According to a new Access PaySuite study, 96% of local authority finance leaders reported they are failing to successfully balance financial stability and citizen experience.
It’s no secret that LGR is a major structural reorganisation, one of the largest digital transformation projects facing the public sector, but it’s also an opportunity to solve this balancing act and create a once-in-a-generation reset.
That’s why payments technology provider Access PaySuite commissioned research of 100 finance leaders within local authorities across the UK to understand how prepared they are to plan, implement and measure the success of LGR digital transformation.
In a new series exploring the digital transformation at the heart of LGR, Access PaySuite has compiled new research, expert industry insights, focus groups and unitary authority case studies to help guide local authorities through the programme.
How do you plan for LGR pressures?
For councils planning their LGR transformation programme, the risk is in what you haven’t mapped yet.
Planning for LGR transformation is made more difficult by the pressures already facing the sector and the required pace of delivery.
- Financial pressure: Transformation is financially driven, but the invisible costs are rarely measured and hurt the most. 36% of LA finance leaders said that budgetary and funding constraints were the primary barrier to local authority reorganisation projects.
- Reorganisation without choice: The pace and political pressure of LGR is unlike anything councils have faced previously. One in four reported that aggressive or unrealistic programme timelines were a barrier to integrating systems during a transformation project.
- An ongoing transformation: LGR is a multi-year programme, not a one-off project. Day one is a challenge in itself, but it’s just the beginning.
Previously, these pressures could be mitigated. Budgetary or capacity constraints could be smoothed out with more time, pressure to deliver on a strict deadline could be managed with additional resources or more internal capacity, and most projects have a finish line followed by a recovery period.
In the case of LGR, however, there’s no money to throw at it, no control over pace, and no clear end point to recover after. None of the usual safety valves are available and this combination of constraints is unprecedented.
Then there’s the complexity of the project itself. Andrew Rogers, an associate director of Socitm with more than three decades of experience supporting local authorities on digital transformation projects explains:
A typical region could have 11 councils and each council might have 200 applications each with significant overlap between them. However the systems used by a typical district council will be very different to those in place with a county council. The key risk is being operational on day one when the environment you’re coming from is so complicated.
How do authorities achieve day one compliance?
For most local authorities going through LGR, safe and legal day one status is the immediate focus.
Big ticket items like social care systems through to HR, payments and payroll systems must be safe and legal for day one in April 2028.
Being able to pay staff and collect council tax are real-life, human challenges which impact both citizens and staff alike.
Our survey revealed that maintaining performance in statutory service delivery such as social care and waste management was a key success metric for 38% of finance leaders.
How do councils seize the strategic opportunities of LGR?
While day one is the first objective, it’s vital that local authority planning looks beyond immediate compliance requirements to view LGR as a strategic opportunity to improve service delivery and experiences for citizens.
Georgina Maratheftis, Associate Director, Local Public Services, techUK, has been working closely with the Local Government Association and local authority decision-makers to guide them through LGR. She said:
This is such a big management change and there’s a focus on being safe and legal on day one, but the risk is that the citizen is forgotten. As you go through the LGR process the citizen needs to be at the heart of the redesign and reorganisation. LGR is the opportunity - and should become the blueprint - for us to create the council of the future.
Our focus groups revealed a common theme between councils who have successfully navigated reorganisation in the past.
You can't predict what isn't on your plan. But you can build the capability to discover it early.
Early conversations with departments and service leads, as well as suppliers, means you will access a different view of your challenges and challenge your thinking.
Councils are being held hostage by their own systems at the exact moment they need to break free. The councils that will look back on April 2028 as a turning point are the ones treating it as a design brief, not a deadline.
What is Local Government Reorganisation (LGR)?
Local Government Reorganisation (LGR) is the process of restructuring local authorities, often by creating larger unitary councils that combine the responsibilities of district and county councils. The goal is to improve efficiency, reduce duplication, and create more financially sustainable organisations.
What are the biggest challenges councils face during LGR?
According to Access PaySuite research, key challenges include budget and funding constraints, aggressive programme timelines, system integration complexity, and the need to maintain service delivery while undertaking significant organisational change.
What does successful LGR look like?
Success can mean different things to different authorities, but common measures include maintaining statutory service delivery, improving operational efficiency, delivering financial stability, enhancing citizen experiences, and creating a foundation for future digital transformation.
How many systems typically need to be integrated during LGR?
The number varies by authority, but experts suggest that a region undergoing reorganisation may involve multiple councils using hundreds of applications, many with overlapping functionality. Managing this complexity is one of the most significant aspects of LGR planning.
Why is citizen experience important during Local Government Reorganisation?
Residents are directly affected by council services every day. If citizen needs are overlooked during reorganisation, efficiencies may come at the expense of service quality. Successful LGR programmes place citizens at the heart of service redesign to create better outcomes alongside operational improvements.