Recent analysis reveals that Perth and Kinross Council has allocated a substantial sum of at least £2.5 million to external consultancy services over the past three fiscal years, from 2022 to 2025. This expenditure covers a wide array of specialized projects and advisory roles, highlighting the local authority’s reliance on external expertise to navigate complex challenges and deliver on key initiatives.
The financial outlay for these services has demonstrated a consistent upward trend during this period. In the 2022/23 financial year, the council’s consultant fees amounted to £721,573. This figure saw an increase in 2023/24, reaching £779,553, and further escalated to £935,210 in the most recent fiscal year, 2024/25. This escalating pattern reflects a growing reliance on external specialists for various governmental functions and projects within the region. Strategic Outsourcing: A Necessity for Modern Local Government?
The council has articulated that engaging outside consultants can often be a more cost-effective and time-efficient approach for specific tasks than maintaining in-house teams. A prime example cited is a review of the council’s arm’s-length external organizations (ALEOs), which was reportedly completed faster and at a lower cost by external contractors.
Councillor Alasdair Bailey, who serves as vice-convener of the council’s scrutiny and performance committee, acknowledged the public’s potential concern regarding the rising figures. However, he offered a broader perspective, stating: “The headline figures are concerning. But to put this into perspective, the use of consultants sometimes allows the council to do more without having to employ full-time permanent staff. Gone are the days when a council the size of Perth and Kinross can justify having all the specialists in the building all of the time.”
Councillor Bailey attributed this trend, in part, to what he described as “the inevitable consequence of the years of real-terms cuts we’ve seen to council budgets.” This viewpoint suggests that external consultants fill critical gaps in expertise and capacity, enabling the council to continue delivering essential services and progress on strategic projects despite tightening financial constraints. Key Projects and Their Consultancy Costs
The 31 contracts awarded during this three-year span encompass a diverse range of projects, from large-scale infrastructure developments impacting Perth’s urban landscape to highly specialized advisory services. For instance, a significant investment of £594,300 was made in consultancy support for the Perth People Place and Perth Transport Futures programme, which includes the ambitious Cross Tay Link Road project, designed to enhance connectivity and alleviate traffic congestion around Perth.
Smaller, yet crucial, advisory services also feature prominently, such as a £5,625 allocation for VAT advice related to the controversial PH2O leisure centre project, which aims to replace the long-standing Perth Leisure Pool. This demonstrates the council’s need for niche expertise even on individual components of larger initiatives.
Other notable expenditures include:
– A substantial £217,819 for the Dunkeld Flood Protection Scheme, projected over six years until 2031, aiming to safeguard communities from flood risks. – £99,968 for the Craigie Burn Flood Protection Scheme, with a five-year timeline. – Bridge inspection and assessment services for various locations, including a £174,646 contract for Principal Bridge Inspections Pack B4 and £94,056 for the Blairgowrie Bridge Assessment. – £96,180 was spent on SAP Business Objects Licences and Support Services for a year, highlighting ongoing IT infrastructure needs. – Urban planning and transport projects, such as £85,914 for the Perth Circulation Plan and £78,125 for the Comrie to Crieff Path Project, indicate investment in enhancing local mobility and public spaces. – Specialized support for the Tay Forest National Park Bid Consultancy came in at £19,853, reflecting the region’s aspirations for environmental recognition and tourism. – Surveys to inform public policy decisions were also commissioned, including £80,000 for a Tenant Satisfaction Survey and £42,000 for a Pavement Parking Survey, responding to new legislative requirements. – Maintenance and support for the council’s firewall incurred a cost of £202,835 over five years, underscoring cybersecurity priorities. – Feasibility studies, like the £28,139 assessment for a local authority-operated bus depot in Aberfeldy, demonstrate proactive planning for rural transport solutions.
It’s important to note that while most of these financial details are publicly accessible via the Public Contracts Scotland website, a few contracts did not disclose their costs, which the council attributes to “commercially sensitive” information. The decision to employ external consultants, despite the significant cumulative cost, underscores the evolving operational landscape for local authorities like Perth and Kinross Council, balancing internal capacity with the need for specialized, timely, and often cost-effective external support for a wide range of public services and developments.
