Devolution, local government reorganisation and the future of local services
Guest blog by Civica #LPSInnovation
Civica
Civica is a global GovTech champion focused on developing critical cloud-based software and services that are integral to the everyday lives of citizens around the world. www.civica.com
Equipping councils with the tools to build smarter, more connected communities
Empowering Local Government Through Digital Innovation
The release of the English Devolution White Paper represents a landmark moment in reshaping the governance landscape across England. With increased powers granted to local authorities and a renewed focus on regional decision-making, devolution and local government reorganisation (LGR) offer a historic opportunity to enhance public services and drive economic growth.
Civica, as a global GovTech champion and the UK’s leading public sector software provider, stands firmly behind this agenda, offering innovative digital solutions to help councils navigate this transformation and deliver more efficient, citizen-centric services. We believe technology can be a powerful enabler of change, strengthening local communities, improving social outcomes and fostering economic resilience.
Lee Perkins, CEO of Civica, affirms, “Devolution and local government reorganisation are not just about administrative efficiency; they are about people. It is a once-in-a-generation opportunity to modernise governance and reshape how public services work for communities. The key to unlocking its full potential lies in digital transformation. By leveraging smart technologies, councils can improve operational efficiency, enhance citizen engagement and ensure long-term financial resilience. At Civica, we are committed to being a trusted partner, equipping local authorities with the digital tools needed to succeed in this new era”.
The Role of Digital Transformation in Devolution and LGR
Local authorities across the UK face mounting pressures balancing stretched resources with increasing citizen expectations. A successful devolution strategy must be underpinned by digital maturity, ensuring that councils can operate at scale, deliver seamless public services and maintain financial resilience. However, the current digital landscape in the public sector presents several challenges:
Under-digitisation of services: Only 50% of UK public services have a digital channel, compared to Estonia’s 99% digital access rate. With citizens spending 1.5 weeks annually dealing with government bureaucracy, it is understandable that UK satisfaction with public digital services has dropped from 79% to 68% in the last decade.
Reliance on outdated technology: Maintaining legacy systems costs 3-4 times more than modern alternatives. While legacy estates make up 28% of central government, legacy levels in police forces and NHS trusts can reach up to 70% with a large proportion of local government workloads and data remaining on premise. Additionally, most public sector bodies lack comprehensive registers of legacy systems or quantification of the legacy risks.
Fragmented IT systems: Most public sector organisations have developed unique, non-reusable solutions, thus limiting efficiency and interoperability. For instance, NHS England alone uses around 50 CRM platforms, and a 2021 review found 190 different authorisation services and 44 accounts used across government.
Fragmented data: 70% of public sector organisations believe their data landscape is not well co-ordinated, interoperable or enables a unified source of truth, creating fragmentation that prevents application of AI, machine learning and advanced analytics.
Cybersecurity risks: In 2024, the National Cyber Security Centre reported a 50% rise in major cyber incidents, with their severity tripling. This underscores the urgency of secure, cloud-based solutions, as well as the need for plans to accelerate cyber transformation.
Lack of digital funding: Digital and data spending per full-time equivalent (FTE) is 78% lower than peer-set benchmarks, especially in local government, where funding shortfalls are most pronounced. Only 39% of councils have a dedicated budget for digital transformation, despite rising demand for online services.
To help address these challenges, Civica advocates for a bold digital strategy that prioritises:
Integrated cloud solutions: Cloud adoption is essential for cost-effective, scalable service delivery. Despite progress in central government, much of local government is still reliant on on-premise infrastructure. The expansion of cloud-first strategies will enable data sharing and automation across newly formed Strategic Authorities.
Data-driven decision making: As 70% of local authorities struggle with fragmented data, improving data management and analytics capabilities will be critical for evidence-based policymaking and streamlined service delivery.
