Leading Local in 2026: A Competency Framework for Leaders in Local Government
- truthaboutlocalgov
- 3 days ago
- 15 min read
Leadership in local government is complex and constantly evolving. Whether you lead a team, a service, or an entire organisation, the expectations placed on you in 2026 go far beyond technical expertise. Today’s leaders need to navigate political relationships, manage resources under pressure, embrace digital transformation, and build trust with communities all while supporting a skilled and motivated workforce.
This framework sets out ten essential competencies for local government leaders in 2026. It is designed for anyone in a leadership role not just Chief Executives who wants to reflect on their strengths, identify areas for development, and take practical steps to improve. For each competency, you’ll find:
What good looks like
Questions to ask yourself
Actions to consider
Use this as a tool to challenge your thinking, guide your development, and shape the impact you have on your organisation and the communities you serve.
1) Political Acumen & Democratic Partnership
What it is:
The ability to navigate the complex interplay between elected members, officers, and external stakeholders while maintaining a clear focus on residents’ needs. Political acumen is not about partisanship it’s about understanding motivations, priorities, and constraints across the political spectrum and using that insight to build trust and deliver outcomes. Democratic partnership means creating a culture where officers and members work as one leadership team, respecting distinct roles but sharing accountability for place-based results.
Why it matters now:
The governance landscape in 2026 is more fluid than ever. The English Devolution and Community Empowerment Bill is reshaping local structures, introducing strategic authorities, expanding mayoral powers, and altering voting and scrutiny arrangements. Multi-year funding deals and combined authority models demand leaders who can broker agreements across multiple tiers of government and sectors. Without strong political–officer alignment, councils risk paralysis, reputational damage, and missed opportunities for investment.
“The most effective leaders in local government are those who can combine political sensitivity with managerial clarity creating space for elected members to lead while ensuring delivery remains robust.” SOLACE Leadership Commentary
Key dynamics to master in 2026:
Multi-level governance: Leaders must understand how decisions cascade from central government to combined authorities and districts, and how to influence upstream.
Scrutiny evolution: Expect stronger, more independent scrutiny panels under new governance models leaders need to embrace transparency, not fear it.
Resident legitimacy: In an era of low trust, leaders must communicate trade-offs openly, showing how decisions reflect community priorities.
Ask yourself
Do I actively invest time in understanding political priorities beyond formal meetings?
Have I mapped the informal networks and influencers that shape decision-making?
Can I explain complex choices such as budget cuts or investment trade-offs in language that builds legitimacy and trust with residents?
Do I role-model neutrality and respect for political leadership while safeguarding professional advice?
Do next
Agree “ways of working” charters: Co-create a short, practical document with elected members setting out expectations, decision protocols, and escalation routes.
Decision maps for new structures: Visualise how decisions flow across combined authorities, districts, and partners share widely to reduce confusion.
Quarterly joint sessions: Convene political and officer leadership teams (including combined authority reps) to review priorities, risks, and emerging tensions before they escalate.
Scenario planning: Run workshops with members on potential governance changes (e.g., voting rules, scrutiny powers) so everyone is prepared for reform.
Resident engagement lens: Before major decisions, ask: How will we explain this to residents? Draft a plain-English narrative alongside technical papers.
2) Stewardship & Financial Resilience
What it is
The discipline of safeguarding statutory services while creating space for prevention and transformation under conditions of severe financial stress. It’s about moving beyond short‑term firefighting to a structured, multi‑horizon approach that balances compliance, sustainability and innovation.
Why it matters now
Local government finance is under unprecedented strain. The LGA warns of a £8 billion funding gap by 2028/29, while the Public Accounts Committee calls the system “perilous.” In many councils, adult and children’s social care consume up to 80% of budgets, leaving little for prevention or growth. Meanwhile, 2024/25 outturns show sharp rises in homelessness spend (+21.7%) and continued pressure in education and social care, signalling that demand is accelerating faster than resources.
“Without substantial additional funding, the pattern that emerged during the 2010s local authorities living in a perpetual state of financial uncertainty will continue.” Institute for Government, Performance Tracker 2025
Key dynamics to master in 2026
Three‑horizon planning:
Stabilise statutory services (short term).
Rebuild prevention (medium term).
Drive productivity and transformation (long term).
