Reframing the Local Government Reform opportunity 

The Devolution White Paper has set a clear direction that we will be replacing one type of two-tier local government with another type of two-tier local government, and in doing so bringing more consistency to local representation across England.   

Whether you agree or not with the direction of travel, it’s a period of intense flux and distraction for council leaders, chief executives, and their councillor and officer teams. County-District areas in particular are affected immediately, with a big impact on their short-term priorities, but most areas will have some form of negotiation to navigate. 

In my time as the chief executive of two councils, I steered the way to the unitarisation of County Durham and was part of the process that led to Cambridgeshire and Peterborough eventually forming a Combined Authority. In my eight years as Chief Executive of the LGA, I supported a good number of areas through previous rounds of reorganisations and the establishment of Combined Authorities.  

Now as part of the IMPOWER team, we are starting to advise our clients formally and informally on Local Government Reform (LGR) and Devolution.  Whether you’re filled with excitement or dread, I know that such structural changes have the potential to stretch personal and organisational capacity to the max. This time around, there are some things that are the same – and a couple of things that are new.  

Some things that are the same: 

1. Decisions on new councils are ultimately a political choice. Don’t underestimate the power of local MPs, especially of the governing party.  Decisions in the past have definitely been affected by strong representation, especially where there have been strong personal connections between councillors and MPs.
2. If you are standing on your current brand to propose growing your organisation, even if technically this will be abolished in the new arrangement, remember to own your reputation warts and all. Your pre-existing credibility with decision makers will matter.
3. Will you be able to create a compelling narrative to the public? As well as your pre-existing reputation with residents, will the proposed change enhance or diminish their sense of identity and belonging? 
4. There is a lot of rumour and supposition going around. The LGA is running a very good set of FAQs and mythbusting on social media. You would do well to follow them. 

Some things that are different this time: 

1. Two-tier at county-district level is being eliminated, whether there is local support for this or not. There is no point in fighting a rearguard action now this question has been settled. Instead, I recommend acting as if you wish to be a key player in the emerging model of local government. 
2. The government wants bigger, more sustainable unitary councils. This doesn’t mean smaller exceptional cases won’t be made, but on average I sense they would choose a single authority of 650,000 over two authorities of 325,000 unless the arguments for the latter are overwhelmingly compelling. 
3. The creation of Mayoral Strategic Authorities in this round of devolution means that not all problems need to be solved by redrawing boundaries at council level. Government will expect cross-border issues to be resolved by Mayors. 
4. The Government has placed a massive emphasis on economic growth. Cites are very significant driver of the economy, and currently many are ‘underbounded’ – i.e. their boundaries are too tight with critical business and housing areas in neighbouring councils. If a city is already a unitary – or is not – there will be a big drive for a ‘Greater [City Name]’ which will challenge existing borders. 

I will be writing a further blog post in the coming weeks, covering further questions around relationship with strategic partners, the role of combined authorities, and the pitfall of expectations management with savings promised. In the meantime, do get in touch with the IMPOWER team to explore how we are helping our clients to face the LGR and Devolution challenge.