The road to a devolution revolution: turning challenge into opportunity

For the Labour Party, devolution – namely the transfer of powers and funding from national to local government – represents serious unfinished business. Plans going back as far as 1969 have proposed to replace swathes of local councils with a far smaller number of single-tier unitary authorities, but the jumble of past deals has amounted to a convoluted, unfinished legacy.

Since their return to power in 2024, however, Labour is leaving little to chance, and under the banner of a ‘devolution revolution’, efforts are currently underway to move away from the current two-tier system of district and county councils, with a view to providing local government with both more control and accountability. The cost savings and efficiencies to be gained from these plans are believed to be considerable, allowing many councils currently in crisis mode to focus on delivering the vital services the country so desperately needs. From the immense challenges that devolution poses, it seems, also come opportunities.

At a glance: the challenges and opportunities of devolution and reorganisation

• Delivering change while maintaining ‘business as usual’
• Leveraging on the expertise of interim professionals
• Consolidating assets, budgets, systems and processes
• Helping people make the transition to a new structure

With a tide of change in local government also comes the chance to address a threat it’s been facing for years – a lack of the skills needed to deliver vital services. The REC’s 2018 white paper Public Sector 2025 warned of up to seven more years of skills shortages still to come, and it would seem that the end is still nowhere near in sight. Digital expertise, especially, is in short supply – something that’s severely impeding progress when it comes to making use of potentially transformational and efficiency-driving technologies, for example artificial intelligence.

Could this reorganisation spark a recruitment shake-up?

These chronic skills shortages are a challenge that devolution and reorganisation have the potential to solve. For many small, local authorities, a fast, modern hiring process may have seemed out of reach, hampered as they are by budget deficits and outdated, clunky recruitment technologies and processes. Councils that merge into larger single-tier unitary authorities will be given access to combined financial pots, meaning many may now have the funding they badly need to modernise. If this is approached in the right way, authorities will be able to harness recruitment benefits usually only available to larger organisations, including:

• A speedier time-to-hire – thanks to more robust software and processes
• Improved visibility and reporting – due to better compliance and greater accountability
• A better candidate experience – thanks to a smoother and quicker hiring journey
• Much broader candidate reach – due to the wider geographies across the authority

For now, the potential recruitment benefits of devolution are yet to be realised, but the fact remains that the outcome of this seismic change remains largely dependent on whether authorities have the skills to deliver it. While devolution presents immense complexity, there is also an abundance of potential to be seized. So what are some of the challenges and opportunities of the reorganisation of local government?

1. Delivering change while maintaining ‘business as usual’

Devolution and reorganisation represent the biggest challenge to local government in a generation, and will require highly-skilled project teams to bring the plans to fruition across a range of departments and functions, including procurement, finance, legal, HR, marketing, and many more. But the ongoing delivery of vital services remains as important as ever and can’t be deprioritised or paused, which means the backfilling of many roles will be needed to keep ‘business as usual’ running smoothly.

Those leading or navigating local government reorganisation will need to consider how these responsibilities can be reallocated. Can existing members of staff – especially those who are keen to progress – take on additional duties and tasks? Will you need to take on temporary staff to keep the lights on?

2. Leveraging on the expertise of interim professionals

In the lead-up to the creation of more unitary authorities, it’s likely that permanent recruitment may start to slow in anticipation of the duplication of roles once the district and county councils merge. This may mean that organisations have to instead rely on vital interim skills in order to deliver what they need to and keep services running as normal.

Not only anticipating the skills that will be needed, but also formulating a plan for accessing them, will require its own resource and forethought. The right recruitment and resourcing partner – expert in the unique challenges you face in public services – should be engaged at a strategic workforce level to help you achieve this. 

3. Consolidating assets, budgets, systems and processes

One of the biggest challenges of devolution will be the integration of whole teams, technologies, systems, processes, services and policies across historic boundaries. This will require the input of project managers with the skills and experience needed to manage a range of different stakeholders, all with competing priorities, as well as a willingness from existing staff to take on new or emerging responsibilities in areas like economic development, planning, and public health.

With new unitary councils expected to serve populations of 500,000+, integration is likely to be a lengthy undertaking which will require ongoing monitoring, coordination and evaluation.

4. Helping people make the transition to a new structure

As multiple organisations begin the long process of merging together, one of their key responsibilities will be to bring people along with them on the journey – not just staff, but the local communities they serve. Actively involving employees and providing clarity on job roles and career advancement will help ease uncertainty and facilitate a smoother transition, while clear and meaningful consultation processes will be critical to gaining public support.

Reorganisation and devolution undeniably present a dual challenge for local government, but if they’re managed effectively, these reforms have the potential to improve service efficiency, stimulate economic growth, and reinforce local democracy. To take advantage of this opportunity, a collaborative mindset, sound strategic planning, and crystal-clear vision will be vital. 

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