Laura Sharman 28 January 2021

English councils spent £63bn on third parties last year

English councils spent £63bn on third parties last year image

Third party expenditure by local authorities in England has outstriped inflation for the last three years, new figures have revealed.

The Local Government Third Party Spend Almanac, published by Oxygen Finance and EY, shows local government spent £63bn with third party suppliers in 2019/20. More than a third of this (37%) incurred within the vulnerable citizens category

The overall amount is an increase of 9.7% over the last three years, although there was a real term reduction in some areas.

Ben Jackson, CEO at Oxygen Finance, said: 'At the macro level third party overall expenditure is higher than inflation, but we can see that revenue funded local government activity is reducing, whilst capital expenditure is increasing.

'Looking in more detail there is real term reduction in spending on facilities, public transport and libraries but significant increases in spend on children's social care, ICT infrastructure and major infrastructure like airports, leading to a near flat position overall.'

The research shows that councils are diverting funding from discretionary services like culture and leisure, to meet increased demand in areas such as infrastructure and vulnerable citizens.

SIGN UP
For your free daily news bulletin
Highways jobs

School Crossing Patrol

Durham County Council
Grade 1 £12.85 per hour
Join our School Crossing Patrol Service! Are you punctual and reliable? Do you have good communication skills and a strong sense of community spirit? Durham
Recuriter: Durham County Council

Project Manager

Durham County Council
£50,269 to £54,495 p.a. (Grade 14)
An exciting opportunity has arisen to be part of our Digital Programme and Communities Team within Digital Services as a Project Manager. If you have Durham
Recuriter: Durham County Council

Young Person's Advisor

Durham County Council
Grade 8 - £32,597 - £36,363
X1 Young Person’s Advisor (out of area) – Full-Time Temporary for 12 Months An exciting opportunity has become available within the Unaccompanied Asy Spennymoor
Recuriter: Durham County Council

Pest Treatment and Investigation Officer

Durham County Council
£30,024 - £33,699
Do you want a role where your work makes a real difference to local communities?     We’re looking for a Pest Treatment and Investigation Officer to j Durham
Recuriter: Durham County Council

Support Assistant (2 posts)

Durham County Council
£24,796 pro rata
Support Assistant Grade 1 Point 3 £24,796 pro rata Permanent, part time, term time only 32.5 hours, Mon – Fri, 9.00am - 4.00pm  Required to start as s Consett
Recuriter: Durham County Council
Linkedin Banner