Productivity focus: ONS data shows public service productivity still below pre‑pandemic levels leaders must measure outputs and quality, not just spend.
Demand management: Homelessness and children’s placements are high‑risk cost drivers; upstream interventions are essential.
Financial resilience culture: Move from reactive cuts to proactive scenario planning and risk stress‑testing.
Ask yourself
Have we modelled a three‑horizon plan that funds mandatory pressures and rebuilds prevention?
Do we track productivity (outputs and quality) alongside cost?
Are we transparent about trade‑offs with members and residents?
Do we have contingency plans for Section 114 risk and exceptional support scenarios?
Do next
Pair your Medium‑Term Financial Strategy (MTFS) with a productivity dashboard aligned to ONS principles; include cost‑to‑serve, outcome metrics and resident experience indicators.
Stress‑test homelessness and children’s placements: Model demand scenarios and identify early‑help levers (e.g., housing prevention funds, family support).
Publish a financial resilience statement: Show how reserves, risk mitigations and transformation plans interact build confidence with auditors and residents.
Create a prevention investment pipeline: Ring‑fence a small percentage of budget for upstream interventions with clear ROI gates.
Engage members in financial literacy sessions: Equip political leadership to make informed choices and communicate them credibly.
3) Ethical Governance & Public Value
What it is
The ability to uphold the highest standards of integrity, transparency and accountability in decision-making, ensuring that every pound spent and every policy adopted delivers demonstrable public value. Ethical governance is not just compliance it’s about creating a culture where fairness, openness and evidence-based choices are visible to residents and partners.
Why it matters now
Public trust in institutions remains fragile. Surveys show that while councils are often more trusted than central government, confidence can erode quickly when decisions appear opaque or inconsistent. The English Devolution and Community Empowerment Bill strengthens scrutiny and audit requirements, signalling a national push for greater transparency and assurance. Leaders who embrace this shift will build legitimacy and resilience; those who resist risk reputational damage and intervention.
“Ethical leadership is the cornerstone of public service. Without visible integrity, even the best strategies fail to gain traction.” SOLACE Leadership Commentary
Key dynamics to master in 2026
Visible decision-making: Residents expect clarity on why choices are made, especially under financial pressure.
Independent assurance: Strong audit committees and risk frameworks are essential to prevent governance failures.
Public value lens: Move beyond cost-cutting to demonstrate outcomes and fairness in resource allocation.
Scrutiny evolution: Anticipate more robust, independent scrutiny panels under new governance models leaders should welcome challenge, not fear it.
Ask yourself
Are our audit, risk and assurance functions robust, independent and visible?
Can residents easily see how we prioritise spend and measure impact?
Do we publish clear rationales for major decisions in plain English?
Are conflicts of interest managed transparently and proactively?
Do next
Publish “open budget” dashboards and decision rationales alongside technical papers make complexity understandable.
Strengthen audit committee remits and ensure they have access to independent expertise; share learning reviews publicly.
Introduce a Public Value Statement for all major programmes, outlining expected outcomes, fairness considerations and evaluation plans.
Embed ethical risk assessments into project initiation documents covering equity, transparency and resident impact.
Train senior leaders and members on ethical decision-making frameworks and reputational risk management.
4) Outcomes, Prevention & System Leadership
What it is
The ability to lead beyond organisational boundaries aligning health, education, housing, policing, and voluntary sectors around shared outcomes and shifting resources upstream to prevention. System leadership means influencing without direct control, creating a culture of collaboration and accountability across multiple agencies.
Why it matters now
Local government faces escalating demand in children’s services, homelessness, and adult social care, with budgets dominated by statutory interventions. The Institute for Government and LGA stress that without a prevention reset, councils will remain locked in crisis response, undermining productivity and sustainability. National policy frames reform around integration, prevention and devolution, making this competency central to success.
“The future of public services depends on leaders who can work across systems, not just within silos.” IfG Performance Tracker 2025
Key dynamics to master in 2026
Shared outcomes frameworks: Move from siloed KPIs to place-based metrics (e.g., school readiness, housing stability, employment).
Pooled budgets and joint commissioning: Enable integrated investment in prevention, with clear ROI gates.
Neighbourhood-level delivery: Empower local partnerships to co-design solutions tailored to community needs.
Data-sharing agreements: Build trust and interoperability across agencies to support early intervention.
