Cashing in on austerity

Council austerity cuts have over the last six years decimated public services and have cost more than half a million jobs, with local authorities in the poorest areas being hit the hardest.

But former prime minister David Cameron’s mantra – that ‘we’re all in this together’ – rings ever more hollow as it comes to light the millions of pounds councils are spending on temporary consultants and interim directors who essentially profit from austerity.

‘Strongly deplored’

One such scandal came last week, when it was revealed that Walsall Council would be paying a new interim director £200,000 over a 12-month contract – this will amount to between £800 and £1000 a day for a four-day work week.

The latest hire comes at a time when the council will have to scrape together £86m in savings over the next four years and, after being ravaged by austerity, will be forced to shut 14 of its 15 libraries. Hundreds of jobs may be on the chopping block as well. Walsall’s famed Leather Museum will now have to be relocated to its one remaining library.

Although Walsall Council has confirmed that new interim director, Julie Alderson, will not be eligible to claim expenses, the Express and Star reported that in a previous post as Kirklees Council interim director, she claimed thousands in expenses, including ÂŁ2,117.60 for rent in a flat whose complex had a Jacuzzi and a gym, ÂŁ1,704.40 for mileage, ÂŁ276.42 for meals and groceries, ÂŁ312.80 for parking, ÂŁ85.91 for electricity and even ÂŁ11.52 for batteries.

Unite national officer for local authorities Fiona Farmer condemned the council’s hire.

“Walsall Council hiring Julie Alderson as interim director for change and governance on a 12-month contract on this enormous daily salary is to be strongly deplored,” she said.

“The council appears to have taken a step back from the real world when our hard-pressed members are endeavouring to provide the best possible frontline services to the public, such as staffing the threatened libraries, in an environment of relentless cutbacks.

“Currently there are more than 300 council jobs at risk, yet this financial merry-go round for ‘consultancy services’ continues unabated – and it leaves a very sour taste in the mouth,” she added.

‘Defies belief’

To add insult to injury, it emerged today (November 30) that Walsall Council had in fact hired another highly paid consultant on a salary of ÂŁ75,000 for a six-month contract.

Lucy Trueman was hired in October as a ‘transformation manager’ – in other words a person hired to carry out austerity cuts.

Farmer said that reports that another highly paid consultant had joined “the Walsall council managerial gravy train defies belief.

“It is difficult for any council to maintain its reputation for prudence and good governance when it is making such outrageous appointments, and then, at the same time, serving up an unpalatable diet of cuts in services for the citizens of Walsall and 300 job losses for the dedicated workforce, including two Unite full time convenors,” she added.

“This is austerity for the many and an apparent abundance of riches for an elite cadre of ‘consultants’.

“Unite asks, yet again, why there is not this expertise available amongst the top management at the council to carry out these tasks – the people of Walsall deserve better than the present situation, which threatens to make the council a sad laughing stock.”

Growing trend

Hiring temporary consultants on massive salaries to help carry out the millions of pounds in austerity cuts is becoming increasingly common.

A BBC investigation earlier this month revealed that local authorities in Wales had spent an astounding £56m on consultancy fees last year. Stoke City Council spent £1.2m on consultants in 2014, including more than £100,000 in expenses. And last year Hampshire County Council created a new team of ‘transformation consultants’, costing £300,000, while still using the services of external consultancy Deloitte, which it paid millions. This expenditure happened at a time when the local authority had to make £98m in cuts.

Just last month, the BBC looked into the growing use of management consultants among local authorities in the documentary Who’s Spending Britain’s Billions?

Unite is at the forefront of fighting cuts to local services – find out more about the union’s Fair Deal for Local Government campaign here.