The financial outlay for these services has demonstrated a consistent upward trend during this period. In the 2022/23 financial year, the council’s consultant fees amounted to £721,573. This figure saw an increase in 2023/24, reaching £779,553, and further escalated to £935,210 in the most recent fiscal year, 2024/25. This escalating pattern reflects a growing reliance on external specialists for various governmental functions and projects within the region. Strategic Outsourcing: A Necessity for Modern Local Government?
The council has articulated that engaging outside consultants can often be a more cost-effective and time-efficient approach for specific tasks than maintaining in-house teams. A prime example cited is a review of the council’s arm’s-length external organizations (ALEOs), which was reportedly completed faster and at a lower cost by external contractors.
Councillor Alasdair Bailey, who serves as vice-convener of the council’s scrutiny and performance committee, acknowledged the public’s potential concern regarding the rising figures. However, he offered a broader perspective, stating: “The headline figures are concerning. But to put this into perspective, the use of consultants sometimes allows the council to do more without having to employ full-time permanent staff. Gone are the days when a council the size of Perth and Kinross can justify having all the specialists in the building all of the time.”
Councillor Bailey attributed this trend, in part, to what he described as “the inevitable consequence of the years of real-terms cuts we’ve seen to council budgets.” This viewpoint suggests that external consultants fill critical gaps in expertise and capacity, enabling the council to continue delivering essential services and progress on strategic projects despite tightening financial constraints. Key Projects and Their Consultancy Costs
The 31 contracts awarded during this three-year span encompass a diverse range of projects, from large-scale infrastructure developments impacting Perth’s urban landscape to highly specialized advisory services. For instance, a significant investment of £594,300 was made in consultancy support for the Perth People Place and Perth Transport Futures programme, which includes the ambitious Cross Tay Link Road project, designed to enhance connectivity and alleviate traffic congestion around Perth.
Smaller, yet crucial, advisory services also feature prominently, such as a £5,625 allocation for VAT advice related to the controversial PH2O leisure centre project, which aims to replace the long-standing Perth Leisure Pool. This demonstrates the council’s need for niche expertise even on individual components of larger initiatives.
Other notable expenditures include:
– A substantial £217,819 for the Dunkeld Flood Protection Scheme, projected over six years until 2031, aiming to safeguard communities from flood risks. – £99,968 for the Craigie Burn Flood Protection Scheme, with a five-year timeline. – Bridge inspection and assessment services for various locations, including a £174,646 contract for Principal Bridge Inspections Pack B4 and £94,056 for the Blairgowrie Bridge Assessment. – £96,180 was spent on SAP Business Objects Licences and Support Services for a year, highlighting ongoing IT infrastructure needs. – Urban planning and transport projects, such as £85,914 for the Perth Circulation Plan and £78,125 for the Comrie to Crieff Path Project, indicate investment in enhancing local mobility and public spaces. – Specialized support for the Tay Forest National Park Bid Consultancy came in at £19,853, reflecting the region’s aspirations for environmental recognition and tourism. – Surveys to inform public policy decisions were also commissioned, including £80,000 for a Tenant Satisfaction Survey and £42,000 for a Pavement Parking Survey, responding to new legislative requirements. – Maintenance and support for the council’s firewall incurred a cost of £202,835 over five years, underscoring cybersecurity priorities. – Feasibility studies, like the £28,139 assessment for a local authority-operated bus depot in Aberfeldy, demonstrate proactive planning for rural transport solutions.
It’s important to note that while most of these financial details are publicly accessible via the Public Contracts Scotland website, a few contracts did not disclose their costs, which the council attributes to “commercially sensitive” information. The decision to employ external consultants, despite the significant cumulative cost, underscores the evolving operational landscape for local authorities like Perth and Kinross Council, balancing internal capacity with the need for specialized, timely, and often cost-effective external support for a wide range of public services and developments.