The Institute for Government's (IfG) latest report on Reorganising District Councils and Local Public Services (Sept 2025) arrives at exactly the right moment. England's councils are gearing up for the most ambitious wave of local government reorganisation (LGR) since the 1990s—and this time, it's happening alongside transformative devolution powers. The IfG delivers a crucial message: this isn't just reform, it's a complete system rebuild.
Here's the reality: local government is transforming at unprecedented scale and speed. But transformation must meet the ground truth of delivery.
Around 41% of England's population will experience this reorganisation wave firsthand. It's all part of a bold vision to simplify structures, devolve real power, and amplify community voices. The English Devolution and Community Empowerment Bill creates the framework—fewer tiers, stronger accountability, genuine local control. But as the IfG makes clear, success hinges on timing and capacity. Get this right, and devolution becomes a genuine leap forward. Get it wrong, and we're left with another structural reshuffle that changes little for the people who matter most.
The implementation reality
The report maps transformation across two distinct phases:
Phase One: "Safe and Legal" Day One
New authorities must hit the ground running—with harmonised pay, governance, IT and finance systems that actually work from day one.
Phase Two: Long-Term Service Transformation
Real integration, cultural alignment and service redesign. This is where the magic happens—where financial and operational gains truly emerge. But it takes years, not months.
The IfG recommends new unitaries aim for populations around 500,000+, striking that crucial balance between resilience and community connection. Whatever the size, one truth remains: you can't transform whilst you're firefighting.
The pressure points that matter
The report highlights five challenges that keep appearing:
- Capacity stretch: Running business as usual while building something entirely new.
- Service harmonisation equity: Avoiding postcode gaps in bins, benefits, or housing.
- Financial realism: Managing upfront costs that often dwarf short-term savings.
- Local identity: Keeping smaller communities heard within larger footprints.
- Strategic delivery: Protecting housing, growth, and regeneration from disruption.
What leaders must do next
The IfG's recommendations align perfectly with what we see across our public sector partnerships:
- Sequence with purpose – Stabilise essential services first, then transform.
- Design for your footprint – Merging into a county looks completely different to splitting one apart.
- Invest in the enablers – HR, IT, and programme capacity aren't back-office issues—they're mission-critical.
- Engage and communicate – Transformation dies in silence. Bring your people with you.
- Leverage procurement – Don't just roll over contracts; use reorganisation to embed innovation and real value.
What central government must deliver
The IfG challenges Whitehall to step up:
- Provide clear timetables and transition funding, not just blanket deadlines
- Strengthen cross-departmental coordination to prevent service disruption
- Learn from the early movers (Norfolk, Lancashire, Hull & East Yorkshire)
- Support independent audit and scrutiny to protect accountability
What it means for communities
For residents, success looks like simpler, joined-up services with clear accountability. But if transitions go wrong, the story becomes one of missed bins, billing chaos, and "who do I call?" confusion.
The IfG is crystal clear: structure alone doesn't deliver better outcomes—leadership, culture and communication do.
Transform's take: the opportunity
We see this moment as a once-in-a-generation chance to rethink how local government works for people—not just how it's organised.
Reorganisation and devolution can unlock more strategic, data-driven, and digitally enabled services. But that requires councils to move beyond structure towards service design, AI-assisted insights, and collaborative leadership that puts communities first.
Our work with local authorities shows that successful councils treat reorganisation as the beginning of transformation—never the end. They understand that real change happens when you combine structural reform with cultural transformation, digital innovation, and relentless focus on outcomes that matter.
This isn't just about creating new organisations. It's about creating new possibilities for the communities we serve.
"Structure alone doesn't deliver transformation—people, clarity and vision do."
Get involved
Ready to explore how Transform UK supports councils through reorganisation, digital transformation and service redesign? Join one of our free AI or Service Design Labs—get in touch with our team for details.