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“What are the key messages to pass on to local authorities/public sector agencies in order to truly get to the bottom of spend/budgets allocated in an areas, when times are tough for their own staff?”
I would say you need top-level authorisation from each local authority/public sector agency. As you say, staff time is tight and asking for spend-breakdown in just one area is time-consuming and not core business. If there is top-level direction about this it helps, so first step is convincing those partners of the benefit.