Ask yourself
Do our budgets and KPIs genuinely shift resource upstream, or are we still dominated by crisis spend?
Are outcomes co-owned with NHS, DWP, police and voluntary sector partners?
Do we have governance structures that enable joint accountability for results?
Are residents involved in shaping prevention priorities?
Do next
Establish a Prevention Board with pooled funds and shared metrics; publish a dashboard tracking impact on demand reduction.
Pilot multi-agency early-help programmes in high-pressure areas (e.g., homelessness prevention, family support for children at risk of care).
Create a joint outcomes framework for your place aligning health, housing, education and employment indicators.
Invest in data-sharing protocols and analytics capability to identify risk early and target interventions effectively.
Engage communities in co-design through citizens’ panels or participatory budgeting for prevention initiatives.
5) Data, Digital & AI Leadership
What it is
The ability to treat data as a strategic asset, harness digital tools to improve resident experience and productivity, and deploy AI responsibly with strong governance. This competency is about creating a culture where technology is not an add-on but a core enabler of better outcomes, efficiency and trust.
Why it matters now
Digital transformation is no longer optional. The LGA reports that 95% of councils are using or exploring AI, yet many lack clear policies, risk frameworks and skills to manage adoption safely. At the same time, cyber threats are rising, and interoperability remains a challenge across local systems. Leaders must ensure technology investments deliver measurable value, protect residents’ data, and comply with ethical standards.
“Digital leadership is about more than tech it’s about culture, ethics and capability.” LGA Digital Programme
Key dynamics to master in 2026
Data governance and interoperability: Adopt common standards to enable sharing across health, housing and education systems.
Responsible AI adoption: Identify high-value use cases (e.g., automating case notes, speeding EHCP drafting) with human oversight and DPIAs.
Cyber resilience: Implement baseline security controls and incident response plans to protect against breaches.
Skills and capability: Close gaps in data analytics, architecture and cyber security currently among the most critical shortages in local government.
Ask yourself
Do we have a published AI use policy, risk register and governance framework?
Are our digital investments tied to clear productivity and resident experience outcomes?
Do we have cyber resilience plans tested through live exercises?
Are we building internal capability or relying too heavily on external suppliers?
Do next
Adopt Local Digital standards for data and cyber security; publish your AI principles and ethical guidelines.
Launch 2–3 AI pilots targeting real bottlenecks (e.g., social care case-note automation, EHCP workflow) with transparent evaluation and human-in-the-loop safeguards.
Create a digital skills roadmap for your workforce, focusing on analytics, cyber and automation.
Invest in cyber drills and resilience audits to meet NCSC best practice.
Embed digital KPIs into your corporate plan linking tech adoption to measurable service improvements.
6) Devolution, Place-Shaping & Major Programme Delivery
What it is
The ability to translate devolved powers and funding into coherent, integrated strategies for transport, housing, skills, and economic growth and to deliver those strategies through robust programme management. This competency is about moving from negotiation to execution, ensuring that local areas maximise the benefits of devolution deals and regeneration funding.
Why it matters now
The English Devolution and Community Empowerment Bill is accelerating structural change. By 2026, more than half of England will be covered by combined authorities or strategic governance models, with expanded mayoral powers and simplified decision rules. Multi-year funding settlements and capacity-building grants are on the table, but councils must demonstrate readiness to secure and deliver these deals. Failure to build programme capability risks losing investment and credibility.
“Devolution is not just about powers it’s about capacity to deliver outcomes at scale.” Institute for Government
Key dynamics to master in 2026
Integrated place strategies: Align housing, transport, skills and climate plans into a single investment narrative.
Programme management maturity: Establish PMOs with benefits tracking, risk logs and governance clarity.
Decision-making agility: Prepare for majority voting and streamlined scrutiny in combined authority settings.
Cross-boundary collaboration: Work with neighbouring councils and MCAs to avoid duplication and maximise shared infrastructure opportunities.
Ask yourself
Do we have the organisational capacity and governance clarity to deliver a mayoral-scale place strategy?
Are our investment decisions timely, transparent and backed by robust evidence?
Have we mapped interfaces with combined authorities and neighbouring councils to prevent friction?
Are residents and businesses engaged in shaping the vision for their place?
Do next
Stand up a Place PMO with design authority, programme boards and benefits dashboards for all major projects.
Publish a simple governance map showing decision flows, voting protocols and scrutiny arrangements under new structures.
