As councils across England undergo Local Government Reorganisation (LGR), a new report from the Local Government Association (LGA) shows that this isn’t just a structural change, but it will also create digital opportunities
The LGA’s report, Local Government Reorganisation: Cyber, Digital, Data and Technology Considerations, highlights that the reorganisation process must be about more than combining services or redrawing boundaries.
It creates a chance to embed long-term digital transformation that can reshape how local services are delivered.
With over £123 billion in annual spending and more than 1.2 million employees across local government, the scale of LGR is massive. It affects every part of regional service delivery, from social care to waste collection, and how councils use technology will determine how successfully they adapt.
A strategic opportunity for digital maturity
While ensuring continuity on “Day 1” of the new authority is vital, the report encourages councils to go further. Digital transformation should be led from the top, with senior executives championing a long-term vision. Councils that succeed will move past simply merging existing systems; they’ll design new, resident-focused services fit for the digital age.
This means establishing shared service platforms, integrated customer experiences, and forward-looking data strategies. Councils that used Local Government Reorganisation to challenge legacy systems and invest in scalable infrastructure made greater progress on digital maturity.
Change doesn’t only affect systems. It also affects people. The emotional and professional impact on staff is immense, and the report stresses that people must be at the centre of any transformation strategy. Clear communication, digital skills training, and strong leadership were key success factors in councils that maintained staff morale and performance throughout reorganisation.
The importance of planning and governance
One of the report’s key findings is the importance of early planning. Councils that mapped their existing tech estates, understood contract obligations, and assessed digital capabilities were able to make more informed and strategic decisions.
Governance also plays a big role. Unclear leadership structures and decision-making delays were common challenges. The report recommends setting up dedicated digital boards, using agile governance models, and maintaining detailed decision logs to support transparency and accountability.
Prioritising cybersecurity and data
With IT systems being merged or separated, cybersecurity risks increase. Councils must take a proactive approach, appointing senior information risk owners, managing data-sharing agreements, and ensuring system documentation is current. Cyber resilience is no longer optional; it’s essential for maintaining public trust.
While cost savings are often a driver of reorganisation, the report warns against overestimating short-term digital returns. Councils faced unexpected costs related to IT migration, licensing, and cybersecurity upgrades. However, long-term savings were found in consolidating data centres, moving to cloud-based infrastructure, and reducing duplicated systems.
To help councils avoid reinventing the wheel, the report calls for creating a shared digital support hub. This would provide practical tools, peer support, and expert guidance to support digital transition across the sector.
The role of leadership in lasting change
Successful digital transformation during Local Government Reorganisation (LGR) depends on strong, visible leadership. Senior executives must prioritise digital investment and direct their organisations toward inclusive, agile, and resident-centred services.
