Southwark Council has come under fire after it was revealed that it spent a staggering £31 million on consultants and agency staff in less than 10 months — a £6.2 million increase from the previous year’s expenditure over the same period. The figures, uncovered by the Southwark Liberal Democrats, have sparked outrage among local residents and political figures, who are questioning the council’s financial priorities amid ongoing economic challenges.
The breakdown of the spending shows that £2 million was spent on consultants alone since April 2024, marking a £300,000 rise compared to the previous year. The remaining £29 million was spent on agency staff, highlighting the significant financial burden of relying on temporary staff rather than filling positions with permanent employees.
Councillor Victor Chamberlain, the Leader of the Liberal Democrat Opposition, labelled the expenditure as “a waste of money.” He criticised the Labour-run council for spending millions on consultants and agency staff at a time when many local families are facing financial hardship. “When money is tight for so many families, the council must spend wisely,” Cllr Chamberlain stated. “Here in Southwark, there is clear waste that is typical of a Labour council. Liberal Democrats would prioritise investing in frontline services and community projects, not wasting millions on consultants.”
However, Cllr Stephanie Cryan, the Cabinet Member for Equalities, Democracy, and Finance, defended the council’s decision to spend on consultants, explaining that these services were necessary for projects requiring specific technical knowledge or expertise. “We’re committed to permanently employing staff and bringing services back in-house wherever possible,” Cllr Cryan said. “The vast majority of our workforce is in-house. We regularly review spending on consultants, working to keep it as low as possible and ensure that any work where we consult on has a positive outcome for our residents, with their priorities at its heart.”
Most of the increased spending on consultants is understood to be linked to the procurement and implementation of a new finance, business, IT, and HR system for the council. This complex project has required external expertise to ensure its successful delivery. Yet, according to Southwark Liberal Democrats, consultants have also been hired for other projects, including the Southwark 2030 plan — the borough’s ambitious vision for the future, which the Labour-led council has worked on in collaboration with local residents.
Cllr Kieron Williams, the Leader of Southwark’s Labour Group, described Southwark 2030 as “our shared vision for 2030,” aiming to create “a fair, green, and safe Southwark where everyone can live a good life as part of a strong community.” Critics, however, are concerned about the costs associated with the plan, particularly when funds are being directed towards consultants rather than community services.
In addition to this, Southwark Liberal Democrats have highlighted that consultants have been used to advise the council on its controversial programme of school closures. Over the past two years, four schools in the borough have been shut, with 16 more identified as being at risk of closure. This decision comes amid falling student numbers in inner London boroughs, with many schools struggling to maintain enrolment figures. Critics of the closures argue that the use of consultants to advise on such decisions may be exacerbating the financial strain on the local education system.
Local residents have expressed concern that the £31 million spent on temporary staff and external consultants could have been better utilised to support vital local services, such as education, healthcare, and social care, particularly during the cost-of-living crisis. Many are asking why the council continues to rely on external expertise rather than investing in its own workforce and improving service delivery within the community.
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Despite the backlash, Cllr Cryan insisted that the decision to use consultants and agency staff was driven by the need to address specific skill shortages and to ensure that critical projects are delivered effectively. She reassured residents that the council is committed to reducing spending on outsourcing and bringing services back in-house wherever possible.
The figures have raised important questions about how Southwark Council allocates its resources and whether the spending on consultants and temporary staff is a sustainable approach in the long term. As the council faces increasing pressure to demonstrate value for money and transparency, the ongoing debate is likely to continue, with local residents keen to see their tax contributions directed towards improving essential services rather than funding external expertise.
