The Unitary Authority payment challenge
New research from 100 local authority finance leaders reveals that payments and income collection are the most underestimated challenge in LGR. Nearly 3 in 10 councils plan their payment infrastructure too late. Most discover the complexity only after it becomes a problem.
The scale of the problem
%
of councils map payment infrastructure mid-programme, post-transition, or not at all
%
cite vendor lock-in as the number one barrier to integrating legacy systems
%
of local authorities are failing to balance financial stability and citizen experience
%
say a single unified view of debt is the top measure of LGR success
Plan payments first. Everything else follows.
Why payments decide whether LGR succeeds
The complexity is always larger than the plan
LGR programmes face three simultaneous pressures: financial strain, a pace of delivery that leaves little room for error, and transformation demands that do not pause for a merger.
The systems you inherit shape the transition you get
When Somerset Council described implementing a new finance system on day one as "our single biggest avoidable mistake," they were not alone.
You can't improve what you haven't measured
Every council we spoke to in our focus groups was measuring improvement against a starting point they had never recorded. One authority reduced bank reconciliation from three full-time staff to four hours a week but only discovered the saving because they looked.
By the time it surfaces, it's too late to replan
The pattern across our research is consistent. Councils that plan their payment and income collection infrastructure early, before programme commitments are made, navigate LGR with significantly less friction. Those that leave it until mid-programme find themselves reworking decisions that have already been locked in.
The good news is that the savings from getting it right are real and measurable. Bank reconciliation going from three full-time staff to four hours a week. Merchant acquiring contract consolidation delivering significant annual savings. These outcomes are available to every new unitary authority, but only if the groundwork is laid early enough.
"You can't predict what isn't on your plan. But you can build the capability to discover it early and you can work with someone who has already seen it."
What the data reveals
%
of finance leaders say legacy IT dictates their transformation strategy, not the other way round
%
discover payment processing is more complex than anticipated; after it is too late to replan
%
cite lack of internal technical expertise as a primary barrier; equal to budget constraints
%
of councils in Northern Ireland flag vendor lock-in as a critical barrier; well above the 40% national average
Built for the complexity of LGR
Early programme integration
We join LGR programmes at the planning stage, mapping payment complexity before it becomes a constraint on other decisions.
Income consolidation across legacy councils
Unified income collection from day one, reducing the revenue leakage that comes from running parallel payment systems through transition.
Measurement before transition
We help councils establish financial baselines before the merger completes, so improvement in income collection can be proven, not just assumed.
Vendor-neutral integration
We work alongside your existing ERP and finance systems, not as a replacement, but as the payments layer that connects them.
About the research
Access PaySuite commissioned independent research among 100 local authority finance leaders across the UK. Fieldwork was conducted in 2025. The research included quantitative survey data, qualitative focus groups with councils that have already navigated LGR, and expert interviews with industry leaders from Socitm and techUK.
Planning for LGR?
Talk to our payments team now.
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