Local government reorganisation: a digital opportunity for transformation
Philip Craig
Local government reorganisation (LGR) is gathering pace across the UK. Councils are being challenged to rethink how they govern, commission, and deliver services. For technology leaders, this is not just a reshuffling of organisational charts—it’s a rare opportunity to embed modern digital infrastructure, robust data practices, and cyber resilience into the very fabric of local public services.
Learning from the past: what works and what doesn’t
Experience from previous reorganisations offers valuable lessons. When reforms simplify accountability and bring related services together at scale, they tend to deliver better outcomes and more sustainable finances.
In contrast, models that fragment responsibility or duplicate delivery often fail to achieve their aims. Unifying complementary services—such as housing with adult social care—can be highly effective, but overly complex joint arrangements may introduce unnecessary costs and risks.
Crucially, changing structures alone won’t resolve demand and cost pressures, especially in children’s and adults’ services. Successful LGR must be part of a broader transformation across health, care, and the wider public sector, with a focus on prevention, integration, and workforce reform.
Ten principles for successful local government reorganisation
To help local authorities and their technology partners navigate LGR, here are ten practical principles:
1. Focus on outcomes and safeguarding
Begin by designing around the outcomes you want for residents, especially the most vulnerable. Reorganisation is a unique opportunity to bring connected services under a single, accountable body, reducing handoffs and improving data sharing. Avoid models that disperse safeguarding responsibilities or rely on untested joint arrangements unless you can clearly demonstrate how risk, data, and accountability will be managed from day one.
Partner role: Collaborate to map cross-service journeys (e.g., homelessness to social care to housing) and define the minimum data needed to support these journeys.
2. Balance scale with localism
While there is a “sweet spot” for the size of unitary authorities, size alone doesn’t guarantee success. Large unitaries must invest in strong locality models with real budget delegation to avoid feeling remote, while smaller units need shared platforms to avoid fragility. From the outset, build locality governance, delegated budgets, and community-level insight into your operating model.
Partner role: Provide modular digital platforms that support both county-wide standards and local customisation.
3. Modernise platforms, don’t just transfer old systems
Treat LGR as an opportunity to modernise technology, not simply move existing systems. Use transition periods to rationalise core systems (ERP, CRM, etc.), establish a cloud landing zone, and adopt open data models. Evidence shows that the greatest savings come from consolidating leadership, estates, and platforms—so be bold in standardising rather than multiplying variants.
Partner role: Offer migration playbooks, target architectures, and commercial models that fund transformation from realised savings.
4. Build a secure, unified data spine
Integrated services rely on a common data platform with shared master data, privacy-by-design governance, and role-based access controls. Without this, performance and safeguarding risks can increase during transition. Establish this “data spine” early, spanning the new organisation and key partners such as the NHS and police.
Partner role: Quickly implement an interim integration layer (APIs, master data management, event bus) to support dual-running and reduce risk.
5. Prioritise cyber resilience from day one
Merging estates increases the attack surface, making cyber resilience a top priority. Focus on consolidating identities, improving endpoint security, segmenting networks, and ensuring robust monitoring. Embed cyber standards in all contracts and run security exercises before and after go-lives.
Partner role: Provide secure patterns for identity and device management during directory and domain mergers.
6. Align contracts with technology architecture
Contract harmonisation should go together with technology decisions. Choose strategic platforms first, then align contract changes to avoid paying twice. Decisions on council tax, TUPE, and contract rationalisation have significant financial consequences, so tie them to your technology roadmap.
Partner role: Manage transitions with a commercial “control tower” that sequences contract exits and renewals alongside technical cutovers.
7. Put social care and health integration at the centre
LGR alone won’t make social care sustainable. Real savings and improvements come from reforming care models, partnering with the NHS, and focusing on prevention and independence. Build joint governance, shared analytics, and integrated neighbourhood teams into your plans.
Partner role: Deliver shared care records, enable virtual wards, and provide workforce tools across council and NHS boundaries.
8. Integrate economic growth, planning, and transport
Coordinating growth, housing, and infrastructure decisions unlocks greater value. Integrate spatial planning, transport, and economic development at the largest sensible scale, with clear accountability.
Partner role: Offer integrated planning data platforms and digital engagement tools to support evidence-based decisions.
9. Sequence change to protect frontline services
Change should be phased to protect essential services. Start with immediate risk controls (finance, cyber, safeguarding), then move to dual-running, platform convergence, service redesign, and finally, continuous improvement. The biggest savings come when consolidation is followed by genuine transformation.
Partner role: Commit to measurable benefits and share performance dashboards with stakeholders.
10. Lead with transparency and local voice
Residents judge reorganisations by clarity and service quality. Simplified accountability is only a benefit if people can see who makes decisions and how to influence them. Invest in open performance reporting, publish service standards, and empower local partners with devolved budgets where possible.
Partner role: Deploy digital participation platforms and feedback mechanisms so communities can shape priorities and track progress.
A call to action
For councils embarking on LGR, the ultimate test is whether the changes will leave residents safer, services simpler, and the system more sustainable. The technology sector can help by providing repeatable architectures, pragmatic migration playbooks, and a relentless focus on data and cyber. When structure, scale, and service redesign align—with integration in care, shared platforms, and strong local voice—LGR can be the catalyst for a decade of better outcomes.
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