Cost of Not Engaging: reducing financial risk with public participation

Exploring the costs associated with local authorities not engaging the public in a participatory way

Involve and Ipsos have surfaced insights from participants of the Net Zero Living Programme to show how early-stage, participatory engagement can reduce financial risk later on in a project.

The report starts by examining two broad approaches. The first is statutory engagement which tends to be more traditional, one-way consultation once an pathway is already agreed. The second is participatory engagement which brings communities into the process a lot earlier, to help shape options and consider local needs and trade-offs.

Both approaches have costs attached to them. Participatory work can feel like an added upfront expense. However, findings from the Programme show that relying on statutory engagement alone carries a greater risk of unplanned costs later on, especially if decisions face backlash or projects don’t work for the people they are meant to serve.

The research highlights “cost points” or potential areas of financial risk. This could where there is low community awareness. It might be where finances are needed for legal action or perhaps where a council officer’s time has to be diverted towards reactive work. Or it might be because schemes are simply not being used because they don’t fit people’s needs.

Case studies from the Programme illustrate the potential financial consequences of not engaging communities at the right stages. Examples include an energy efficiency programme that cost a local authority £250,000 but they could only recover £60,000 because uptake was so low. Another explains how one council had to spend £300,000 in legal defence costs because of local challenge to a service change.

So while participatory engagement may require upfront investment, this research shows that it can minimise unplanned costs and help local people support, and adopt, new ideas.

Key findings

• Statutory, one-way consultations often take place too late in the planning process, tend not to reach all residents, and can be dominated by objectors. This makes it harder to surface local community needs and reach agreements around new projects.
• Investing in participatory engagement minimises the risk of further costs down the line, such as legal costs, officer rework, reputational damage, or low uptake.
• Case studies from the research suggest that co-design and early engagement can strengthen partnerships and secure local support from communities.