The Budget Challenge for Councils in 2025

Across the UK, councils are facing mounting pressure to deliver new school buildings that meet rising pupil numbers, updated Department for Education (DfE) standards, and ambitious sustainability goals. At the same time, capital budgets are stretched thin, construction costs have surged by more than 20% since 2020, and the public rightly demands high-quality facilities that support learning and community use.

The question is simple but difficult: How can councils save money on school design and construction, without compromising on safety, compliance, or long-term value?

As an award-winning architectural practice with deep expertise in delivering school projects, we’ve identified the strategies that consistently help councils and education trusts reduce costs while ensuring quality outcomes. This guide will walk you through them in detail, offering practical, evidence-based advice that councils can act on immediately.

1. Start with the Right Brief

A well-defined project brief is the single most cost-saving step a council can take. Without clarity from the outset, even the best contractors and architects can end up delivering a building that is over budget, misaligned with user needs, or unnecessarily complex.

• Common pitfall: Councils often begin with a vague or overly ambitious brief, leading to design iterations, scope creep, and wasted fees.

• Solution: Invest time upfront in stakeholder engagement—headteachers, governors, facilities managers, SEN specialists—and translate their input into a clear, prioritised brief. Use structured workshops and benchmarking data to make decisions evidence-led.

• Outcome: A concise brief avoids costly redesigns later and ensures the final scheme aligns with curriculum and community needs. In one project, a council that invested an additional two weeks in the briefing stage reduced subsequent design revisions by 40%, saving over £120,000 in professional fees.

2. Leverage Standardised Design Frameworks

The DfE has produced design standards such as the Output Specification 2021, which define spatial requirements, daylight levels, ventilation targets, and more. Councils that align to these frameworks avoid the trap of overdesign.

• Why it saves money: Starting from these frameworks ensures compliance, speeds up design development, and reduces consultant hours spent reinventing the wheel.

• How we help: We adapt these baseline standards intelligently, optimising layouts for site-specific constraints while keeping the building efficient.

  
  

Additionally, standardised frameworks give councils a strong position during tendering, since bidders understand the parameters clearly. This avoids inflated costs caused by misinterpretation.

3. Value Engineering- Done the Right Way

Too often, “value engineering” becomes a euphemism for cutting corners. But when applied properly, it’s a cost-optimisation process that enhances long-term value.

• Examples of smart savings:

  • Substituting expensive façade systems with high-performance modular cladding.

  • Simplifying structural grids to standard spans, reducing steel tonnage.

  • Choosing robust, low-maintenance finishes (e.g., linoleum vs. vinyl) to lower lifecycle costs.

  • Replacing complex roof forms with efficient, simpler geometries that still deliver good daylighting.

    
    

• Golden rule: Don’t cut quality in high-impact areas like acoustics, natural light, and circulation—these directly affect teaching outcomes and long-term user satisfaction.

• Done right, value engineering means councils spend less upfront and significantly less over the building’s lifecycle.

  
  

4. Embrace Modern Methods of Construction (MMC)

MMC and modular design are revolutionising school building and are increasingly encouraged by central government.

• Why MMC works for councils:

  • Faster programmes: schools can open a year earlier, reducing temporary accommodation costs.

  • Lower prelims and labour costs due to factory-controlled environments.

  • Predictable outcomes with fewer defects and snags.

    
    

• Our expertise: We’ve delivered modular SEN schools and classroom blocks that met budget constraints while achieving BREEAM Very Good.

• Added benefit: MMC projects often attract favourable funding or policy support from the DfE, as they align with wider industry goals.

Pro tip: Pair MMC with digital tools like BIM (Building Information Modelling) to visualise cost and performance impacts early, ensuring fewer surprises during construction.

5. Maximise Funding Streams Beyond Core Budgets

Many councils overlook complementary funding sources that can offset capital expenditure.

• Condition Improvement Fund (CIF) – available to academies and trusts, but councils can often partner with MATs to unlock it.

• Public Sector Decarbonisation Scheme (PSDS) – funds upgrades like heat pumps and solar panels.

• Levelling Up Fund (LUF) – applicable where projects tie into wider regeneration goals.

• Salix Finance loans – offer interest-free borrowing for energy-efficiency improvements.

  
  

At Grayling Thomas, we’ve supported multiple clients with bid writing and feasibility studies that strengthened their applications—often securing six- or seven-figure additional funds. A council that integrates multiple streams can reduce reliance on core budgets significantly

6. Design for Energy Efficiency = Operational Savings

Capital costs aren’t the only financial concern. Councils must consider the total cost of ownership. Over 30 years, operational expenses can outweigh initial construction budgets.

• Energy-efficient design measures:

  • Passive solar orientation to reduce heating bills.

  • Natural ventilation strategies instead of costly mechanical systems.

  • Photovoltaics sized for actual demand curves.

  • LED lighting with smart controls to reduce wasted energy.

  
  

7. Procurement Strategies That Avoid Overpaying

Choosing the right procurement route is critical for balancing cost certainty and design quality.

• Traditional route: May give design control but can lead to adversarial contracts and cost inflation.

• Design & Build: Offers price certainty but risks quality if not carefully specified.

• Framework agreements: Councils benefit from pre-negotiated rates and vetted contractors.

• Best practice: Use a two-stage Design & Build process with early contractor involvement—allowing costs to be benchmarked while preserving design intent. This approach has reduced tender-stage inflation by up to 15% on comparable projects.

  
  

8. Future-Proofing = Reduced Retrofit Costs

Cutting costs today only to face major retrofit bills tomorrow is a false economy.

• Smart strategies:

  • Oversize plant rooms slightly for future upgrades.

  • Design flexible spaces that can adapt to curriculum changes.

  • Use modular extensions for phased growth.

  • Specify adaptable MEP systems that can accommodate technology upgrades.

• Council benefit: Schools remain compliant and fit for purpose long-term, avoiding disruptive (and expensive) rebuilds.

  
  

Future-proofing also enhances asset value, giving councils stronger positions for future funding bids and community partnerships.

9. Community Engagement Prevents Delays

Public opposition can derail even well-funded projects, adding months of delay and tens of thousands in legal or redesign costs.

• Solution: Engage local residents early through consultations, visualisations, and workshops.

• Benefit: Smoother planning approvals, stronger community ownership, and fewer objections. Community-led design processes often generate ideas that improve functionality and reduce future retrofit needs.

  
  

Our practice frequently facilitates such engagement, ensuring council projects move forward on schedule and on budget.

10. Partner with an Experienced Architectural Practice

Finally, the most effective way to save money is to work with architects who have already navigated these challenges successfully.

• Track record: We’ve delivered projects with Hertsmere Council, West Berkshire Council, and over 30 schools across the UK.

• Awards: Recognised nationally for innovation in SEN and educational architecture.

• Approach: Collaborative, pragmatic, and always mindful of budgets.

  
  

Councils that partner with Grayling Thomas don’t just save money—they unlock long-term value, trust, and community impact. By choosing the right partner, councils reduce risk, gain access to funding knowledge, and achieve smoother project delivery.

Conclusion: Smarter, Not Cheaper

Cost-saving in school architecture isn’t about stripping back quality. It’s about smarter design, strategic procurement, and long-term thinking. Councils who adopt these strategies will deliver modern, inspiring, and sustainable schools without breaking their budgets.

Ready to explore how Grayling Thomas can help your council achieve more with less? Get in touch today for a free consultation or download our full council cost-saving checklist.