The local government structures shake-up: Reorganisation, impact, and technology needs

June 13, 2025

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Mark Gannon, Director of Client Solution at Netcall, discusses the UK Government’s creation of unitary authorities as part of the abolition of the two-tier local government structures in England and the role of technology in this significant reorganisation

The UK’s Government is highly centralised, with much power and authority, primarily through funding and decision-making mechanisms, residing in central government rather than local government. However, the current government is undertaking wide-ranging reforms that aim to decentralise this power, provide local areas with more control, and foster economic growth by enabling better decision-making at a local level. (1)

The changes will build upon combined authorities already in place across regions within England. New unitary authorities will be created as part of the abolition of the two-tier local government structures in England. These two-tier systems include county and district councils, each responsible for different local services in the same areas. These structures cause unnecessary complexity for citizens who struggle to navigate the division of responsibilities, causing confusion, fragmentation, and inefficiencies.

This reform is expected to be the biggest reorganisation of local government in England in over 50 years. The short and long-term impacts of this, and the role that technology must play in supporting this migration, cannot be understated. This includes assessing how technology suppliers need to support local government through this transition, which will undoubtedly be challenging.

The impact of reorganisation

The move to unitary authorities is bound to have a profound impact on local government, bringing with it both benefits and challenges along the journey. For example, the vast number of councils involved in the reorganisation can make integration particularly challenging. This may introduce lengthy and costly processes that are complicated to manage across the country.

Critics may also argue that larger councils may become less responsive to local needs as a result of the restructuring, as they may lack the closeness to the people they serve and understanding of local issues that smaller councils can bring. Others believe bigger councils will be better equipped to plan and deliver services on a wider scale and leverage resources more effectively. Economies of scale mean that the new, larger unitaries can deliver more services in a more consistent way than is the case across the current two-tier structures.

The real test will be whether these new authorities can strike the right balance between scale and local connection.

Preparing for the transition

Local authorities must begin preparing for the transition to unitary authorities by considering several key factors:

Governance and organisational change: The merger of multiple authorities into a single unitary body will require careful organisational planning. There will be a need for new leadership, policies, and processes to align the different services and governance structures that currently exist. Establishing a hierarchy of the needs that new councils will deliver can help with developing plans for governance and organisational change.
Technology and systems: Technology is one of the most critical elements in supporting the reorganisation. Many councils still rely on legacy, often siloed, systems, and integrating these technologies into a single cohesive architecture will be vital for efficiency. Unitary councils must adopt flexible, scalable, and integrated platforms that can connect data silos and facilitate the smooth delivery of services across the new authorities.

Cumberland Council’s story is a great example of a unitary authority that has already followed this approach. Back in 2023, two new unitaries were created, replacing the former Cumbria County Council and the six districts. To facilitate the transition, the council scaled its existing use of a platform-based low-code and omnichannel contact centre solution to develop over 100 digital services – including waste collection, social care applications and customer service – to unify and connect the different councils’ IT systems. By doing so, a streamlined and consistent experience has been created for both citizens and council workers.

With further reforms occurring across England, learning from previous successful changes is a necessity. Many limitations that new systems are designed to address are the fault of ageing, disconnected legacy systems. Using a single platform will enhance the council’s efficiency, further benefiting its citizens.

Data and process integration: Councils will also need to align their data and processes to avoid disruptions in service delivery and business-as- usual tasks. The transition to unitary authorities will likely involve combining systems such as revenue and benefits, housing, and social care solutions. This is a significant challenge, as each authority involved in the merger will probably be using different software solutions, making it crucial to select systems that are flexible and can easily integrate, working alongside and streamlining these processes.
Partnerships with technology vendors: To ensure the reorganisation runs smoothly, councils should partner with technology vendors with a proven track record of supporting local government. These vendors should offer collaborative, flexible, and transparent solutions – and ways of working – that can scale with the evolving needs of local authorities. The ability to make rapid adjustments to new structures is essential for success, and local authorities will benefit from suppliers that understand the complexities of their operations.

Local government reorganisation in England promises to bring greater decision-making to local areas and streamline service delivery. However, the transition will require careful planning and significant investment in technology and governance structures in order to be successful. Councils must start preparing now to ensure they are in a position to harness the opportunities that these reforms present.

By leveraging flexible, integrated technology solutions and learning from councils that have already carried out the process, local authorities can improve their service delivery and ensure that the reorganisation is ultimately beneficial for their citizens.