Business management consultants are set to be appointed by cash-strapped Southampton City Council to help implement its major cost-saving plan.

Abingdon-based firm Newton Europe is expected to become the local authority’s interim transformation partner for the next two months.

A decision on whether a partner is needed for the full implementation phase, which runs until the end of 2027/28, will be made at full council in September.

READ MORE: Southampton City Council needs to find £10m to sort finances

Last month, the city council announced the ‘adapt | grow | thrive’ organisational transformation programme.

Labour council leaders signed off on progressing 28 different projects, which are set to deliver £32.05million of savings next year, rising to £41.6million in 2028/29.

A briefing paper published ahead of the overview and scrutiny management committee meeting on Thursday, August 22, said Newton Europe carried out the diagnostic phase for the council.

It was envisaged that if transformation activities and financial savings of sufficient scale and impact were identified, the partner who provided this work would be appointed to do the subsequent implementation phase, the paper said.

Cabinet will decide on the appointment of Newton Europe as the interim transformation partner for September and October at a meeting on August 27.

The report that goes to full council in September will consider whether the local authority wishes to have a main transformation partner for the months and years that follow.

The transformation plan has to be submitted to Government by the end of this month as a condition of the minded-to approval for exceptional financial support (EFS).

Under this EFS, the council is allowed to use up to £121.6million of capital resources to cover revenue costs in 2024/25 through a ‘capitalisation direction’.

The financial support is broken down into £39.3million to offset the forecast 2024/25 budget deficit, £52million to cover a potential equal pay claim liability, £22.8million for transformation and restructuring costs and £7.5million for potential unforeseen events which cannot be covered by reserves.

The transformation programme is expected to require up to £10.26million of funding through the EFS in 2024/25.

Further resources will be needed in future years, with funding sources to be identified.