Local Government Reorganisation: Navigating Change Through Strategic Procurement

Current status of Local Government Reorganisation and Devolution 

Local government reorganisation is the process of changing how councils are structured and what services they deliver. In February 2025, the government invited all councils in two-tier areas and small neighbouring unitary authorities to formally submit proposals for reorganisation into new unitary authorities that are responsible for all local services. The English Devolution and Community Empowerment Bill, currently under debate in the House of Lords, seeks to simplify the reorganisation process. Ultimately, consolidation aims to streamline governance, reduce duplication, and unlock efficiencies within local government. 

All councils undergoing reorganisation have now submitted their final proposals, yet the pace of implementation varies, as councils in Surrey and areas on the Devolution Priority Programme (DPP) will move at greater speed.  

Alongside local government reorganisation, the English Devolution and Community Empowerment Bill will advance a distinct yet aligned agenda, focused on transferring powers and funding to Mayoral and Strategic Authorities through a standardised devolution framework. The framework will enable Mayoral and Strategic Authorities to take greater control over key areas such as transport, housing, skills, and economic development, ensuring decisions are made closer to the communities they affect. 

Several Mayoral Combined Authorities, such as Greater Manchester Combined Authority and the West Midlands Combined Authority, already operate under established devolution deals. Meanwhile, the government’s Devolution Priority Programme (DPP) will accelerate the next wave of agreements, aiming to bring around 77% of England’s population under enhanced devolution.  

Both local government reorganisation and devolution create challenges including mapping legacy supply chains, novation, and consolidation. But they also present opportunity to take a strategic approach, maximising value for money, bolstering resilience and enhancing social value through a place-based approach. Councils that proactively plan procurement and contract management early and leverage their supplier data will be best placed to maintain service continuity, unlock efficiencies, and deliver on local priorities during this period of unprecedented change. 

Urgency for Local Authorities and the challenges they face  

Councils will need fast, affordable solutions to address the challenges of reorganisation, creating opportunities for smaller suppliers who can move quickly – hence the urgency to start contracts before the funding is re-structured.  

Added to this is the complexity and cost of local government reorganisation as reported by Thornton & Lowe. Moving from two tier systems to single tier, unitary councils require merging functions, aligning systems, onboarding shared policies, reforming governance, and potentially integrating IT and estates with some areas forecasting costs of up to £100 million. With many councils already financially stretched, these upfront restructuring costs may undermine efforts to stabilise local services. 

Alongside financial and structural challenges, operational pressures persist. Councils must plan for new infrastructure, ensure compliance with environmental regulations, and manage planning obligations - all while addressing community needs such as housing, transport, and health. This can feel overwhelming to local councils with all the changes alongside the financial pressures – and at the core of these changes is procurement and contract management.  

Our Solutions  

Contract Management 

With councils facing reduced capacity and the added complexity of reorganisation, the need for end-to-end contract management has never been greater. 

This is where we can provide direct, demonstrable value. Our contract management solution gives councils a complete wraparound service that oversees contracts from procurement through to renewal, performance, compliance, and supplier management. It offers: 

• Contract management. 

• Supplier relationship management. 

• Performance and KPI monitoring. 

• Further competition support. 

• Full lifecycle oversight through our OPTIMiSe technology platform. 

We currently manage over 5,000 active contracts for public sector clients, using OPTIMiSe to monitor renewals, costs, performance, and supplier compliance ensuring nothing falls through the cracks. 

OPTIMiSe centralises critical contract data, provides transparent oversight, and ensures every high value contract delivers ongoing value. Its collaborative tools allow authorities to choose which aspects of contract management to outsource, from light-touch support to full lifecycle oversight. This flexibility is especially important during reorganisation when internal teams may be stretched or undergoing structural change.  

Additionally, our dedicated Lifecycle team specialises in proactive contract management, preventing value erosion after contract award, which is a common issue highlighted in industry analysis.  

By combining commercial expertise with a powerful digital platform, we provide councils with the capacity, control, and visibility needed to manage contracts confidently and compliantly - even during periods of major organisational change. 

Contact our Head of Lifecycle, Joanna Donohue, to start your contract management journey – joanna.donohue@csltd.org.uk.  

https://www.procurementservices.co.uk/our-solutions/lifecycle 

Compliant Frameworks 

During local government reorganisation, councils must continue delivering essential services while merging teams, systems, and governance structures. This places enormous pressure on procurement teams who must ensure compliance, continuity, and value, often with reduced capacity. 

We have a variety of frameworks that can directly address these challenges. We currently offer: 

• 54+ active national frameworks 

• 470+ approved suppliers covering every major spend category a council may need, including ICT, facilities, legal, HR, education, highways, social care, digital services, security, fleet, construction, EV infrastructure, food supply, PPE, logistics, telephony, and more.  

These frameworks are fully compliant with PCR2015 and Procurement Act 23, simple to access and fast to mobilise.  

What This Means for Councils During Reorganisation: 

1. Continuity of service 
   Councils can seamlessly procure replacements or expansions for essential contracts (ICT, safeguarding, maintenance, social care equipment, highways, education systems) without running full tenders. 

2. Reduced workload during staff or governance changes 
   Frameworks remove the burden of supplier vetting, competition design, commercial negotiation, and compliance checks. 

3. Guaranteed compliance 
   Our frameworks undergo robust competition and supplier evaluation, ensuring full PCR 2015 and Procurement Act 23 compliance and reducing audit and legal risks at a time when governance is under increased scrutiny. 

4. Access to local and specialised suppliers 
   Our frameworks bring together global, national, and local suppliers, supporting local economic development while maintaining choice and flexibility.  

5. Integration with Procurement Services for full contract coverage 
   Once a council calls off from one of our frameworks, Lifecycle can manage the entire contract, ensuring performance, renewals, KPI delivery, and supplier accountability through OPTIMiSe.