New Localis report suggests that successful transformation of newly created English unitary councils, formed from the Local Government Reorganisation programme, hinges on the prioritization of digital systems integration to improve the quality of public services for residents. The report, titled “Connected devolution: digital systems for successful, holistic reorganisation,” was commissioned by global Software as a Service (SaaS) company TechnologyOne and makes a series of policy recommendations to central government, strategic combined authorities, and existing and new local unitary councils on how to achieve a digital devolution dividend from the overhaul of local government structures.
According to the report, the policy goal of creating fewer and larger councils is not only a structural challenge, but also a social one for local government in terms of ensuring a smooth and legally compliant transition for the newly formed councils. The study found that the overall digital readiness of English local government is hindered by legacy dependency, fragmentation, supplier lock-in, and constrained finances. To overcome these challenges, the report recommends treating digital integration as a “socio-technical” reform, with a focus on standardizing processes and data across organizational boundaries rather than simply replacing IT systems or renewing contracts.
One of the key recommendations of the report is for new unitary councils to include digital leaders in top-level decision-making to ensure the successful integration of digital systems. This is crucial for achieving the promised efficiencies of local government reorganization and avoiding the potential negative effects on the devolution agenda and future of local government.
Emma Foy, Local Government Lead at TechnologyOne, emphasizes the importance of digital foundations in determining the success or failure of reorganization. She states that “the authorities that standardize on modern, interoperable cloud platforms, rather than trying to stitch together legacy systems, are the ones best placed to deliver real savings, resilience and better services.”
The report also highlights the need for central government to play a role in facilitating successful integration through its function as the ultimate arbiter of LGR bids, its support for local capacity, and its influence in setting standards and shaping the market for public service provision. The report recommends that government mandate cybersecurity and data ethics governance policies as core components of LGR bids, support local authorities in investing in capacity, and establish a national reference architecture for local government core systems.
For strategic authorities, both newly formed and well-established, the report suggests increasing coherence, capacity, and overall buying power by providing a locus for scaled-up subregional activity. This includes coordinating collective bargaining and leveraging power to reset market dynamics around openness and portability.
The report also includes recommendations for local authorities, such as embedding cybersecurity and data ethics assurance in core governance from the start, treating procurement as portfolio stewardship, and prioritizing inclusion and accessibility in digital transformation.
In conclusion, the report emphasizes the critical moment at which local government finds itself and the importance of approaching digital systems integration with a realistic timeline, empowered leadership, and disciplined commercial strategy. Failure to do so could result in the under-delivery of promised efficiencies and frustration of the devolution agenda and the future of local government.

Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.