Building a business case for modernising the Unitary payment experience

• How LGR is changing unitary payments
• Key drivers for a payment modernisation business case
• 5 actionable ways to improve the unitary payment experience
• How to measure the results
• Need help navigating LGR?
• FAQs

Local Government Reorganisation (LGR) replaces two-tier councils, where county and district councils share services, with unitary authorities that run all services for an area. When councils merge, their payment infrastructure merges with them. That usually means inheriting separate payment gateways, income management systems that do not talk to each other, and resident payment journeys that differ from one council to the next.

The timetable is in flux. In September 2026 the government paused most LGR decisions for review, withdrawing decisions for four areas and pausing 14 others. Surrey remains on its existing statutory path. The government's stated policy still points towards unitary local government, so councils should plan for a unitary future while the review runs. Work on payment data, contracts and systems pays off whichever structure emerges, which makes it the sensible place to start.

Read more about the LGR timetable in our guide to local government reorganisation: everything you need to know.

Business cases tend to win when they answer the finance director's question first. Four drivers usually carry the most weight.

Cost reduction and efficiency

Consolidating vendor contracts, reducing transaction fees and clearing manual reconciliation backlogs across legacy platforms all lower the cost of collecting income.

Improved citizen payment experience

Consistent, accessible options across mobile, web, phone and Direct Debit reduce abandoned payments and the frustration that comes with them.

Operational resilience and continuity

Reliable fallback payment routes keep income flowing while systems and teams move over during a transition.

Data and financial visibility

A single dashboard gives real-time visibility over cash flow, revenue recovery and debt, in place of several reports that never quite match.

1. Unify payment channels

Give residents a smooth move between online self-service, automated phone payments and recurring Direct Debit, so nobody has to start again when they switch channel.

2. Introduce open banking

Open banking can lower the cost of high-volume payments such as Council Tax and speed up settlement of funds.

3. Reduce payment friction

Replace paper-heavy processes with mobile-responsive checkout that cuts drop-off at the final step.

4. Automate income management

Match payments automatically to ERP and CRM records, so back-office teams spend less time on admin.

5. Offer flexible payment options

Flexible payment schedules and self-service portals help vulnerable residents keep up with payments, which reduces arrears before they build.

Agree these measures before go-live and record today's figures as the baseline.

• Cost per transaction: Compare the charges from each existing gateway with the rate on a single unified platform.
• FTE hours saved: Track the time freed up by no longer reconciling across several dashboards.
• Reduction in arrears: Measure how long income takes to reach the council. For example, collection times can move from days to hours.
• Citizen satisfaction: Track resident feedback and complaints about council digital services.

This article covered why payment experience matters during a council merger, the drivers behind a business case, five practical steps and the measures that prove the result.

Access PaySuite works with local authorities navigating LGR