LOCAL GOVERNMENT REFORM An opinion from “inside”

Anonymous

The author sets out government plans for local government reform, and offers practical tips of how to prepare for the transition. 

We’ve all heard the saying that ‘the only thing that doesn’t change in local government is the constant change’ and this year that has certainly been true, with devolution and local government reorganisation in England. 

What is happening? 

The English Devolution White paper (published on 16 December 2024) set out the government’s plans to reform local democracy with two linked but separate initiatives. English Devolution White Paper - GOV.UK . 

Devolution set out the government’s ambition to set up new Mayoral Authorities, which would cover larger geographies and undertake a number of strategic functions. The government is seeking to devolve power from Westminster and to reduce regional inequality. 

English Mayors are well established, following the referendum in 1998 for a London Mayor - with several prominent mayors representing their regions. 

Local government reorganisation set out to streamline the county and district splits, moving towards new unitary councils. 

Government wrote to all councils in two-tier areas on 5 February: 

• Invitation to develop a proposal for local government reorganisation 

• Setting out the criteria for proposals 

• Deadline for Interim Plan submission – 21 March 

• Deadline for Proposal submission – 26 September. 

Areas which were selected are now working on their proposals, focused largely on at what level of population and boundaries the new (larger) councils should sit at. 

Both Mayoral Authorities and the new Unitary Councils will be new bodies. 

What does government want us to think about? 

In developing proposals, considerations are (although not limited by): 

• A proposal should seek to achieve a single tier of local government 

• Unitary local government must be the right size to achieve efficiencies, improve capacity, and withstand financial shocks 

• Unitary structures must prioritise the delivery of high-quality and sustainable public services to citizens 

• Proposals should show how councils in the area have worked collaboratively to meet local needs and are informed by local views 

• New unitary structures must support devolution arrangements 

• New unitary structures should enable stronger community engagement and deliver genuine opportunities for neighbourhood empowerment 

• Boundary changes – ideally use existing districts areas as building blocks. 

What is the impact for property professionals 

A number of ACES Members are involved in preparing the business cases and several have been involved in previous unitary changes. In talking to ACES colleagues in advance of this article, as you would expect, we have very different views on the process, the necessity, and what the outcome should be. 

However, consistent feedback has been that property professionals need to be involved and here are some things to think about: 

Who gets what property assets? 

Mayoral bodies will not get any assets, although at the time of writing, fire service functions are planned to go under a new mayor (with police/Police and Crime Commissioner functions). In this instance, consideration of the transfer of the fire estate (where applicable) needs to be thought through. 

The mayor will also need an office and identifying a headquarters will be a key challenge (especially where over a number of geographies). The experience of other areas is that while the mayor’s office may start out small, over time they grow (as additional responsibilities are added). Therefore some flexibility on space is needed. 

For LGR, broadly the new areas will get the assets that fall within the administrative boundaries, although there may be some ‘negotiation’ on more unusual holdings. 

Are there are any efficiencies that could be driven out of the estate (through LGR)? 

After many years of One Public Estate, reducing budgets, and asset rationalisation, the thoughts were that opportunities may be limited. However, there could be options (particularly once new unitary structures are in place) to look at how services are delivered and also to undertake some detailed asset management planning. 

While some of the efficiencies from unitary government are around a reduction in staff (particularly senior management), large cohorts of staff (for example social workers or planners), will still be needed in the new authority and will not be directly affected. However there will be change management for all staff, as they move into a new organisation, with new structures, systems, and policies. 

Therefore a bit of caution around asset rationalisation is needed. It should be noted that setting up the new organisations can take a number of years and that in the first few years, there may be additional consultants, project managers, and staff who will need a base. 

Data, data, data 

The world has changed a lot since 1974; unfortunately some of our data has probably not been updated since then. Looking at data (including systems) will be key. 

What do we need to do to help transition 

We will hopefully have public consultation and decisions from central government in Spring 2026 on what the new structures are and the time frame for the election of shadow authorities. Government will then place a Structural Change Order (SCO) – this will set out the details of the new organisation. 

The SCO will also impose a number of restrictions on the various councils involved; particularly around the letting of contracts. For property professionals it will also require the approval of the new shadow authority for property transactions over £100,000. 

It should be noted that the £100,000 limit on disposals include granting or disposing of any interest in land; entering into a contract to dispose of land or grant or dispose of any such interest; and granting an option to acquire any land or any such interest. 

There will be substantial planning needed for any new authority (whether there is aggregation or disaggregation of functions). Things that need planning from an early point are: 

1. The need for a new asset management strategy 

2. A new accommodation strategy (noting that staff may be working form different sites) 

3. The formal transfer of property assets/leases and the notification to tenants/freeholders etc. of the new body 

4. Branding of the new council (and buildings) 

5. Parking strategy 

6. Access and security strategy (including new branded ID badges) 

7. New data systems (i.e. terrier) 

8. Transfer of any company owned assets. 

This list is not exhaustive and it may be that tactical decisions are made around maintaining teams, systems, and contracts to well after vesting day. Given the huge amount of work in making sure that the new council is ‘safe and legal’ from the first day of operation – transformation may need to wait until the new authority has been established and has been running for a couple of years. 

Equally some items are key for ‘day one’ – such as the ability of teams (especially senior management) easily to access the estate and provide some of that visibility that will be key. 

Hopefully this article has given some pointers and some areas to think about. The approach and impact will be very different in each area – however there are some core considerations for all of those involved in local government property. There may also be further changes in national policy or timescales. 

What is clear though - It looks like a busy few years! 

Ed- If any other members wish to add to this advice, I’m very happy to run articles. These, like our author here, can be anonymous. Here is an opportunity for ACES to excel to dissemine useful information to its membership, in what promises to be a challenging time for all.