Beyond reorganisation: reinventing local government

Julia Brennan, Domain Director of Local Government, Housing & Communities #LPSInnovation2026

The sector understands that Local Government Reorganisation presents a once-in-a-generation opportunity. But structural change alone will not transform local government for the better. What matters is how councils use that opportunity—and whether they organise themselves around the needs of people and place, rather than simply recreating existing services within new boundaries.

Reorganisation gives councils a rare chance to step back and reconsider how local government could fundamentally work: connecting services more effectively, developing a deeper understanding of communities, intervening earlier and creating a more joined-up experience for residents.

That means thinking beyond traditional organisational and service boundaries.

People do not experience their lives through departmental structures. Housing, health, employment, financial vulnerability, caring responsibilities and community safety are deeply interconnected. Yet the public services designed to support people are often organised and delivered frustratingly in isolation from one another.

This is why the shift from service-led to place-led local government matters. It starts not with existing structures, but with the needs, strengths and characteristics of a place and the people who live there.

Technology will be an important enabler of that shift. Better-connected data and systems can help councils identify patterns of need earlier, join up insight across services and move towards more preventative models of support. Used well, AI can strengthen organisational intelligence, reduce administrative burdens and give frontline teams more time to focus on people.

But greater technological capability must be matched by stronger governance.

As councils connect and interpret information across services, they will need to confront important questions. What information should be shared? Where do the legal and ethical boundaries lie? How will AI-supported decisions be explained? Where must human oversight remain? And who is accountable when technology gets something wrong?

These questions cannot be left until after implementation, when poor decisions or weak safeguards may already have caused issues. Governance must be designed in from the outset, alongside high-quality data, clear accountability, workforce capability and service redesign.

This will also require a different relationship between councils and technology suppliers.

Suppliers need to listen before proposing solutions, understand the complexity of individual places and be honest about what technology can—and cannot—do. During reorganisation, needs will evolve, while existing systems, contracts and supplier relationships may need to change. Navigating that successfully will require flexibility, openness and a willingness to work through uncertainty together.

Councils, in turn, need to be clear about the problems they are trying to solve, the outcomes they want to achieve and their longer-term direction of travel. Earlier and more open conversations will allow councils and suppliers to challenge assumptions, build on what already works and develop solutions around genuine need.

Residents must also be part of that conversation. They should be able to understand where AI is being used, why it is being used and how it is intended to improve services and outcomes.

Public trust will therefore be one of the defining measures of successful AI adoption in local government. People are more likely to have confidence in AI-enabled services when their use is transparent, understandable, locally accountable and visibly connected to improving their lives.

The future role of AI in local government should not be about replacing human interaction. Its value should be judged by whether it reduces the friction people experience when engaging with public services—and whether it gives frontline teams better insight, more time and greater capacity to support them.

The starting question for councils should not be: “Where can we deploy AI?”

It should be: “What are we trying to improve, and what needs to change around the technology to make that possible safely and sustainably?”

That distinction is crucial. AI cannot simply be bolted onto yesterday’s operating model. Successful adoption will depend on councils bringing together technology, data, governance, workforce capability, service redesign and public trust as part of a coherent approach to transformation.

Reorganisation may provide the catalyst, and technology some of the tools, but neither will determine the outcome on its own. The next generation of local government will be defined by how intelligently, responsibly and collaboratively councils use this opportunity to deliver better outcomes for the people and places they serve.

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