As we reach the midpoint of 2025, it's worth reflecting on the tumultuous period we are witnessing home and abroad and the impact this is having on those having to navigate their impact.
Many local authorities are already undergoing sweeping transformations, driven by financial and service challenges and the accelerating pace of technology and AI. The additional pressure of local government reform and the impact of devolution are putting huge strains on the capacity of many in local government at an executive and political level. For leaders operating within this evolving landscape, the pressure to deliver change effectively, while also maintaining trust, morale and performance of their people is unprecedented.
So how can the leadership team manage what seems like an impossible task?
Key to success is the courage to embrace the challenge head on providing effective leadership rooted in clear communication, empathy, adaptability and strategic foresight. With reforms placing more power in the hands of local authorities and pushing greater accountability to the frontlines, leaders must rise to the occasion and guide their teams through transition with resilience and agility.
Communication as the cornerstone of leadership
In times of change, communication becomes the anchor that keeps teams grounded. Amid reforms that may restructure councils, reallocate funding, or redefine service delivery under devolved powers, ambiguity can quickly breed fear and resistance. The most effective leaders champion open, transparent, and honest communication – even when the message is difficult.
Rather than shielding teams from reality, strong leaders foster cultures where truth is valued over comfort. This means sharing critical information early, explaining not only what is changing but why it's necessary, and being candid about the potential impact. It also means creating communication channels that go both ways – inviting questions, feedback, and even dissent. Whether through town halls, one-to-one check-ins, or digital forums, giving employees a voice in the process builds trust and inclusion.
This is especially vital in the context of devolution, where local decisions will increasingly shape regional futures. Employees need clarity on the shifting policy and governance landscape to see where they fit in and how their work supports the objectives of these locally empowered bodies.
Leading with empathy and awareness
Beyond communication, the best leaders deliver with compassion and emotional intelligence. The combination of ongoing reforms, increased public scrutiny, and the global undercurrent of economic and social uncertainty has put many employees under strain. Whether facing burnout, anxiety, or fear of redundancy, people need leaders who are attuned to their wellbeing and proactive in their support.
Understanding the pressures employees face – and recognising where leadership behaviours may unintentionally contribute to stress – is essential. Again, well-run organisations will be alert to behavioural changes, and offer support mechanisms to help teams navigate personal and professional challenges.
Addressing concerns around job security, workload, and future prospects is especially important during periods of restructuring and bringing clarity here is critical, even if the message is challenging.
Building resilience and adaptability
As councils adapt to new structures, budgets, and responsibilities, the ability to bounce back from setbacks and remain flexible will be a key determinant of success. Effective leaders instil resilience not only by modelling it themselves but by recognising and enabling others to demonstrate these qualities.
This means offering training and development opportunities that help others develop their skill sets and prepare for evolving roles. Upskilling, cross-training, and career development initiatives signal investment in employees' futures, helping them feel more confident and valuable.
It also means celebrating progress – even small wins – and maintaining an optimistic outlook. Resilient teams believe in their ability to overcome challenges, and this mindset is strengthened when leaders acknowledge effort, highlight progress, and show gratitude.
Being ‘human' in a tech-driven era
While the structural and policy changes associated with local government reform are significant, they are unfolding against the backdrop of wider forces – especially the rapid rise of artificial intelligence and digital transformation. AI has the potential to improve service delivery, automate routine tasks, and drive data-informed decision-making. But there is a risk in this being seen as dehumanising.
Leaders must strike a careful balance – embracing innovation without sacrificing empathy. Employees impacted by automation or role redesign need leaders who will explain changes clearly, support reskilling, and ensure fairness in the transition. Technology may enhance productivity, but human connection and purpose are what sustain motivation and engagement.
Looking ahead
The road ahead in 2025 is anything but simple. Local government reform and devolution will continue to challenge existing structures, redistribute authority, and demand more from public sector leaders. Meanwhile, technology, economic volatility, and societal change add new layers of complexity.
Yet within these challenges lies immense opportunity for transformation, empowerment, and progress. Leaders who communicate transparently, act with empathy, foster adaptability, and keep people at the centre of change will not only weather the storm – they will help shape a more resilient, effective, and human-centred future for local government.
As councils and their teams navigate the changing tide, it is these leadership qualities that will determine whether reform becomes merely disruption – or the start of something better.
Dawn Faulkner is a partner at Faerfield
