LGR, Devolution & The Interim Market: Navigating Change, Finding Opportunity

As local government reorganisation (LGR) and devolution reshape the public sector, interim leaders play a crucial role in bridging resource gaps and driving transformation. With significant system change, and additional powers & funding being devolved from central to local government, strong leadership is essential for ensuring the benefits for public service delivery are captured through these reforms and the creation of new local and combined authorities.

Interim managers and subject matter experts will play a critical role in ensuring organisations and leadership teams have the capability and capacity to achieve this alongside permanent structures. Reflecting on learnings from previous rounds of LGR and devolution agreements, Tile Hill hosted a webinar led by Anthony Lewis. The session featured insights from Barry Pirie, an interim consultant with 20 years of experience in local government across Scotland and England, including his tenure as Director of People & Business at Wiltshire Council. Wiltshire Council was created in 2009 with Barry playing a key role in its inauguration, making him an invaluable source of experience for those navigating change in their organisations.

Finding Opportunity in the Interim Market

Naturally, there are concerns with the proposed scale change of LGR. People are understandably concerned about job security and the impact on their career. To better capture the sentiment of the sector, we conducted a survey on how the proposed changes from LGR and devolution are affecting the careers of senior managers in the sector – with results to be revealed in full at The MJ Future Forum 2025.

Our survey suggests that 58% of senior managers are concerned about staff leaving their team, and the same number are concerned about the uncertainty their teams are feeling. Linked to this, 25% have already started looking for their next role and 44% are considering leaving LG all together. Most importantly, 61% feel that LGR and devolution has changed their thinking on their future career plans.

It is important to note that LGR also creates new interesting opportunities – new jobs, new operating models, new ways of working, transformation, modernisation, digitalisation, innovation – a “fresh chance to reinvent local government”. We also know that 48% of people are excited about the positive impact it could have on their career and see it as an opportunity for career advancement.

The workload that comes with LGR and devolution  is huge, and with tight timelines. All whilst council services still need to be operated successfully, a significant challenge in itself with service pressures and funding levels. Something that has been identified by organisations such as Grant Thornton in their ‘Learnings from new Unitary Councils’ 

“LGR requires significant staff time and resources at the same time as councils are delivering business as usual services, and also requires different skills,” the report states, “The level of resources required for successful implementation should not be underestimated.”

Talent and resourcing is on the minds of many senior leaders in the sector, and from the reflections of those who have been through this previously, it will drive demand for interims and subject matter experts to complement permanent staff members. 

Some of the capacity and capability gaps identified by Barry and Anthony during their discussion suggest that interim demand will rise in areas such as:

• Driving Financial savings through transformation – LGR is designed to improve public service, but also drive financial efficiencies. Achieving this and actually delivering savings is critical.
• Finance resources to create new accounting procedures and work with external auditors to understand the financial accounting implications of unitarisation.
• DSG, Investment, reserves and debt profiling – Considerable work will need to be undertaken to understand a council's DSG position, reserves, investment and debt profile and how this may be absorbed into a new council structure.
• Statutory roles such as S151 and S73 officers – These will be needed in new council shadow structures, whilst also managing any gaps that may emerge as people take ownership of their career future. With limited pools of permanent and interim resources for FD positions, I'd expect it to be an area of demand.
• Programme and Projects – Programme Management skills will be needed to successfully manage successful programs, as well as the ability to establish PMOs and business analysts to help pull it all together.
• IT, Digital and Technology – Clear IT strategies will be needed, and a clear data strategy to ensure performance management and decision-making can be established. This includes the ability to establish/transfer IT systems into a new organisation.
• Communication Support (internal and external) – These are major programmes of change, and for any council, the need to take staff, service users, and partners with them is hugely important.
• Legal & Governance Expertise – Setting up new councils and CAs and supporting Members on that journey is fundamental for how they will operate in the future. Getting governance and risk management right during the shadow phase and into the new organisation going live is a critical foundation for future success.
• Children & Adults Social Care – In some parts of the country, we'll be moving from a single county to multiple unitaries. The ability to stand up entirely new models for children and adult social care is important. This will lead to the creation of more statutory DCS and DAS roles, which will place strain on already stretched talent pools for these roles.
• Capital Programme Delivery – Bringing together capital programmes across a range of organisations, understanding gateways, milestones and performance is important for future funding decisions. With already constrained resources, and challenges in capital programme delivery across a range of housing, infrastructure and property programmes, this will continue to be an area of demand.
• Property and Asset Management – With councils needing to merge their property portfolio, set against a backdrop of councils with investment portfolios, we’d expect to see demand for those who can embed corporate landlord models, improve investment portfolios, and generally support with asset management. In a housing context, this is already set against a pressure on stock maintenance and the regulators inspection regime.
• Transport Specialists – As newly formed, and existing CAs, take on more responsibility around transport. The need for experts across all elements of strategic transport will continue, an area where there are already shortages. There will also be a need for those who can manage passenger transport operations and operational transport services such as buses.
• Spatial Planning – Whilst Chief Planners are always in demand, we will also see a need for those with spatial planning expertise in combined authorities.
• Strategy and Policy – New councils require new corporate plans, which need to be baselined with KPIs and established in advance of vesting date.
• Commercial and Procurement – The need to manage and merge contract processes, review service delivery mechanisms and drive savings over time will be crucial.
•  HR and OD (HR and culture change capability) – Taking staff on this journey is critical. But knowing where you are heading with a target operating model, organisational values and desired culture is vital. Being able to support existing leadership teams as they transition to a new TOM, a new leadership structure, which sometimes may not include them, is a critical strategic capability.

