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

Executive Director of Place and Customer

Essex County Council
up to £179,404 per annum
Shape the Future of Essex. Drive climate action. Deliver for our communities. Essex
Recuriter: Essex County Council

Director of Social Work and Social Care

Trafford Council
£100,731 to £104,625
You will join a values-driven senior leadership team, providing visible and responsive leadership. Manchester
Recuriter: Trafford Council

Cook - Care home

West Northamptonshire Council
£13.52ph
Southfields Care home Rated GOOD by CQC provides exceptional levels of support to older persons living with Dementia, Physical disabilities or /and Sensory impairments. Situated in a residential suburb in Northampton, offering a wonderful living environm Northampton
Recuriter: West Northamptonshire Council

Assistant Engineer Bridges and Structures

North Yorkshire Council
£31,537 - £42,839
We are looking for an assistant engineer or engineer to join our Bridges and Structures team. Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Environmental Services Contract Manager

East Devon District Council
£52,413 - £59,615 per year
This is a role with real strategic influence. From shaping policy and commissioning service improvements Devon
Recuriter: East Devon District Council
Linkedin Banner