Title

FINANCE

Before reorganisation we need a clear view of the sector's core purpose

How local government 'can sensibly be reorganised without a clear view of its core purpose (will adult social care services be in or out?) or funding mechanisms' is baffling Abdool Kara.

Rarely have we seen the amount of potentially radical change as in the sector today. The fundamental issue of local government finance is under examination, through both the business rates review and further limitations on borrowing for commercial investment.

Of course, this is in the context of significant funding reductions since 2010, and a Government rowing back from early pandemic promises of ‘whatever it takes' to more of an imposed ‘burden sharing' approach.

Aside from finance, we have the biggest policy question facing the sector, the future of adult social care, with the mooted Green Paper well overdue, and pre-recess hints of a merger with health. Alongside that, local government's role in public health is now in question, with the recent demise of Public Health England and the creation of the new National Institute for Health Protection.

In governance terms, we have the new Local Government Association Model Member Code of Conduct, as well as the outcomes of the Redmond Review of local government audit. I write before the latter is published, but there is a consensus the 2014 reforms have not been entirely successful and a radical new approach is needed.

Perhaps the issue that most defines the politics of local government – planning – is also heading towards a watershed moment with new planning rules proposed in the recent White Paper, and visible urgency within Government to move to implementation. All this is happening alongside discussions on local government reorganisation ahead of the devolution and recovery White Paper, purportedly just around the corner.

How local government can sensibly be reorganised without a clear view of its core purpose (will adult social care services be in or out?) or funding mechanisms baffles me.

More importantly, these proposals have already run into intense lobbying, both from interested stakeholders, but also from within nominally friendly political circles, including the councillor ‘foot soldiers' who can be key to electoral victory.

How much political capital the Government is prepared to expend on delivering all of these once-in-a-generation changes will be interesting to see. My bet is not all will come to pass.

Abdool Kara is executive leader for local services at the National Audit Office

FINANCE

Counting the cost of rectifying exceptional financial support to councils

By David Blackman | 19 March 2026

The scale of the problems exceptional financial support is intended to tackle highlights the need for structural funding reform, say sector experts. David Bl...

FINANCE

Cruising through the council pre-election comms challenge

By Louise Neilan | 19 March 2026

Louise Neilan provides a steer to key officers on how to keep councils on the right side of the guidance on pre-election publicity.

FINANCE

Culture not just compliance

By Hayley Titchner | 19 March 2026

The new Employment Rights Act is set to usher in fresh challenges for the sector which will necessitate behaviour change and a fresh culture if organisations...

FINANCE

Missions mirage

By Jonathan Werran | 18 March 2026

The absence of a genuine national growth plan and an accompanying plausible narrative is a block on any strong prospect of local economic revival, argues Jon...

Abdool Kara

Popular articles by Abdool Kara