How can local authorities navigating LGR transition to single software, finance and other systems? An ‘evolution, not revolution’ strategy might be best, says Moore Insight’s director of local government and accounting Graham Oliver.
On 5 February 2025, the government announced the areas in England that will lead its plans to reshape local government. This marks the beginning of the most significant reorganisation since the late 1990s.
This blog delves into the details of the devolution plans, the rapid timelines for implementation, and the strategic considerations for navigating this monumental shift.
Devolution plans and timescales
Six county areas – Cumbria, Cheshire & Warrington, Norfolk & Suffolk, Greater Essex, Sussex & Brighton, and Hampshire & Solent – have received Devolution Priority Programme (DPP) status, signalling a shift toward greater autonomy and efficiency. As they prepare for change, other two-tier counties across England are also being encouraged to evolve, potentially reshaping local government.
The timelines for this government policy are extremely quick, aiming to bring about significant change as swiftly as possible, within the lifetime of the government.
- End of March 2025: Interim local government reorganisation (LGR) plans submitted by all two-tier areas in England.
- September 2025: Final plans and business cases submitted by DPP areas and Surrey to MHCLG.
- November 2025: Remaining two-tier counties submit final plans and business cases.
- April 2026: Strategic combined authorities established.
- May 2026: Regional mayoral elections.
- April 2027: LGR Tranche 1 begins (Surrey and DPP areas), following shadow elections in May 2026.
- April 2028: LGR Tranche 2 begins, following shadow elections in May 2027.
Therefore, the first new combined authorities will be in place by April 2026, with newly reorganised local authorities potentially operational by April 2027 and all other areas by April 2028 – if everything remains in line with the original government timetable.
Potential challenges
One of the big tasks and decisions the new organisations will need to undertake is to develop an ICT (information and communication technology) strategy and put plans in place for moving to single systems consisting of IT software, finance, human resources, revenue and benefits, regulatory functions, and the potential splitting of county functions, including social care.
ERP systems
While there may be a temptation to implement a new Enterprise Resource Planning (ERP) system immediately, we would advise against this. Introducing such a significant change during a period of operational upheaval can be overwhelming.
Instead, we recommend an ‘evolution, not revolution’ strategy which involves keeping existing software solutions in place and consolidating them over time, allowing a smoother transition. Let’s use a finance system as an example. Here are the immediate steps you would take:
- Identify a primary system: Select one existing finance system as the main platform for consolidation.
- Continue using constituent systems: Allow staff to use familiar systems with minor updates for new council branding.
- Implement a consolidation tool: Use a tool to regularly merge transactions into the primary system, ensuring accurate reporting and a single source of truth for government returns.
Technology: new or existing system?
The decision to implement a new system or retain an existing one depends on factors like system age, contract scope, and suitability. If a constituent authority already uses a cloud-based SaaS solution, it may be practical to retain and adapt it. Alternatively, procuring a new system is valid – if backed by a strong business case.
Conclusion
The principle of ‘evolution over revolution’ is key for local authorities navigating LGR. Taking time to consolidate existing systems before introducing new ones supports a smoother, more stable transition. As the tale of the tortoise and the hare reminds us – slow and steady often wins the race.
For advice on strategic decisions, consolidation tools, or staffing support during reorganisation, please contact Moore Insight here.
Graham Oliver is director of local government and accounting at Moore Insight
