Local Council Reorganisation: A Genuine Opportunity – If We Get the Details Right
Simeon Butterworth, Director and UK Local Government Sector Lead
| WSP
Local government reorganisation marks the biggest shake-up in a generation, offering a genuine opportunity to create more strategic, resilient and integrated services that serve communities better – if reforms are properly funded and people-focused.
Local government reorganisation in England, as outlined in the December 2024 White Paper Power and Partnership: Foundations for Growth, marks the most significant overhaul of local governance in a generation. But beyond the policy language and structural diagrams lies something more profound: the opportunity to reshape how people experience public services in the places they call home.
For families relying on social care and local transport, and teams revitalising high streets or planning growth, this is not just a bureaucratic reshuffle. It’s about trust in local leadership and those who deliver vital services.
Navigating Financial and Operational Pressures
Councils enter this period under sustained financial pressure and rising demand. The Comprehensive Spending Review delivered targeted support, including uplifts for children’s services and SEND provision, increased investment in the Affordable Homes Programme, and a 10-year rent settlement supporting both maintenance and new build housing. Additional capital for regeneration, transport and infrastructure, and the return to multi-year funding settlements, will also aid financial planning.
However, the fiscal outlook remains constrained and many councils will continue to face tough decisions - from raising council tax to cutting core services - until financial reform addresses structural shortfalls.
The Government’s commitment to adult social care funding is encouraging but unlikely to meet immediate pressures. Meanwhile, urgent clarity is needed on high-needs deficits, projected to reach £5 billion next year, with over half of councils warning of insolvency when the statutory override ends.
Investment in prevention, especially in social care and SEND, offers a route to managing long-term demand. But these ambitions are undermined by an outdated funding system. A credible roadmap to long-term financial reform is therefore essential.
Reorganisation and Devolution: A Complex Balancing Act
The intent to simplify governance, improve efficiency and deepen local influence over economic growth is welcome. It is important though to distinguish between ‘reorganisation’ - restructuring council boundaries and governance models, and ‘devolution’ - the transfer of powers and resources from central to local government. Both are central to success but require distinct approaches and implementation.
Planned reforms such as unitary restructuring, strategic authorities and enhanced mayoral powers are substantial undertakings. Without sufficient resources councils risk service disruptions, inefficiencies and political friction.
Change at this scale also carries upfront costs, such as workforce transition, IT integration and service harmonisation. Without clear funding settlements, councils risk trade-offs that jeopardise core services.
Strategic Capacity: Structures Alone Won’t Deliver
Larger authorities and strategic governance offer potential for greater coordination and planning. Strategic Authorities are expected to take on major responsibilities, such as transport, housing, skills, economic development and climate action. But capacity doesn’t scale with structure alone.
Strong leadership is required and change management must be professional, well-resourced and guided by clear delivery plans. Efficiency gains will depend on focused investment in people, skills, digital transition and culture. Without this, transitional costs, staff turnover and misalignment could outweigh benefits.
Supporting the Workforce Through Uncertainty
Of course, none of this can happen without the local government workforce; the people who turn policy into reality. Many are under intense pressure, facing unclear futures as structures evolve. Leadership capacity will also be a challenge and expecting all of these changes to be delivered on top of ‘day jobs’ is unrealistic. Staff need clarity and support to adapt, with leaders given space to lead.
Uncertainty about roles, governance and continuity risks worsening recruitment and retention, especially in vital areas like social care, transport, planning and children’s services. Many teams face resourcing gaps, aging workforces, and a growing need for new skills, including digital. So, a successful reform programme must therefore place staff wellbeing at its centre, with clear communication, recognition and investment in future development. Otherwise, councils risk losing the very people critical to making new systems work.
Community Engagement and Democratic Legitimacy
Local government’s strength lies in its connection to people and place. That sense of place must not be lost in the move to larger, more strategic institutions. Maintaining public trust requires more than structural clarity – it needs visible, meaningful community engagement.
Community assemblies, participatory budgeting, and accessible consultations help residents to stay connected to decisions shaping their lives. Reforms must reflect communities’ lived experiences and earn legitimacy through openness and responsiveness.
The Ongoing Role of Central Government
Local government cannot deliver this alone. Central government must provide clear direction, realistic timetables and funding aligned to reform costs.
This means shifting capabilities - currently located within DfT or MHCLG - out of Whitehall and into Strategic Authorities, with funding and accountability. This will help to enable local flexibility and a move away from uniform models from the centre.
Independent oversight can help maintain focus, share best practice and sustain momentum. But above all, central government must treat councils as genuine partners - not mere implementers of centrally imposed plans.
Delivering a Legacy That Lasts
Done right, this reform offers an opportunity to build better local government—more strategic, resilient, integrated and focused on regional community needs. But it will only succeed if it works for the people who deliver local services and those who rely on them daily.
That means care workers, case officers, bus drivers, planners, finance teams, partners, and elected leaders; the people who believe in public service and are ready to deliver. With the right support and a shared purpose, this can be more than structural reform. It can lay the foundations for a stronger, fairer and more prosperous society, rooted in people, place and partnership.
At WSP, we stand alongside local authorities through this transformation. As the UK’s largest professional services consultancy supporting councils nationwide, we know the path ahead will be complex. But with honest collaboration, long-term commitment and shared ambition, this moment can deliver lasting, meaningful change that puts people, communities and purpose at its heart.
If you would like to chat further with WSP, please get in touch at: publicaffairs-uk@wsp.com.
