Any discussion around local government reorganisation (LGR) is likely to reveal a mild case of schizophrenia within the sector. Add in a mention of innovation and this psychological split is inevitable.

The state councils find themselves in – financially destitute and swamped with demand – has forced local authorities to strain every sinew to find new ways of coping. And many feel there isn't the head space to consider the weighty challenge of reorganisation.

On the other hand, this sobering modern municipal reality can have others humming along to Labour's recycled election anthem by D:Ream – Things Can Only Get Better – immersed in the sense of the possible.

A third voice around the table struck a more optimistic note, arguing: ‘The danger is that some of this can become a distraction, but this is a chance to work with partners, such as NHS Integrated Care Boards (ICBs) to design something that works for people. To design something that works at prevention.'

The gathered senior officers at a round table in the City of London, organised by The MJ and local authority trading company Norse Group, epitomised this 50:50 emotional split.

‘Keeping services going is still the main priority,' chimed in one participant. ‘We're looking to address this through innovation but LGR makes this difficult.

‘The speed of getting back any investment has a particular impact.'

Another agreed: ‘I don't want to be too distracted by LGR. My focus is on continuing to provide efficient services.'

A third voice around the table struck a more optimistic note, arguing: ‘The danger is that some of this can become a distraction, but this is a chance to work with partners, such as NHS Integrated Care Boards (ICBs) to design something that works for people. To design something that works at prevention.'

In addition, it was pointed out that, while financial resilience and service pressures such as temporary accommodation and social care were not set to be solved by unitarisation, the larger organisational footprint would help.

However, this drew a warning that councils should avoid ‘diving' into putting lines on a map. Instead there was a need to carefully consider ‘what good really looks like'.

A particular challenge is the management of contracts, with the Government clearly determined to travel at breakneck speed towards new structures.

On this, it is clear all authorities are in differing places. Not only are they all inevitably at different points in the life of any given contract, but they are also managing them in a plethora of ways.

One senior officer present said they had found council contract management to be a ‘complete mess' because authorities were not using management systems properly

‘We need to do the housekeeping now to get them in order.'

The differing systems confronting merging councils were set to be ‘really complicated' they added, creating a ‘huge challenge'. The likes of waste services range from in-house provision to private contractor management, complete with a welter of differing staff contract terms.

Fears that some soon-to-be-deceased councils may plunge into questionable and costly contracts just ahead of suffering the fatal blow from Whitehall had led some around the table to mitigate this risk.

There were already section 151 officers getting together across regions to discuss contracts ahead of unitarisation in order to avoid bad decisions being signed off.

Similar fears of bad deals extend to assets, with one voice warning against flogging property to town and parish councils without careful consideration.

‘We have some excellent assets to leverage with industry. We need to use them effectively.'

Given reorganisation has simply added to the challenges confronting councils, the need for innovation has moved up several notches. However, the gathered senior officers were pessimistic about the available talent to manage this. Nonetheless, there was a reluctance to buy it in.

With Government continually tossing a new requirement the sector's way, there was a sense that the modern council officer needs to be agile.

This was particularly true for younger workers and those just embarking on council careers. And one senior officer emphasised the need to keep opportunities fluid for Gen Z, making full use of apprenticeship and secondment roles.

But it was clear a genuine fear still exists about losing good staff in the wake of LGR. With the ‘flight risk' split markedly between the under-and over-55s. The former at heightened risk of opening their wings.

‘I'm trying to calm people down,' said one participant. ‘It won't affect the front line that much.'

‘Communication is key,' added another. ‘We need to tell staff not to panic but also say that things are going to change. Local government is going to look different and so it should.'

‘If we can communicate why it is a benefit then we are onto a winner.'

As the conversation took an optimistic turn, those gathered around the table talked about ensuring people understood the opportunities as well as the challenges. Then the focus needed to be on skilling people up to realise those opportunities.

‘There's a piece about looking after existing staff, showing them they can get involved in different work streams,' said someone.

Unitarisation, they added, would create opportunities so district council staff can consider roles in areas such as social care.

Equally, suggested someone else, staff needed to be empowered to take delivery to the new councils.

‘It's about understanding what is needed for communities,' said a third participant.

‘We need to think about how we build things upward.

For many, reorganisation meant a ‘real opportunity to look at public sector reform'.

‘That's the real prize,' said one. ‘To see long-term benefits for residents.

‘It's the closest we are going to get to a blank sheet of paper.'

While another worried that government may only be looking at the process through a financial lens, there was a general feeling that the tumult should be seized on by the sector as a learning opportunity.

Work should be done to ensure councils approach it in this vein.

‘Local government has been a bit insular,' said one officer. ‘We need to work more collaboratively with government, so we are seen as the front line of government.'

Learning should also move horizontally, suggested another.

‘The real crime would be if some areas are doing great things and others are floundering.'

This was accompanied with a call for adequate funding to manage the reorganisaition.

‘There's a solid argument that there should be funding coming for us,' they said. ‘We haven't done this to ourselves.'

The ongoing rollercoaster of LGR emotions is probably inevitable given the challenges and changes facing the sector, but it did leave your scribe in mind of another song from his youth – Oscillate Wildly by The Smiths…

 

Attendees:

Christopher Blundell, director of resources, Thanet DC

Justin Galliford, chief executive, Norse Group

Matt Gladstone, chief executive, Peterborough City Council

Heather Jameson, editor, The MJ (chair)

Paul Marinko, deputy editor, The MJ (reporting)

Salena Mulhere, deputy chief executive, Test Valley BC

Paul Pawa, group strategic development director, Norse Group

Laura Peacock, head of innovation, Oxfordshire CC

 

Comment 

 

CEO of Norse Group Justin Galliford 

 

It's clearly going to be a tough time for councils as they start the transition to the new local government structure. In these uncertain and challenging times, it's important not to be so distracted that services suffer. Maintaining frontline services is difficult enough with finances under so much strain; and allowing them to decline will only lead to resident dissatisfaction.

I believe that devolution and LGR offer opportunities as well as challenges: getting it right means better services, and I believe that one of the key features will be the need to work collaboratively with other public sector bodies, in particular the NHS and blue light services. The re-drawing of boundaries is likely to lead to greater alignment, with broadly similar geographical footprints. This opens the door to joint commissioning, sharing of support services, and rationalisation of the combined corporate estates. Not only will this provide significant cost savings, but it will serve to foster closer working relationships and exchange of knowledge and skills – and resources. 

With Norse's well-established partnership model, I know from experience that collaboration works. Our joint ventures with local authorities provide a model for successful joint working, allowing our partner councils to retain control, save money and deliver social value.  

This round table provided a great forum for serious discussion of these issues, and I'd like to thank The MJ for making it possible, and especially Heather for chairing the event and making it so successful. It's always great for me to hear direct feedback from senior officers, and understand how local government is thinking – especially at a time of tumultuous change.