Joran Mendel has over 20 years of strategic financial and commercial experience advising central and local government at Board level
Review of benefits of insourcing
Joran Mendel
03 Dec 2025
Introduction
Welcome to our comprehensive Review of Benefits of Insourcing, a detailed report produced by Local Partnerships. We extend our thanks to the Local Government Association (LGA) for sponsoring this work.
This report provides essential insight into the growing trend of insourcing, the process where local authorities bring public services, previously delivered by external providers, back into direct public ownership. This movement is largely driven by local authorities seeking greater control and better value.
Our review summarises the anticipated benefits of insourcing, drawing on information described by the councils implementing these changes. We have analysed a series of case studies across four key service areas: Facilities Management, Waste Management, Temporary Accommodation, and Adult Social Care
Conclusion
The findings are grouped into anticipated financial benefits and non-financial benefits. While councils often anticipate achieving greater overall value for money, immediate financial benefits have typically been anticipated as limited and not the key driver in overall decision-making. Non-financial benefits, which all flow from the councils having increased control over service delivery, include drivers such as higher quality/better outcomes, improved integration and collaboration, greater adaptability to changing circumstances, and alignment with council priorities.
The report also includes useful comparisons of case studies where continued outsourcing was recommended despite the council’s insourcing considerations.
Use this review to understand the scope, anticipated impacts, and risks associated with adopting the insourcing model within local government services.
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