CONSULTANTS are being hired at a cost of £20 million by Somerset Council to help the near-bankrupt authority balance its budget.
But the move has been criticised by some councillors and campaigners who have dubbed it ‘South West Two’.
Critics referenced a previous public-private partnership with IBM called ‘South West One’ which eventually saw the council buy itself out of the deal after promised savings failed to materialise.
Newton Consulting Ltd has been hired to work with remaining council staff following several hundreds of job cuts.
The council faces a budget gap of more than £45 million this financial year which is forecast to rise next year to more than £101 million, and £190 million by 2029/30.
Newton Consulting will look to cut the cost of delivering services while also changing the way services are delivered and staff carry out their work.
Somerset executive Cllr Theo Butt Philip said: “To do things differently, to do things better, to deliver for the people and communities of Somerset, and to deliver a truly financial sustainable council in the time available to us, we need to bring in additional expertise and capacity.
“This is not outsourcing, nor is this a top-down reorganisation of our workforce.
“We will make sure we make best use of the skills and experience that so many of our staff have.
“If that requires us to bring in extra resources elsewhere to enable them to focus on transformation, that is definitely something we will consider and implement in certain cases.”
However, fellow executive Cllr Mike Rigby said: “I do not mind saying I am nervous about this.
“We have two recent examples of council-wide transformation processes in Somerset, and it is fair to say neither of them went well.”
Council critic Chris Mann said: “The council leader constantly says local government funding is broken.
“Yet, only 30 councils nationwide have been granted exceptional financial support, which is borrowing or selling assets to fund day-to-day expenditure.
“Somerset’s risk register highlights redesign failures, budget weaknesses, low staff morale, and an inability to recruit the digital and technical expertise we desperately need.
“Have we learned nothing from the disaster of South West One, which was supposed to save £192 million but instead cost us £80 million?”
Mr Man said the latest deal was ‘South West Two’ but on a much larger scale, ‘risky, very disruptive, and a bad choice’.
Campaigner David Orr said: “The risk of effective bankruptcy surely looms prior to the local elections in May, 2027.
“This council is still a long way from realising the cash savings inherent in a unitary authority.”
Mr Orr’s wife Brenda told councillors: “The merger of five councils was supposed to save money.
“It was supposed to protect frontline services, yet twice now, your own auditors have said you are behind.
“Yet, the director responsible sits on £150,000 a year, while consultants are brought in at a cost of at least £20 million, and the chief executive presiding over this fiasco remains in post on more than £205,000 a year.”
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