Reimagining public services for local communities

In late 2024, the English Devolution White Paper set out the government’s ambition to simplify local government structures.

The goal is to deliver better outcomes for residents, strengthen local accountability, and unlock savings that can be reinvested into vital public services.

As part of this vision, 21 two-tier areas, currently operating through both county and district councils, were invited to submit proposals for reorganisation. In most cases, this will lead to the creation of new councils serving populations of approximately 500,000 or more.

Larger councils could bring greater efficiency, more strategic decision-making, and streamlined public services. But such scale also raises concerns. Local identity and responsiveness may be harder to maintain, and residents could feel increasingly disconnected from those making decisions. Without thoughtful planning, existing inequalities risk being widened rather than reduced. Ensuring strong local representation and meaningful community engagement will be essential. It is also imperative that councils use the opportunity to design services based on a whole place basis, prioritising outcomes through joined-up service delivery, with a clear emphasis on prevention and early intervention.

Local Government Reorganisation (LGR) comes at a time when local authorities are already under considerable strain. Budgets are stretched, demand for services is rising, and a national shortage of skilled professionals is placing additional pressure on delivery teams.

In the first phase of reorganisation, selected councils will be tasked with integrating a wide range of services. These services are currently delivered through a blend of models: some in-house, some outsourced under differing contract terms, and others through Local Authority Trading Companies (LATCos).

Bringing all of this together will be complex. It will require significant planning, careful coordination, and a strong focus on avoiding disruption to the frontline services people rely on every day like highways maintenance, waste and housing.

Yet with challenge comes the opportunity to do things differently. LGR creates a chance to rethink how services are delivered and to design them in ways that are more resilient, more efficient, and more responsive to local needs.

Each delivery model brings different strengths and risks. Insourcing allows for more direct control, but it can also increase pressure on internal teams. Outsourcing may offer scale, but often lacks flexibility and social value. LATCos provide a compelling middle ground, combining the ethics of public service with commercial agility through the lens of public-public partnerships.

For more than 20 years, Norse Group has worked in partnership with councils across the country to deliver essential services through joint ventures. Our flexible LATCo joint venture model avoids the rigidity of traditional outsourcing. It enables councils to adapt services without lengthy renegotiations and ensures that they have a seat at the table when it comes to both service design and budgeting.

Born from the public sector to deliver better for the public, Norse is committed to supporting local authorities through this period of transformation. We understand the challenges and are committed to helping councils deliver services that are not just efficient but rooted in local priorities and values.

By working together in true partnership, councils can manage the complexity of reorganisation and seize the opportunity to build sustainable, people-focused services that communities can trust and be proud of.