URGENT UPDATE: Reform councils have dramatically increased spending on private sector contracts, with figures surging to £5.5 billion in just six months since their election on 1 May 2025. This is a staggering 97% increase from the £2.8 billion spent in the same period the previous year, raising questions about the party’s efficiency goals.
Authorities confirmed that the jump in spending reflects a new approach to outsourcing, as Reform insiders argue this indicates greater efficiency. However, critics worry that the high contract values may hinder the party’s promises to reinvigorate local government and implement council tax cuts.
Among the most significant contracts, Nottinghamshire County Council awarded a massive £3.7 billion deal to Veritas Group for catering and facility management services. Kent County Council also saw its procurement contract value double, skyrocketing from £207 million in May-November 2024 to £408 million in the same timeframe of 2025.
Despite Reform’s ambitious pledges, including the establishment of a ‘Department of Government Efficiency’ led by former Chairman Zia Yusuf, local parties are facing mounting financial pressures. Evidence shows that eight Reform councils have already announced plans for a 5% council tax increase, the maximum permitted by law.
“The political party in control doesn’t change the spending pressures councils face,” said Jonathan Carr-West, Chief Executive of the Local Government Information Unit. “Most of these pressures do not disappear when a new party is elected to lead a council.”
Moreover, councils are grappling with the ongoing pressures of social care, children’s services, and temporary accommodation costs. The Local Government Chronicle highlights that many councils are forced to cut spending or increase taxes, often against their will.
A spokesperson for Reform UK dismissed the criticisms, stating, “This is a misleading and fundamentally flawed comparison that fails to fairly reflect how business, contracts, councils, and money work. What matters is the value those contracts deliver for residents.”
As the situation develops, observers are keen to see how Reform will balance these rising expenses with their promises of efficiency and tax reductions. The upcoming months will be critical as these councils navigate the complexities of contract management while trying to meet community needs.
Stay tuned for further updates on this evolving story as Reform councils attempt to strike a balance between spending and efficiency amid mounting challenges.
