On February 5th, the government unveiled the areas in England that will lead the way in its plans to reshape the landscape of local government in England. This announcement marks the commencement of the most extensive reorganisation of local government since the late 1990s.
In this blog, Graham Oliver, Director of Local Government and Accounting, delves into the details of the devolution plans, the rapid timelines for implementation, and the strategic considerations for navigating this monumental shift.
What devolution is
Devolution in local government is all about shifting powers and responsibilities from the central government to local or regional authorities.
This enables local government to take charge of key areas like skills training and adult education, infrastructure, and wider county/regional economic development.
The goal is to bring decision-making closer to the people, enhance efficiency, and tailor services to better meet the unique needs of each community.
Devolution plans
Six county areas have been awarded Devolution Priority Programme (DPP) status: Cumbria, Cheshire & Warrington, Norfolk & Suffolk, Greater Essex, Sussex & Brighton, and Hampshire & Solent. This signals the start of a transformative journey towards greater autonomy and efficiency.
As these areas prepare for significant changes, the rest of England's two-tier local government counties are also being called to action, setting the stage for an evolution (or is this a revolution?) in local government across England.
Devolution timelines
The timelines for the DPP are extremely quick, aiming to bring about significant change as quickly as possible, within the lifetime of the Government.
End of March: Interim plans for the Local Government Reorganisation (LGR).
Autumn: Full plans for the LGR.
April 2026: New strategic combined authorities in place.
May 2026: Elections for regional mayors.
April 2027: LGR tranche 1 with shadow elections May 2026.
April 2028: LGR tranche 2 with shadow elections May 2027.
Therefore, the first new combined authorities will be in place by April 2026, with newly reorganised local authorities potentially operational by April 2027. This wave of change is expected to extend across the country over a relatively short period!
Potential challenges
One of the big tasks and decisions the new organisations will need to undertake is to develop an ICT strategy and put plans in place for moving to a single systems consisting of IT software, finance, human resources, revenue and benefits, regulatory functions, and the potential splitting of county functions, including social care.
Reorganisation
While there may be a temptation to implement a new Enterprise Resource Planning (ERP) system immediately, we would advise against this. Introducing such a significant change during a period of operational upheaval can be overwhelming.
Instead, we recommend an ‘evolution, not revolution’ strategy which involves keeping existing software solutions in place and consolidating them over time, allowing a smoother transition.
Let's use a finance system as an example. Here are the immediate steps you would take:
Identify a primary system: Choose one of the existing finance systems to serve as the primary system for consolidation.
Continue using constituent systems: Allow former staff to use their familiar systems for daily operations, with minor adjustments for new council branding.
Implement a consolidation tool: Use a tool to regularly consolidate transactions from the constituent systems into the primary system, ensuring comprehensive reporting and a single source of truth for government returns.
Technology: New or existing system?
The decision to implement a new system or retain an existing one depends on the current systems’ age, contract scope and life and suitability.
If any of the constituent authorities have already procured and implemented the cloud-based SaaS (software-as-a-service) solution, it may be practical to retain and adapt it for the new unitary authority.
Alternatively, going to market to procure a new system is also a valid option, providing that a robust business case supports the decision.
Conclusion
Overall, the principle of ‘evolution over revolution’ is crucial for local authorities undergoing significant changes due to the LGR. Taking the time to consolidate existing systems before implementing new ones can lead to a more stable and efficient transition. Remember, as the classic tale of the hare and the tortoise reminds us, a slow and steady approach often can indeed win the race.
If you would like more advice on any of the matters raised in this paper, from the strategic decision making, tools available to enable consolidation, and support required to backfill staff supporting reorganisations, then please contact me.
Graham Oliver, Director of Local Government and Accounting