Institute for Governance report ‘Reorganising district councils and local public services, challenges and options’ suggests that merger of districts may well create ‘a postcode lottery for delivering key services’.
The Institute for Government writes:
The report ‘Reorganising district councils and local public services: Challenges and options’… focuses on the challenges and options facing local leaders as they aggregate district council functions onto a new unitary footprint. The report makes recommendations to help local leaders and central government minimise disruption and maximise the benefits of LGR.
Local government needs to set the preconditions for success in the embedding and transformation stages of LGR.
- Decide which services to prioritise for transformation efforts amid capacity constraints.
Given limited capacity, leaders must make strategic choices about
how to sequence the embedding and transformation of services. These decisions involve balancing multiple factors. Many district-level services are highly visible and directly influence public perceptions of council performance – so maintaining service standards is essential. Expanding service delivery across a wider geographic footprint may risk alienating some users, and leaders must ensure services are distributed fairly and equitably. The timing of transformation is also key: some changes could happen concurrently with reorganisation, but the majority will likely have to follow later.
- Tailor your transformation strategy around the chosen geographic footprint.
The scale and nature of the challenges facing local leaders will be shaped by the final geographic footprint. Transformation plans must be tailored to the specific context – whether district councils are being merged into an existing authority (for example a county or unitary council), or a county council is being split. Each scenario presents distinct operational and strategic implications. For example, the delivery risks associated with consolidating waste collection services differ significantly from those involved in dividing social care across multiple smaller geographies –each requiring a tailored strategic approach for the area in question. - Be mindful of service-specific challenges. Each service area presents unique complexities.
For example, legal requirements often necessitate early decisions on Council Tax harmonisation, which can be politically sensitive. Housing services involve intricate administrative tasks, such as redistributing assets and waiting lists, and establishing a unified planning function can be time-consuming. Waste management, due to its visibility, requires particular attention to continuity and quality. - Establish robust operational structures.
Leaders must set up effective operational frameworks and project teams early in the process. This includes developing a new business model, appointing senior officers promptly, and ensuring an experienced senior responsible owner for LGR is supported by a capable programme management office. External expertise may be required both before and after vesting day to support delivery. - Strengthen enabling functions.
Key enabling functions must not be overlooked. Strong back-office support is critical, particularly well-resourced HR teams and integrated ICT platforms, which are essential for managing change and ensuring smooth operations. - Engage and support staff throughout the process.
Staff are councils’ most valuable asset. Leaders must communicate openly and transparently and engage actively with teams. They should be mindful of potential cultural clashes as organisations merge, and take steps to prevent disengagement and forge a unified workforce across the new unitary authority. - Foster early and inclusive relationships.
Proactive engagement – both operational and strategic – is essential from the outset. This includes meaningful communication with neighbouring councils and the public, who must have opportunities to contribute to the transformation process through consultations and surveys. Leaders should set clear expectations and foster open, transparent communication to build trust and ensure alignment. - Embed innovation through contracting decisions.
As areas assess their contracting options for the services that district councils previously delivered, newly formed unitary authorities and those expanding to include new areas have a unique opportunity to design systems that promote continuous improvement and innovation. By embedding these mechanisms from the beginning, councils can create a culture of learning and adaptability that supports long-term success.
Central government needs to learn the lessons from earlier LGR rounds to support the sector through this change.
- Provide clear support and guidance.
Central government should develop and disseminate practical guidance on transformational delivery, including how to exploit emerging technologies to streamline services. Any such guidance must be realistic about the timetable for implementation of the ‘invest to save’ project ministers have asked local leaders to consider as part of their LGR proposals. - Assess and strengthen central government capacity.
Central government should critically self-asses its capacity to manage simultaneous LGR processes across multiple regions alongside other major initiatives affecting local communities such as the restructuring of the NHS and reforms to children’s social care provision. It should identify and address any skills gaps – particularly in programme management – through recruitment or external support, or adjust the reorganisation timetable accordingly. - Leverage sectoral experience and expertise.
Wholesale LGR has not happened in England for more than 30 years. This is a step change from recent LGR rounds. The government has already taken a welcome step by establishing an independent panel of local government experts to support policy development, guide implementation, manage risks and provide constructive challenge strengthen delivery. To maximise the panel’s impact, it should be encouraged to engage widely across the sector to ensure lessons from past reforms are not overlooked. For example, engaging with officials involved in Northern Ireland’s 2005 council restructuring could offer valuable insights into the broader implications for wholesale LGR. - Capture and learn lessons from early movers by establishing formal review mechanisms to learn from the devolution priority programme areas and from Surrey, who are working to a faster timetable. Insights from early implementation can inform and improve approaches in regions scheduled for later reorganisation.
