Fixing the Broken System: Why MSPs Are the Future of Local Government Recruitment

Local government recruitment is facing a systemic crisis. Councils across the UK are grappling with spiralling agency spend, fragmented supply chains, and a chronic lack of strategic workforce planning. The result is a recruitment landscape that is reactive, expensive, and ill-equipped to meet the evolving needs of public service delivery.

At the heart of this challenge lies a fundamental question: should councils operate with a Managed Service Provider (MSP), a Neutral Service Provider (NSP), or no service provider at all? Each model carries distinct implications for cost control, supplier management, and long-term workforce sustainability.

NSPs, such as Comensura and Matrix SCM, offer breadth of supply and a level of neutrality that can be appealing. However, their transactional nature often fails to foster the strategic partnerships required to drive transformation. Councils frequently experience high levels of off-contract spend under NSP frameworks, undermining the very compliance and cost-efficiency these models are designed to deliver. Moreover, the structure of NSP supply chains tends to prioritise volume over value, resulting in a low-impact recruitment service that does little to address the sector’s deeper retention and attraction challenges.

In contrast, MSPs when implemented effectively offer a more holistic and strategic approach. They provide councils with the tools to track and analyse agency spend, enforce compliance, and design workforce solutions that align with organisational goals. Crucially, MSPs can support the transition away from interim-heavy teams, helping councils to refocus on permanent recruitment through brand development, attraction strategies, and talent pipelining.

But not all MSPs are created equal. The best MSPs go beyond transactional fulfilment. They embed themselves within the council’s culture, align with public sector values, and offer consultative support on resource planning and organisational design. They act as true partners not just suppliers helping councils to operate differently, reduce reliance on agency staff, and build resilient, future-ready teams.

This blog explores why MSPs, particularly those that add genuine value, represent the most effective recruitment model for local government. In a sector under financial pressure and facing increasing complexity, the need for strategic, values-led recruitment support has never been greater. The time to fix the broken system is now and MSPs are the key to unlocking that change.

Source: Navartis

The Financial Burden of Agency Spend

Agency staffing has become one of the most significant and under-scrutinised financial pressures facing local authorities today. Councils in England are collectively spending an estimated £7 billion annually on agency workers a figure that continues to rise year-on-year. In many cases, 65–70% of this spend is channelled through Neutral Service Providers (NSPs) such as Matrix SCM and Comensura. While these frameworks offer breadth of supply, they often lack the strategic oversight needed to manage spend effectively.

Take Bracknell Forest Council as a case in point. Despite having Matrix in place, hiring managers frequently bypass the system, leading to off-contract spend that fragments procurement and undermines financial control. This is not an isolated issue. Across the country, councils are experiencing similar challenges, with off-framework recruitment becoming the norm rather than the exception.

The Local Government Association’s Spending Review 2025 has sounded the alarm, warning of a potential £8 billion funding gap by 2028/29. Agency staffing costs are a major contributor to this shortfall, particularly in services such as children’s social care, housing, and planning areas where recruitment difficulties are most acute. Without intervention, this trajectory threatens to destabilise council budgets and compromise service delivery.

Why Tracking Spend Matters

In the absence of a centralised mechanism to monitor and manage agency spend, councils face a range of risks:

• Budget overruns that erode financial resilience

• Poor value for money, with inflated margins and inconsistent rates

• Inability to forecast workforce needs, making strategic planning near impossible

This is where a well-structured Managed Service Provider (MSP) model can make a transformative difference. MSPs offer the infrastructure including Vendor Management Systems (VMS), real-time analytics dashboards, and dedicated account management to track, analyse, and reduce spend with precision. More than just a procurement tool, an MSP provides visibility. It enables councils to understand where money is going, which suppliers are performing, and where interventions are needed. This data-driven approach empowers local authorities to make informed decisions, negotiate better rates, and ultimately reduce reliance on agency staffing.

In a sector where every pound counts, the ability to track and control spend is not a luxury it’s a necessity. And it’s one that only a mature, values-led MSP can reliably deliver.

The Problem with NSPs

Neutral Service Providers (NSPs) such as Comensura and Matrix SCM have become a common fixture in local government recruitment. Their appeal lies in the breadth of supply they offer giving councils access to a wide range of agencies under a single framework. However, this model, while administratively convenient, often fails to deliver the strategic value that councils urgently need.

The relationship dynamic within NSP frameworks is inherently transactional. Suppliers compete on speed and price, not on quality or alignment with council values. This creates a race to the bottom, where the focus is on filling vacancies quickly rather than building sustainable teams or addressing long-term workforce challenges.

Moreover, off-contract spend is rife within NSP arrangements. Hiring managers frequently bypass the framework, either due to perceived inefficiencies or lack of trust in the system. This undermines compliance, weakens procurement oversight, and leads to inflated costs. Councils lose visibility over who is being hired, at what rate, and through which supplier making it impossible to manage spend effectively.

The supply chain model itself is often rigid and unaccountable. Agencies within the framework may not be incentivised to collaborate or innovate, and the NSP lacks the levers to drive performance improvement. As a result, councils struggle to transition away from interim-heavy teams, perpetuating a cycle of short-term fixes and long-term instability.

