Full Breakdown
Local Councils Face Financial Challenges and External Spending
12/20/2025, 10:25:59 PM
Stoke-on-Trent City Council's Investment in Educational Psychology
Stoke-on-Trent City Council has approved a budget of up to £1.6 million to hire external agency staff to address a significant shortage of educational psychologists (EPs) within the council. Since 2020, the council has struggled to fill six EP positions due to a national staffing crisis, resulting in a backlog of assessments for children with special educational needs. The council's use of the recruitment agency Reed has improved the completion rate of education, health, and care plans (EHCPs) from 29% to 84%, surpassing the national average.
Councillor Sarah Jane Colclough, the cabinet member for children's services, emphasized the necessity of this expenditure to maintain timely assessments and legal compliance while the council continues its efforts to recruit and train internal staff. The contract with Reed is set to expire in December, prompting the council to initiate a procurement process for external EP services for the next two years.
Derbyshire County Council's Consultant Expenditure
In a separate initiative, Derbyshire County Council, led by Reform UK, plans to allocate £5 million to hire external consultants aimed at identifying potential savings between £19.2 million and £38.7 million. This decision comes amid ongoing financial challenges, including a projected £1.3 million overspend and a reliance on reserves that have been significantly depleted over the past three years.
Council officials have acknowledged that the current operating model is unsustainable, citing high operating costs and an oversized workforce. The council's previous administration had already indicated the need for substantial savings, with plans to cut up to 2,000 staff members. The Reform UK leadership has expressed optimism about the council's financial position but cautioned that significant challenges remain.
Criticism and Opposition
The spending decisions have drawn mixed reactions. In Derbyshire, Cllr Alex Dale, leader of the Conservative opposition, welcomed the redesign of the council’s operating model but raised concerns about ensuring that the consultants deliver the promised savings before any payments are made. Labour group leader Cllr Anne Clarke questioned the feasibility of achieving the projected savings given the wide range of estimates.
In Stoke-on-Trent, while the council's actions have led to improved performance in EHCP completions, there remains a critical need for sustainable recruitment strategies to avoid future reliance on external staff.
Official Statements & Responses
Stoke-on-Trent City Council officials stated, “To avoid delays and maintain legal compliance, the council wishes to launch a formal tender to bring in qualified external professionals.” Meanwhile, Derbyshire County Council officials noted that the “do nothing” approach is unsustainable and risks further depletion of reserves.
What's Next
Both councils are poised to implement their respective plans, with Stoke-on-Trent focusing on securing external EP services and Derbyshire seeking to identify efficiencies through consultant assessments. These initiatives reflect broader trends in local governance as councils navigate financial pressures and service delivery challenges.
