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Navigating the future: The dual challenge of local Government reorganisation and devolution

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The UK Government has embarked on an ambitious new phase of local government reorganisation, aiming to simplify structures, enhance efficiency, and align local governance with devolved powers. However, implementing reorganisation while establishing new strategic authorities presents significant challenges. Success requires local and central government to carefully navigate this period of parallel delivery, ensuring that changes improve rather than hinder local service delivery and democratic accountability.

This article draws on insights from our report with the Institute for Government - Dual Delivery: How can areas successfully reorganise local government and implement devolution at the same time? [ 1223 kb ] - which explores the complexities of this process and provides recommendations for a successful transition.

The case for change

The Government’s push for reorganisation is driven by the need for service transformation, financial sustainability, clearer accountability, and the creation of more substantial local governance structures that support devolution. Unitary authorities are expected to streamline public service delivery by reducing duplication and improving integration. Combining authorities can lead to cost savings through economies of scale and better resource allocation. A unitary system simplifies decision-making and offers residents a clearer line of accountability. Strong local governance structures are fundamental to effective devolution, ensuring new regional bodies can drive economic and social progress.

While these objectives are commendable, executing reorganisation alongside devolution introduces complexities. Without careful planning, these changes risk service disruption, political tensions, and financial burdens. 

Lessons from the past  

Previous waves of local government reorganisation have yielded mixed results. While some councils achieved efficiencies and service improvements, others encountered cost overruns and operational inefficiencies due to poor planning. Strong collaborative leadership has proven essential, with successful transitions requiring close cooperation between outgoing and incoming authorities.  
The right scale of governance must balance efficiency with local responsiveness. Even after consolidation, councils must address long-term financial challenges, particularly in high-demand services such as social care and housing. Transparent public and stakeholder engagement is key to fostering trust and ensuring a smoother transition. 

Strategic considerations for dual delivery  

For local leaders, implementing reorganisation and devolution simultaneously requires a strategic approach. Developing a clear and unified vision that is evidence-based and aligned with economic and social priorities will secure stakeholder support and prevent duplication. Political and organisational stability is critical, necessitating strong relationships between local political leaders, civil servants, and the central government. Mechanisms such as joint delivery teams and oversight forums can ensure coordinated decision-making. 

Service continuity must be prioritised while transformation goals remain in focus. Dedicated programme management teams should oversee key workstreams to ensure alignment between reorganisation and devolution efforts. Structural change must be aligned with financial resilience, requiring rigorous financial planning to ensure that cost savings are realistic and that transitional costs are accounted for. Clear funding commitments from the Government will help mitigate financial risks. 

Managing workforce capacity effectively is crucial, as staff uncertainty during reorganisation can lead to recruitment and retention challenges. Proactively engaging employees and providing clarity on job roles and career progression can help ease this transition. Public engagement should not be treated as a formality. Transparent and meaningful consultation processes will be critical to securing public support. Community-led approaches, such as citizens’ assemblies and participatory budgeting, can enhance democratic legitimacy and responsiveness. 

The role of central government  

For dual delivery to succeed, the Government must provide clear direction, support, and oversight. A well-structured implementation roadmap will define clear timelines and milestones, providing certainty for local leaders and preventing delays.  

Adequate resources must be allocated transparently, ensuring that resources align with transition costs. Monitoring and evaluating progress through independent oversight mechanisms like National Audit Office reviews will help track value for money and service outcomes. While a national framework is necessary, local areas must retain the flexibility to shape their governance structures to suit regional needs. 

Overall, the simultaneous execution of local government reorganisation and devolution presents both a significant opportunity and a challenge. If managed effectively, these reforms could enhance service efficiency, boost economic growth, and strengthen local democracy. However, failure to navigate these complexities could lead to disruption, financial instability, and a loss of public trust. To succeed, leaders must take a strategic, evidence-based approach, while the Government must provide the necessary guidance and resources to ensure a smooth transition. Now is the time for collaborative leadership, robust planning, and a clear vision for the future of local governance in England. 

Access the full report - Dual Delivery: How can areas successfully reorganise local government and implement devolution at the same time [ 1223 kb ] for a deeper analysis and practical recommendations.