Norfolk County Council axes cost-cutting consultants

As Norfolk County Council sought to identify areas for spending cutbacks, the authority brought in PA Consulting to help carry out a strategic review of operations. However, following public pressure around the substantial expenses incurred by contracting a private enterprise to carry out the work, the council has opted not to renew the engagement, and continue its review using “internal capacity” instead.

In early 2022, the Conservative-controlled Norfolk County Council revealed it was facing a £60 million funding gap. While leaders suggested it was too early to say if that would mean cuts to services or job losses, they brought in consultants to conduct a "major review" of the council, in a move they said would help make the authority "fit for the future".

In a move that enraged local community groups, the authority then opted to bring in professionals from PA Consulting to help carry out the review. The first year of the contract was worth £1.9 million, according to reports from the Eastern Daily Press, and saw the firm undertake a major examination of operations at County Hall.

Over the last 12 months, pressure mounted on the administration regarding the potential multi-million cost of keeping PA in the role – at a time when it was apparently trying to save money. One year on, this has seen the council’s leaders decide not to take up an option to keep PA Consulting on for a further 12 months.

According to a county council spokesperson, the authority is “now in a better position to use our internal capacity for future efficiencies”. The statement suggested the review had helped the council get to this position, but added that this newfound strength meant the council had “decided against exercising the option to extend the contract."

At this time, the number of jobs which the council is set to shed is not clear – while 77 vacant posts have been decommissioned, and 26 staff are confirmed as taking voluntary redundancy, final figures will only be confirmed later in 2023. However, the authority suggests £17 million of cuts and savings in this year's budget were identified through the help of consultants working on the review.

The work eventually lead to recommendations that the council could save between £15 million to £20 million every year, by maximising performance via job reductions managed by staff turnover, redeployment and flexible retirement – as well as voluntary and potentially compulsory redundancies. But critics questioned the value for money the engagement with PA actually yielded, as well as the impact the cuts would have on public services.

Steve Morphew, leader of the opposition Labour group, said, "I’m pleased the consultants have been ditched but there should be no need for them in a well-managed organisation. The urgent need to bring back the chief executive role, that should never have been abolished, is evidence the Conservative cabinet hasn't got a grip."

Speaking on the cuts themselves, Jonathan Dunning, branch secretary for Unison at the county council, meanwhile added, "It is worrying. We have already expressed concern about the implications of a reduction in staffing levels on the quality of services, especially in children's services and adult social care, which are struggling to cope at the moment. We are yet to be convinced that savings can be made that will not impact on services."