New report reveals trends in councils’ third-party spending – Local PartnershipsNew report reveals trends in councils’ third-party spending – Local Partnerships
The sixth edition of the almanac – which launched today – explores how spending is changing across key services, which suppliers councils are working with and how expenditure compares with estimated supply-chain carbon emissions.
It draws on key data from Oxygen Insights; wider evidence on funding, service demand and infrastructure pressures; and findings from Local Partnerships’ national Contract Management Pioneer Programme (CMPP) survey.
These sources suggest that almost 44p in every £1 of English councils’ third-party spending now goes towards vulnerable citizens and public health.
Spending on these services has increased by £12.7 billion over the past three years, while other parts of local government expenditure have grown more slowly or declined.
With total third-party spend reaching £98.5 billion in FY25/26, these changing patterns highlight the pressures councils face in balancing essential services, limited resources and competing priorities.
Local Partnerships’ Chief Executive Adele Gritten said: “Local government is under increasing pressure to deliver essential services while making the best use of limited resources.We are delighted to have worked with Oxygen Finance on this year’s Almanac. By looking beyond the headline figures to understand how spending is changing, we can help councils make more informed decisions about procurement, supplier relationships and contract management, and deliver better value for their communities.”
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