Local government reorganisation has been a policy of consecutive governments and it's expected to continue under Labour. Paul Dossett and Guy Clifton share our report on lessons learned from the eight most recently created unitary authorities during value for money audits.
Local government reorganisation (LGR) has taken place at various times in recent decades, as different governments and councils seek to transform service delivery while generating savings and efficiencies. LGR remains a policy option for the new Government, to help authorities manage the financial difficulties.
LGR is complex, time consuming, and provides some significant challenges, which have included:
- a relatively short implementation timescale of less than a year
- the pressures that come from delivering business as usual services by the existing councils while implementing LGR in parallel
- the failure to ensure the preparation of financial statements that can be audited effectively to provide assurance to the successor(s)
- the lack of ownership of some demising councils for the approved unitary model and a shared business case
- the need to undertake financial and service planning for the new unitary when many senior officers aren't in role in a timely way to make key decisions.
It takes several years to fully realise the benefits of LGR and it requires sustained commitment from senior stakeholders to deliver. Most LGR business cases plan at least five years for post-vesting day transformation. There are inherent risks in any LGR implementation, and new unitary councils will have significant decisions to take.
Cross-cutting themes: transformation and capacity
We've seen in our work the scale of complexity and the volume of requirements during the transition period to the new unitary council, with a focus on operating as safe and legal from day one. This too-often means that the shadow arrangements in place for the new councils haven't been able to commence the required work on transformation prior to the new unitaries being created. The implementation timescale needs to be more realistic.
Capacity and capability are critical, and councils need to resource change appropriately. LGR requires significant staff time and resources at the same time as councils are delivering business as usual services, and also requires different skills. The level of resource required for successful implementation shouldn't be underestimated.
Our local government reorganisation report
This report explains the most relevant learnings for both the government and for other councils considering LGR, and is structured around early successes before and during transition, as well as post-transition. It looks at learning in financial sustainability, governance and effectiveness, economy, and efficiency. The insight includes recommendations both to local authorities and central government, and you'll also find a good-practice checklist.
For more insight and guidance, get in touch with Paul Dossett or Guy Clifton.
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