The future of LGR: 10 steps every affected council should take

The immediate LGR implementation work may have paused, but the underlying pressures facing local government have not. Budgets remain stretched, demand for essential services continues to grow and many councils are still relying on ageing HR and payroll systems that create unnecessary cost and complexity.

In my conversations with HR and payroll leaders across local government, one message comes through clearly: councils need to remain flexible, but they cannot afford to stand still.

The work already undertaken is not wasted. As Socitm has highlighted, the review has encouraged councils to examine their systems, data, contracts, governance and operating models. That insight remains valuable, regardless of what happens next. 
Elsewhere there have been minimal updates since the announcement, except for the Housing Ministry updating its planning practice guidance to confirm that local authorities must not delay plan-making. 
 

Here are 10 actions local government leadership teams should consider now.

1. Keep transformation moving

Treat the pause as a window, not a stop. Modernisation plans should be based on the pressures your council faces today, rather than being tied entirely to the LGR timetable.

Improvements that reduce duplication, strengthen governance or improve the employee experience will deliver value whether your authority remains unchanged, joins a new unitary structure or develops a shared-services model.
 

2. Protect and reassure your people

Uncertainty is hardest on employees. Clear, consistent communication is essential, particularly for teams who have already invested considerable time in preparing for change.

People need to understand what is known, what remains undecided and how they will be supported. Change should feel managed and purposeful, not something that is simply being done to them.
 

3. Audit your HR and payroll landscape

Map every system, contract, process and manual workaround across the organisation. Identify where employee data is duplicated, where approvals are delayed and where teams rely on spreadsheets or rekeying information.

You cannot design a stronger future state until you understand the cost, risk and operational complexity of the current one.
 

4. Consolidate onto a single employee record

A trusted employee record is the foundation for effective HR and payroll management. Bringing people, pay, employment history and terms into one system reduces administration and gives managers a consistent view of their workforce.

It also means you are better prepared to integrate organisations quickly if the direction of travel changes again.
 

5. De-risk payroll before change lands

Payroll is where transformation problems become most visible. Errors affect employees directly, damage trust and can create significant compliance and reputational risks.

Use this period to review payroll governance, data quality, controls, reporting and migration readiness. Fixing the foundations now is considerably easier than trying to resolve them under deadline pressure.
 

6. Put workforce data to work

Reliable workforce data can support better decisions about cost, capacity, recruitment, retention and service demand.

Leaders should be able to understand where skills are concentrated, where vacancies are creating pressure and how workforce costs are changing. Those insights matter whether the organisation is preparing for LGR, devolution, shared services or simply another difficult budget round.

7. Choose technology that scales both ways

Your technology should work for your council as it exists today and remain capable of supporting multiple entities, structures and service models tomorrow.

Avoid committing to a platform that only works in one organisational configuration. The right solution should allow you to scale without a disruptive rip-and-replace exercise if the future structure changes.

8. Build the shared-services foundation now

Shared services do not need to wait for formal reorganisation. Standardising processes across directorates and teams can reduce duplication and improve consistency immediately.

A modern operating model can deliver savings as a standalone council and provide a practical foundation for absorbing a merger later.

9. Turn efficiency into measurable savings

Transformation should produce more than a compelling business case. Set clear targets for reducing duplication, improving process efficiency and lowering administrative cost.

Track those benefits and make them visible in financial planning. Savings need to become a measurable contribution to the budget, not simply a promise on a presentation slide.

10. Work with an experienced partner

Complex public-sector change is easier to navigate with a partner that understands local government’s operational, compliance and workforce realities.

The right partner will help you pressure-test your plans, manage risk and make improvements now, while keeping your organisation ready to scale when the wider picture becomes clearer.

Progress is still possible

The review of LGR has changed the timetable, but it has not removed the need for stronger workforce foundations. Councils that pause every improvement risk losing valuable time. Those that focus on practical, transferable changes can emerge more resilient, efficient and prepared.

The future structure of local government may still be uncertain. Your next step does not have to be.

At MHR, we help local authorities modernise HR and payroll in a way that supports their current organisation while remaining flexible for future change. Find out how we can help your council prepare for whatever comes next.