A s we move into the Local Government Association (LGA) Conference, local government yet again finds itself in interesting times. It has been an eventful year and the landscape councils must navigate is ever-changing.

It is a year since the General Election and a new Government, with their priorities and approaches. More recently the Spending Review, with the dust still settling on the long-awaited package that brought major wins (not least the £39bn Affordable Homes Programme, which will make a generational difference through increased access to housing), leaves important questions to resolve.

We meet against the backdrop of rapid change, with newly elected mayors and councillors bringing fresh energy to local politics. To all of them: welcome to the local government family.

The creation of a national Transformation Fund which will see £555m over the period of the Spending Review to reform children's social care, recognises councils' experience and value in improving the sector, complemented by the additional funding of £560m to expand placement capacity for children in care and ensure that more children stay with their families.

Amid the flux, our sector has again proven itself resilient. We adapt to new pressures, seize opportunities, and continue to deliver vital services with creativity and care. There is, as ever, much to do – but we should take confidence in how far we've come and the potential that lies ahead. The future of local government is not just about managing constraint; it's about unlocking opportunity.

First, the Government's renewed commitment to multi-year funding settlements is long overdue and a positive step forward. Councils have shown remarkable resourcefulness under sustained financial strain, but resilience alone is not a sustainable strategy.

A cross-party review of council funding – including council tax and business rates – is essential. The current model is too opaque and no longer fit for purpose. Reform here would unlock value for money, better outcomes for everyone, and greater trust in local delivery. Creating a future-ready funding model isn't just a technical fix; it's an investment in the success of communities across the country.

Second, councils are the beating heart of place-based leadership, from housing to skills, regeneration to growth, care to community. The creation of a national Transformation Fund which will see £555m over the period of the Spending Review to reform children's social care, recognises councils' experience and value in improving the sector, complemented by the additional funding of £560m to expand placement capacity for children in care and ensure that more children stay with their families.

As shown at UKREiiF in Leeds, councils aren't simply delivery arms – they are catalysts of progress. We are shaping sustainable neighbourhoods, driving investment, and building infrastructure that works for local people.

That's why integration of services around people's lives – not systems – is at the heart of reform, to make it work for people where they are. Devolution offers a powerful mechanism to deliver this, provided it's built on subsidiarity, genuine partnership, and the resources to match. From mayors to ministers, we need joined-up localism where trust flows in both directions, with a shared respect and sense of purpose between local councils and national government.

The central involvement of councils in changes to health and care is an example of where this joint effort is crucial, given their pivotal role in neighbourhood health, prevention and addressing inequalities. The NHS cannot deliver a healthier society on its own. The Government's 10-year health plan to ‘fix the NHS', coupled with the Casey Commission that will look at the future of adult social care, both require health and local government to work hand in glove to transform the way health and care services are delivered for the benefit of all who have cause to draw on them, while also properly considering the workforce too.

Unless local government is a full and equitable partner, not only could it risk these initiatives being severely hampered, but communities and people could lose out.

Third, the opportunity to embrace technology as a force multiplier to unlock the power of innovation for local government. Digital transformation is no longer optional. From data-informed decision-making to AI-driven service innovation, councils have already begun to harness technology to deliver smarter, more efficient public services. The new partnership between the LGA and techUK is an important milestone in this journey – a shared commitment to embedding secure, inclusive, and innovative digital solutions across the sector.

Taken together, these opportunities present a compelling vision for local government: more strategic, more empowered, and more capable of shaping the future of the places we serve. The work ahead is not without challenge – from rising demand to persistent inequalities – but our direction of travel is clear. the sector is ready to lead.

Of course, there are lingering questions councils need answers to. The commitment to funding reform is positive, but the need for action – especially on areas such as provision of services for children with SEND – is pressing. There is also local government reform, with the LGA taking a keen role in working with authorities as they change, but clarity is needed from government. And of course, other issues around housing and providing accommodation for individuals seeking asylum need to be addressed.

As we gather in Liverpool, we do so with clarity, purpose and quiet confidence. We've seen what's possible when councils are trusted and equipped to act. With the right tools, the right partnerships and the right investment, we can deliver lasting, transformative change – not just for today, but for the generations to come.

Joanna Killian is the chief executive of the Local Government Association

The LGA Conference 2025 ‘Empowering people, empowering places' takes place in Liverpool on 1-3 July. Visit www.local.gov.uk for further details