Succeeding as an Interim Leader through Devolution and LGR

Anthony and Barry shared valuable reflections and learnings from their own experience, providing useful strategies for navigating the period of change ahead, and giving insight on the things to consider to ensure local authority leaders, interim and permanent, can manage the transition successfully and efficiently, whilst keeping in mind the impact on service users, staff and colleagues.

Below are some of Barry’s advice to interim leaders:

• Leverage Your Networks and Stay Agile

Building strong relationships with key industry players and consultancies is essential for unlocking new opportunities in the interim market. A well-established network not only provides access to roles but also helps you refine your value proposition—allowing you to clearly articulate your leadership style, expertise, and transferable skills.

In the fast-evolving landscape of Local Government Reorganisation (LGR) and Devolution, agility and resilience are more critical than ever. Successfully balancing leadership demands with personal well-being ensures long-term effectiveness and sustained impact in your role.Establish a clear vision

Once appointed as interim leader, a well-defined vision is essential for engaging and motivating employees at all levels. Leaders must communicate their vision consistently and repeatedly, avoiding the temptation to modify the message to make it more interesting to hear. A clear and stable message fosters alignment across management, staff, and political leadership. At Wiltshire council, Barry explained that it took him around 9-12 months to engage and identify the new vision and behavioural framework for the org. The sooner it is done, the better, as leaders will be able to identify the psychological contract for all employees, and clarify their commitment.

• Set Realistic Timelines

Transformation projects often take longer than initially anticipated. Flexible, active project management and thorough scrutiny of plans are critical. Early-stage priorities should include harmonising internal systems, pay structures, and employment terms, which are rarely uniform across authorities. Leaders must determine whether to standardise conditions upward or downward, balancing financial feasibility with employee expectations.

“You often underestimate the level of resources needed,” Barry explains. “It’s a huge challenge to deliver the scale of change and do it well. It’s not about more resources necessarily, but the right resources, the right skills, the right place to deliver that high level of change to be successful.”

• Ensuring a Perfect Vesting Day

A smooth transition on vesting day is critical to establishing confidence in the new organisation. Key elements include:

1. Making sure that payroll systems work well, allowing everyone to be paid in time.
2. Ensuring branding, IT systems, and office spaces are ready.
3. Having support teams (floor walkers, fire marshals) available to assist employees.
4. Avoiding service disruptions, particularly in transactional functions.
5. Addressing potential barriers, such as delayed IT system access or administrative bottlenecks.

Engaging and Supporting Employees 

LGR requires restructuring local authorities to create the right-sized councils that provide clear service delivery and financial efficiency. The transition can be complex and challenging for employees, as they may face job security concerns, redundancies, and pay structure changes. While LGR introduces uncertainty, it also brings opportunities for new roles, innovative operating models, and digital transformation.

Leaders must prioritise transparent communication and employee engagement at all levels. Identifying and nurturing talent across the organisation helps build trust and cohesion. Providing coaching and support for employees navigating career transitions is important as there is good talent to be identified and embraced throughout every organisation. Furthermore, leaders should not neglect employees who have transitioned into new organisations, leaving their teams and ways of working with the old organisation – as they may be experiencing  “survivor syndrome” and may not be grateful for their new role as well as be supportive of the reorganisation. It is important to support them wherever possible.

• Build a Strong Leadership Team

Confirming senior leadership positions as early as possible (ideally before vesting day) can accelerate decision-making and strategic alignment. While this may not always be feasible due to legal or political restrictions, having a provisional leadership framework in place ensures a smoother transition.

• Ensure a Painless Exit Strategy

This also relates to an interim leader’s exit strategy. It is important to ensure the transition out of the organisation as painlessly as possible before an interim’s tenure is over. The project must leave everyone within the organisation with confidence to run business as usual and better equipped for having engaged an interim’s support.

Future Outlook

The future of LGR and devolution remains dynamic. And whilst our survey has highlighted high levels of concern, it also points to high levels of optimism about the opportunity for career advancement. With 25% of senior managers in local government looking for a new role, 13% considering retiring earlier,  and 44% thinking of leaving the sector, we expect to see high levels of change in leadership structures. Coupled with the need to resource LGR and devolution plans appropriately and with subject matter experts, it would suggest the period ahead will create high levels of demand for interim managers and consultants. 

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