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If Local Government Reorganisation (LGR) is to be successful, then it is vital that the Government continues to reform and rebalance the way we are funded so we can continue to deliver the critical services our residents rely on.Here in Gloucestershire, we anticipate a government announcement on our future model imminently, with a decision expected before the Parliamentary summer recess.No matter which model is chosen, if councils' funding challenges are not resolved, then any new unitary authorities will be saddled with financial deficits from day one.At Gloucestershire CC, we have been dealing with unfair education funding for more than a decade and are a founding member of the f40 Group which is campaigning for fairer funding and education reform. Its 43 members – including us – are among the worst funded local authorities in England.Our education funding allocation is based on out-of-date figures from 2017 and leaves children in Gloucestershire £2,000 per head worse off than a child in an average authority. The disparity across the country is huge: in East Riding a child with special educational needs and disabilities (SEND) is allocated £900 a year, in Camden it is £3,000.This Government has recognised that the formula needs updating and is trying to make up the shortfall for the lower funded but at such a slow rate it will take 15 years to catch up.With SEND reforms coming into effect by 2028, just as unitarisation goes live in Gloucestershire, it will be critical that the changes are supported by realistic timetables and sustainable, long-term funding to help manage rising demand.This way, we can rebuild trust with parents and carers and provide a fit-for-purpose service, built on solid foundations. While we welcome the direction of SEND reform, f40 has long argued that it can only be successful if backed by fair, sustainable funding.The proposed 90% deficit write-off is of course welcome, but councils must still find the remaining 10%, which in our case will be at least £12.5m and could rise to approximately £27m over the next two years. For many authorities, including Gloucestershire, this will not be easy.Our leader, Cllr Lisa Spivey, is asking government to stop simply tweaking the system and carry out a proper review of funding models while reducing centralised control and allowing us to decide what is best for our children. The Department for Education needs to trust the evidence, approve plans quickly and release the SEND funding without delay. Local systems have delivered. Now government must do the same.Another service area that will start in deficit for almost every new unitary is highways. In Gloucestershire, after years of making the best of it with too little funding, we would require £90m to fully fix our roads. This is despite allocating the highest ever level of highways funding in this year's council budget.We are proud to be one of only a handful of councils to be rated green for our roads and one of only two rural councils at level three for Active Travel. But our focus on A and B routes, and more recently C roads for sensible safety reasons, means what residents see outside their homes is too often make do and mend.Allocating a realistic amount of funding to resolve historic problems, alongside a more reasonable amount going forward, would go a long way to supporting new unitaries to get off on the right footing with residents, rebuilding trust and ensuring they see the benefits of LGR.As is the case every year, there are winners and losers when government funding is allocated. For us this year, the fair funding review announced in December 2025, means Gloucestershire CC will receive £30m less funding a year by 2028-29 at the point of vesting new council(s) – a challenging situation that leaves us in that annual juggling act to set a balanced budget with an ever-shortening window of influence as LGR takes precedence.We are very fortunate at Gloucestershire CC that our foundations are solid – our 2026-27 £698.4m budget includes, in addition to the highways funding, significant investment by the council to improve road safety, education for young people and continued support for the most vulnerable people in the county.We are setting aside money for three new care homes and will open three new special schools in the next couple of years. How long we can continue to balance the books while faced with rising demand from a growing and ageing population without proper funding is, however, up for debate.At the very least councils need more certainty with longer-term funding agreements and more control to decide what is right for our residents through devolution.Devolution will bring much- needed infrastructure funding to unlock additional housing and skills funding to improve outcomes for our young people, particularly those not in education and training and support to economic growth.If LGR is to start on the right footing and win staff and residents over, a new relationship between central and local government is required alongside fair funding for all, not just some councils.Jo Walker is chief executive of Gloucestershire CC

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The key to LGR success

By Jo Walker | 16 July 2026

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