Half a Billion and Rising: The Case for Reforming Interim Recruitment in Councils
- truthaboutlocalgov
- Nov 7, 2025
- 5 min read
Looking ahead to the period between 2025 and 2028, the cost of senior interim recruitment in UK local government is expected to rise significantly, not because of increasing day rates, but due to a marked expansion in the number of interim roles being deployed. This growth is being driven by two major forces: inflationary pressures and the sweeping changes brought about by local government reorganisation.
The government’s plans to replace 185 county and district councils with new unitary authorities across 21 areas are already reshaping the landscape. This reorganisation, part of a broader devolution agenda, is creating an unprecedented demand for experienced interim professionals to lead transformation, manage complex transitions, and maintain service continuity during periods of structural upheaval. Councils are increasingly turning to interim leaders not just to fill gaps, but to drive reform, stabilise services, and prepare the ground for new governance models.
In 2022–23, councils spent approximately £420 million on senior interim roles. With the anticipated 15 per cent increase in usage due to reorganisation and inflationary pressures, this figure is projected to rise to around £483 million annually by 2026. This estimate assumes that daily rates remain broadly stable, with Heads of Service typically earning between £600 and £850 per day, Assistant Directors between £750 and £900 per day, Executive Directors from £900 to £1,200 per day, and Chief Executives commanding rates up to £1,500 per day. These rates do not include agency margins, which average 23 per cent and significantly inflate the total cost to councils.
For example, an Executive Director earning £1,200 per day would cost the council £1,476 per day once agency fees are included. Over a six-month contract, this equates to nearly £192,000, with more than £35,000 going directly to the agency. When scaled nationally, agency margins on senior interim contracts are expected to reach £111 million per year by 2026, with individual recruiters earning between £11 million and £22 million annually in commission.
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The trend is clear and increasingly difficult to ignore: councils across the UK are using more interim professionals, for longer durations, and across a broader range of functions than ever before. What was once a targeted solution for short-term leadership gaps has, in many cases, become a default response to structural challenges, recruitment delays, and transformation fatigue. This shift is particularly pronounced in areas undergoing local government reorganisation, where the complexity of merging services, aligning organisational cultures, and establishing new governance frameworks demands a level of leadership agility that permanent recruitment processes often struggle to deliver quickly.
In these contexts, interim executives are no longer simply “holding the fort.” They are being brought in to lead major transformation programmes, redesign service delivery models, and navigate politically sensitive restructures. Their remit often includes stabilising operations, managing stakeholder relationships, and delivering measurable outcomes under intense pressure and scrutiny. Many bring deep sector experience and a track record of delivery, which can be invaluable in times of flux. However, the growing reliance on interim leadership raises important ethical and financial questions that cannot be ignored.
Is it sustainable to spend nearly half a billion pounds a year on temporary leadership? This figure, already substantial, is expected to rise further as councils face increasing demand for change and limited capacity to recruit and retain permanent senior staff. Are councils consistently tracking the return on investment of these appointments? In too many cases, interim contracts are extended without a clear evaluation of impact, and deliverables are either loosely defined or not monitored at all. Are interim roles being used strategically, with a clear purpose and exit plan, or are they becoming a convenient solution to avoid difficult decisions or bypass slow internal processes?
These questions matter because the money being spent is public money. Taxpayers have a right to expect that every pound invested in leadership whether permanent or interim delivers tangible value. Councils must ensure that interim appointments are outcome-driven, time-bound, and aligned with broader organisational goals. Without this discipline, the sector risks embedding a culture of dependency, where high-cost temporary leadership becomes the norm rather than the exception.
To manage costs and maximise value, councils must adopt a more disciplined and strategic approach to interim recruitment. This begins with the use of established procurement frameworks such as ESPO and CCS, which can help cap agency margins, introduce transparency, and ensure that councils are not paying above-market rates for temporary leadership. These frameworks also offer a level of consistency and accountability that is often missing from ad hoc recruitment arrangements.
Beyond procurement, councils must set clear deliverables and timeframes for every interim contract. Too often, interims are brought in without a defined scope of work, leading to extended contracts with limited oversight and unclear outcomes. Interim roles should be outcome-driven, with measurable objectives and a clear exit strategy. This not only ensures value for money but also reinforces the principle that interim leadership is a tool for targeted intervention, not a long-term substitute for permanent capacity.
Investing in internal leadership development is another critical step. By identifying and nurturing talent within their own organisations, councils can reduce dependency on external hires and build a more resilient workforce. This includes succession planning, mentoring programmes, and leadership development pathways that prepare staff to step into senior roles when needed. A strong internal pipeline not only saves money but also strengthens organisational culture and continuity.
Permanent recruitment processes must also be improved. Many councils struggle to attract and retain senior talent due to slow hiring cycles, outdated job descriptions, and a lack of compelling employer branding. Streamlining these processes and presenting a clear, attractive value proposition to candidates can help councils fill roles more quickly and effectively, reducing the need for costly interim cover.
As we move through the next three years, the principle must remain clear: invest to save, invest to transform, invest to make a difference. But do not invest to stall. Interim leadership should be a targeted tool for change, deployed with precision and purpose. It should never become a default response to indecision, delay, or poor planning. With public finances under pressure and communities relying on effective service delivery, every pound spent must be justified not just in terms of cost, but in terms of impact. Councils owe it to their residents to ensure that leadership, whether interim or permanent, delivers real value and drives meaningful progress.
