Working smarter

Chapter 2

Local Government Reorganisation: Opportunity through change

Financial resilience: doing more with less

The financial case for LGR has come under scrutiny. A 2024 analysis by the County Councils Network warned that without the right approach, reorganisation could cost taxpayers over £850 million. But that’s not the whole story.

When done strategically, LGR can unlock significant savings – not just through economies of scale, but by reducing duplication, consolidating contracts, and modernising outdated systems. For example, one council working with OneAdvanced during LGR reported a 30% reduction in manual processing time within the first year – highlighting the impact of well-matched technology and phased planning.

The key is to think beyond short-term cuts and focus on long-term value. Councils undergoing LGR must anticipate future service demands, inflationary pressures, and funding changes. By investing in finance systems, spend analytics, and scenario modelling tools, leaders can explore different outcomes, test assumptions, and make informed decisions that balance feasibility with sustainability.

Financial resilience also depends on how well councils align their resources with strategic priorities. That means building flexibility into budgets, improving visibility across departments, and ensuring that financial decisions are informed by accurate, timely data. With the right tools and planning, councils can move from reactive cost-cutting to proactive value creation.

Local Government Reorganisation: Opportunity through change

Streamlining services:

from complexity to clarity

Bringing services and systems together presents councils with a clear opportunity to drive efficiency and improve outcomes. Shared service models help eliminate duplication and enable better use of limited resources – particularly important in the face of rising demand and workforce pressures. When departments operate on unified platforms, processes become more consistent, collaboration improves, and service delivery becomes more responsive. These changes not only support operational resilience but also position councils to meet the evolving needs of their communities with greater confidence and agility.

This is particularly important in two-tier areas, where residents often don’t know whether to contact the district or the county for housing, waste, or social care. That confusion leads to inefficiencies, duplication, and frustration – precisely the kinds of issues that consolidation and unified service models are designed to resolve. By moving to a unitary model, councils can create a

single point of accountability – making it easier for residents to access services and for staff to deliver them. But this isn’t just about reorganising structures or updating job titles. It’s about rethinking workflows, removing silos, and designing services around real-life needs.

Techology plays a pivotal role here. AI-powered platforms can automate routine tasks, freeing up staff to focus on complex cases. Cloud-based systems enable real-time collaboration across departments. And integrated data platforms provide a 360-degree view of residents – helping councils to intervene earlier, target resources more effectively, and measure impact with confidence.

As Tony Colson of Socitm noted at the 2025 OneAdvanced Government and Housing Summit, successful councils are “building smarter, more joined-up ways of working” rather than simply merging structures.