In short, while NSPs offer scale, they rarely offer strategy. And in today’s climate, strategy is what local government needs most.

Source: LGA

The MSP Advantage

Managed Service Providers (MSPs) represent a fundamentally different approach one that prioritises partnership, performance, and strategic workforce planning. Rather than simply managing transactions, MSPs work alongside councils to design and deliver recruitment solutions that are aligned with organisational goals and public sector values. A well-structured MSP offers:

• Strategic workforce planning and organisational design support, helping councils forecast needs, build talent pipelines, and reduce reliance on agency staff.

• Reduced agency spend, achieved through better supplier management, rate control, and improved fulfilment rates.

• Consultative partnerships, where the MSP acts as an extension of the council’s HR and resourcing function, not just a procurement intermediary.

Real-world examples illustrate the impact:

• Reed, operating as an MSP for Nottinghamshire County Council, achieved a 97% fill rate, managing a supply chain of 58 agencies and supporting over 200 hiring managers. Their model delivered speed, quality, and cost-efficiency.

• Opus People Solutions, a Local Authority Trading Company (LATCO), reinvests profits back into the sector. Their tailored MSP models are designed specifically for local government, with a focus on reducing agency reliance and enhancing permanent recruitment strategies.

Copyright: OPUS

The best MSPs go beyond fulfilment. They offer insights, challenge assumptions, and help councils operate differently. They understand the nuances of public sector recruitment and bring the tools, people, and values needed to make a real difference.

In a sector facing financial constraints and complex workforce challenges, MSPs when values-led and strategically focused are not just a better option. They are the only viable path forward.

What Makes a Good MSP?

Not all Managed Service Providers are created equal. While the MSP model offers the potential to transform recruitment in local government, its success hinges on the quality of the provider not just the framework. A good MSP is more than a gatekeeper of supply; it is a strategic partner, a cultural fit, and a driver of workforce transformation. Here are the three pillars that define a high-performing MSP:

1. Values Alignment

The best MSPs understand the public sector not just its processes, but its purpose. They align with the values of local government: service, integrity, inclusion, and community impact. This alignment is not superficial; it informs how they engage with hiring managers, suppliers, and candidates.

OPUS People Solutions stands out in this regard. As a Local Authority Trading Company (LATCo), OPUS reinvests profits back into the sector, demonstrating a genuine commitment to public service outcomes. Their ethos is rooted in collaboration, transparency, and long-term value not short-term margins.

Reed and Hays also bring strong credentials, with robust ESG (Environmental, Social and Governance) commitments and deep experience in local authority recruitment. Their understanding of the sector’s challenges from social care staffing to regeneration and planning enables them to tailor solutions that reflect the realities councils face.

2. Effective Delivery Vehicle

Even the most values-led MSP will falter without a well-oiled delivery mechanism. This means having a supply chain that is:

• Well-managed, with clear terms and conditions

• Responsive, with high fulfilment rates and low time-to-hire

• Compliant, with robust off-contract controls

A good MSP ensures that suppliers are not just onboarded, but actively engaged. They monitor performance, enforce standards, and maintain agility in response to changing demand. However, this system can be undermined by poor account management. Territorial behaviours, siloed thinking, and a lack of partnership mindset are red flags. An MSP must foster collaboration not control. When account managers become gatekeepers rather than enablers, the entire model suffers. Councils need MSPs who empower their supply chain, not stifle it.

3. People Who Make It Work

Ultimately, the success of an MSP comes down to people. The individuals who manage relationships, solve problems, and drive innovation are the linchpins of the model.

Professionals like Mohammed Akuji (Reed) and Ben Dixon (OPUS) exemplify what good looks like. They build trust with suppliers, understand the nuances of council culture, and bring strategic thinking to every interaction. Their ability to balance operational delivery with consultative support makes them invaluable partners to local authorities. These are not just recruiters they are workforce architects. They help councils navigate complexity, reduce spend, and build sustainable teams. Their presence elevates the MSP from a transactional service to a transformative force.

Conclusion: The Path Forward: Strategic Partnerships Over Transactional Models

The current recruitment model in local government is fundamentally broken. It is dominated by interim hires, driven by short-term fixes, and haemorrhaging public money through uncontrolled off-contract spend. Councils are operating in a reactive cycle plugging gaps rather than building sustainable teams and the result is a workforce strategy that lacks coherence, resilience, and long-term value.

To move forward, councils need more than just a supplier. They need a mechanism to track and control agency spend with precision and transparency. They need a partner who can help them transition away from interim dependency and towards a permanent, values-aligned workforce. And they need a Managed Service Provider that delivers not only speed and cost-efficiency, but also strategic insight, cultural alignment, and genuine support for organisational transformation.

Neutral Service Providers and fragmented supply chains may offer breadth, but they rarely offer depth. The future lies in MSPs but not just any MSP. The sector needs MSPs that understand local government, share its values, and are committed to helping councils operate differently. MSPs that go beyond transactional fulfilment and instead act as strategic enablers, workforce architects, and trusted partners. The answer from the Truth About Local Government is clear:

MSPs are the way forward but only those that add the value the sector needs.