Local Government – Looking Forward to New Opportunities
Local government has a key role to play in rebuilding Britain. Yet, the sector has been among the worst-affected (1) by austerity, with 8 councils having declared effective bankruptcy since 2018, and one in five (2) reporting they may follow suit without intervention from central government.
The pressing challenges faced by local authorities have received recognition from the newly formed government, with the new Prime Minister Keir Starmer meeting England’s regional mayors in his first week after taking office. Notwithstanding potential for further new deals to empower local governments and advance regional devolution to support economic growth, there is already much to learn and build on from local authorities that have already shown ambition and seized opportunities to improve the quality and accessibility of services.
New opportunities
In our new local government report, published today, we highlight the ways that ambitious local authorities have built resilience in the face of austerity. We argue that others can learn from them by:
- Raising additional revenues through government schemes and private sector investment
- Understanding communities through collaboration with Voluntary and Charity Sector
- Using behaviour change insights to reduce demand and drive productive behaviour change
- Driving productivity through ‘smart cuts’ by simplifying policies, redesigning processes and reducing failure demand
- Embedding digital first services and investing in robotic process automation and AI
There isn’t a one-size-fits all solution, of course. So capturing such opportunities and emulating the best in local government requires building effective institutions that can effectively navigate local complexities, demand pressures and spending constraints.
Building high performance
At Leapwise, we understand the pressures that local government is under and are passionate about identifying effective ways to help local authorities better understand their communities and deliver outstanding public services. However, our view is that local leaders must focus equally relentlessly on the question of how to create high performance organisations that can keep up with increasingly complex and fast-changing demands. We believe that this requires particular attention to the ingredients of high performance that matter most, including:
- Strategy and investment: Strategy is about both setting clear goals and uncovering insights for maximum local impact. Councils should understand local needs to guide budget allocation and major investments. Where efficiencies are required, instead of salami slicing service provision, they should aim for higher savings to reinvest in sustainable improvements.
- Programme Acceleration and Assurance: Balancing an extensive change portfolio with business–as–usual is challenging, especially with limited resources and difficulties retaining specialists. Success requires clear goals, identifying the right strategic solutions, smart delivery models, and regular stock-takes to ensure benefits and prevent programme drift.
- Leadership and Organisation Development: Local authorities need to create and empower innovative leaders dedicated to public value. This requires defining critical leadership behaviours, establishing clear measurement and rewards systems for effective leadership, and developing performance through training and routines that support learning and growth.
- Collaborations, Partnership & Decision Making: Local authorities can achieve more and drive efficiencies by collaborating across government tiers and with local partners. Despite often conflicting agendas, the best results come from building a shared, data-informed understanding and focusing on tangible areas where collaboration will drive results.
We want to foster further debate around how best to create high performance councils amid the huge constraints the sector operates under. We’re on our own high performance journey too, which is why right now we’re testing a 9-day fortnight working pattern (3) and redesigning our own services through customer journey mapping.
We invite you to download our High-Performance Local Government report for more in-depth insights and strategies to transform these challenges into opportunities to build a high performance team.