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.

For your free daily news bulletin
Highways jobs

Payroll Administrator

Northumberland County Council
£20,444 - £22,129
Northumberland County Council operates a huge range of services across one of the largest counties in the UK. Northumberland
Recuriter: Northumberland County Council

Specialist Advisory Teacher - Developmental Language Disorder

Cumbria County Council
Teachers Pay and Conditions
An exciting opportunity has arisen for a new colleague, who is a qualified teacher, with expertise and experience of developmental language delay. Penrith, Cumbria
Recuriter: Cumbria County Council

ASYE Occupational Therapist - Long Term Intervention Team Kendal

Cumbria County Council
£28,226 – £29,174
We are looking for newly qualified Occupational Therapy professionals, who are passionate about their vocation and would like to join our team. Cumbria
Recuriter: Cumbria County Council

Social Worker - Long Term Intervention Team

Cumbria County Council
£31,895 – £32,798
Following an exciting and ambitious programme of change within Adult Social Care. Cumbria
Recuriter: Cumbria County Council

Strategic Communications Executive

Lancashire County Council
Do you believe in the power of communications to bring about change? Preston, Lancashire
Recuriter: Lancashire County Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.