Council chiefs have launched an inquiry into the soaring cost of English classes for ethnic minorities including asylum seekers.

A senior member of Newcastle CIty Council has been suspended while the investigation takes place after a budget overspend of £500,000 was revealed.

There is no suggestion of any financial impropriety.

The investigation is into the management of the budget including increases in staff employed in the council-run English for Speakers of Other Languages service.

A grant is provided by the Learning and Skills Council and the service is managed by the city council.

In a statement, the city council said: "A budget overspend of around £500,000 has been identified during routine budget monitoring.

"A senior member of staff has been suspended while an internal investigation takes place.''

A spokeswoman said: "Newcastle City Council had not issued any redundancy notices to any members of staff.

"We can confirm that we are making savings in the budget and this may include a reduction in staff numbers.

"We are currently carrying out informal consultations with staff and their trade union representatives on this matter.

"While we may need to change the way in which courses are provided, we will ensure that the same level and quality of service is maintained.''