Automation for productivity and efficiency: Councils should prioritise automation to enhance back-office operations and free up resources for frontline services. A staggering £45 billion per year, equivalent to 4-7% of public sector spending, could be saved and productivity benefits unlocked through the full potential digitisation of public sector services.
Workforce upskilling in digital capabilities: With digital and data roles making up only 2% of local government staff (versus a 4% benchmark), investment in skills and leadership will be key to driving long-term success.
Citizens Matter Most
Prioritising the above initiatives directly aligns with devolution goals to create a more efficient, responsive, resilient and accountable local government structure. Digital transformation allows local government to deliver more personalised services, automate routine tasks and offer 24/7 access to services, making it easier for citizens to interact with their local authorities. Digitisation reduces costs, streamlines operations, increases security and allows resources to be allocated more effectively, improving outcomes for citizens. Data analytics further supports informed decision-making, enabling local authorities to track performance, predict needs and craft policies that better address local community demands.
Beyond operational efficiency, digitisation also promotes transparency and accountability in government, allowing citizens to easily access information, give feedback and engage in decision-making, strengthening trust between local authorities and communities.
As local authorities gain more powers and responsibilities, the accelerated transition to a more digitally advanced public sector can enable them to function more efficiently, transparently and inclusively. What matters most is the real-world impact they have on people and communities.
Civica’s Commitment to Supporting Local Government
Civica, the UK’s leading provider of public sector software and a global GovTech champion, has been delivering critical digital solutions for over 20 years. We have long understood the power of technology to transform public services, and now, with government recognising this potential, we have a greater opportunity to work together to drive meaningful change. It’s time to turn ambition into action and ensure technology delivers maximum value for citizens.
For example, achieving system integration and effectiveness through Civica’s suite of cloud products, which are designed to unify systems, ensure operational scalability and drive productivity. Additionally, our advanced solutions for data-enabled governance, combined with long-standing relationships with 100% of UK councils, make Civica an ideal partner to navigate the challenges and opportunities of an evolving public sector.
Lee Perkins concludes, “This is more than just a shift in governance; it’s a chance to reimagine how public services are delivered. With the right technology, collaboration and leadership, we can build smarter, more connected communities. Civica is committed to ensuring that local authorities have the tools they need to thrive in a devolved future”.
By embracing digital transformation and fostering collaboration across regional authorities, we can ensure that devolution and LGR deliver lasting benefits for councils, communities and citizens alike.
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Alison has background in International Trade & Investment, with experience in the public, private and third sector, advising on international trade, new markets, inward investment and working closely with UK cities and regions around investment into innovation and partnerships and technology. Prior to joining techUK, she has her own consulting business and was Head of Global Investment with the Connected Places Catapult. This role had a focus on FDI around the built environment and mobility, working across NetZero mobility projects in the UK and globally. She worked closely with the Innovation Districts Group, to foster and network of knowledge sharing and helped set up the Freeport Innovation Network, to foster innovation in the context of freeports with a focus on investment.
She spent six years living and working in the Middle East, with the Department for Business and Trade. Based first in Oman, leading on a number of sectors, from Education to Infrastructure, then based in the UAE, setting up the Technology and Smart Cities sector, with a core focus on AI and Fintech.
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Programme Manager, Local Public Services and Nations and Regions, techUK
Ileana Lupsa
Programme Manager, Local Public Services and Nations and Regions, techUK
Ileana Lupsa is the Programme Manager for Local Public Services and Nations and Regions, at techUK.
Ileana studied electronics, telecommunications and IT as an undergraduate, followed by an MSc in engineering and project management at Coventry University.
She refined her programme management expertise through her most recent roles working in the automotive industry.
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Programme Marketing Assistant for Public Sector Markets, techUK
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Georgina works with suppliers that are active or looking to break into the market as well as with local public services to create the conditions for meaningful transformation. techUK regularly bring together local public services and supplier community to horizon scan and explore how the technologies of today and tomorrow can help solve some of the most pressing problems our communities face and improve outcomes for our people and places.
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