority.

Jane Knox said Stockton Borough Council used false figures to win hundreds of thousands of pounds in Government funding - an allegation denied by the authority.

The tribunal in Newcastle was told the council used false figures to access funding from the Office of the Deputy Prime Minister.

When Ms Knox voiced her fears, an internal investigation was launched. It concluded there was no evidence to support her claims.

Ms Knox 52, of Ingleby Barwick near Stockton, said she was told she could not return to her £38,000-a-year post as head of communications unless she withdrew the allegations.

Her contract was dismissed last September and she is now claiming unfair dismissal.

Yesterday, she told the tribunal: "There is widespread corruption at the top of the council. I felt that everything possible was being done to cover this up.

"Fraud and financial impropriety occurred at Stockton Borough Council."

The council said her claims were without foundation.

Earlier, David Bond, the authority's director of law and democracy, told the tribunal there was no evidence to support the corruption claims.

Following investigations by an internal auditor, Mr Bond's report concluded there was nothing to back the claims, which referred to "financial impropriety" relating to the council's website and the launch of a new logo.

"I told them that if they thought there was still evidence to support their claims, they should call the police," he said.

The hearing, in Newcastle continues tomorrow.