Develop a single investment prospectus for your area linking housing, transport, skills and net zero priorities to funding opportunities.
Run readiness reviews for devolution deals: check capacity, risk management and stakeholder engagement plans.
Engage communities and businesses through visioning workshops and transparent progress updates.
7) Net Zero, Climate Resilience & Just Transition
What it is
The ability to lead local action on climate change reducing emissions, adapting to environmental risks, and ensuring a fair transition that creates jobs, skills and healthier communities. This competency is about embedding sustainability into every decision, from housing and transport to procurement and workforce planning.
Why it matters now
Local authorities are pivotal to achieving the UK’s net zero by 2050 target. Councils influence emissions through planning, housing, transport, and energy systems, yet many report uncertainty around financing and delivery capacity. Extreme weather events and rising energy costs add urgency to adaptation measures. At the same time, the transition must be just supporting vulnerable households and creating green jobs to avoid widening inequalities.
“Climate leadership is now economic leadership those who act early will shape growth and resilience.” LGA Climate Programme
Key dynamics to master in 2026
Corporate vs area-wide emissions pathways: Councils need clear plans for their own operations and for influencing emissions across the wider place.
Financing models: Innovative approaches (e.g., heat networks, retrofit funds, green bonds) are essential to scale delivery.
Integration with economic strategy: Link net zero to skills development, inward investment and local industrial strategies.
Community engagement: Residents must see tangible benefits warmer homes, lower bills, cleaner air to maintain legitimacy.
Ask yourself
Do we have a funded pathway for both corporate and area-wide emissions, with clear milestones and accountability?
Are we aligning climate action with housing retrofit, transport decarbonisation and local skills plans?
Do we have governance structures that integrate climate into all major decisions?
Are we engaging communities and businesses in shaping the transition?
Do next
Publish a Net Zero Delivery Plan with annual progress reporting and clear financing routes.
Integrate climate priorities into your investment prospectus linking green infrastructure to economic growth and job creation.
Work with Local Net Zero Hubs and regional energy partnerships to standardise measurement and unlock funding.
Embed climate criteria in procurement and capital projects make sustainability a default, not an add-on.
Launch community engagement campaigns focused on practical benefits (e.g., lower bills, healthier homes) to build public support.
8) Workforce, Culture & Wellbeing
What it is
The ability to build and sustain a skilled, motivated, and healthy workforce that reflects the diversity of the communities it serves. This competency is about creating an organisational culture where people feel valued, supported, and equipped to deliver in a rapidly changing environment. It also means embedding wellbeing and inclusion as strategic priorities, not optional extras.
Why it matters now
Local government faces acute workforce challenges: ageing demographics, critical skills shortages in digital, data, and sustainability, and rising sickness absence linked to stress and burnout. The LGA warns that without investment in leadership capability and wellbeing, councils risk productivity decline and talent attrition. At the same time, equality, diversity and inclusion (EDI) expectations are higher than ever leaders must demonstrate progress, not just intent.
“A rapidly changing workforce, together with continued funding pressures, pose a whole new set of challenges for 21st-century leaders and managers.” LGA Leadership Framework
Key dynamics to master in 2026
Skills strategy: Close gaps in data analytics, cyber security, programme delivery and environmental sustainability.
Leadership capability: Equip managers to coach, empower and lead hybrid teams effectively.
Wellbeing and resilience: Address stress drivers through workload design, flexible working and mental health support.
Inclusive culture: Move beyond compliance to proactive inclusion neurodiversity, ethnicity, gender and socio-economic diversity.
Employer Value Proposition (EVP): Articulate what makes your council a great place to work in a competitive market.
Ask yourself
Are we actively closing critical skills gaps with targeted development and recruitment?
Do our managers have the confidence and tools to lead inclusively and support wellbeing?
Is our EVP compelling and visible to prospective candidates?
Are we measuring and improving workforce diversity and engagement?
Do next
Launch a skills roadmap focused on digital, sustainability and leadership capability; link to career pathways and apprenticeships.
Embed coaching and mentoring programmes for managers; use frameworks like Solace AMPlify for leadership development.
Invest in wellbeing interventions with measurable impact e.g., resilience training, mental health champions, flexible working pilots.
Publish diversity and inclusion dashboards and set clear improvement targets; engage staff networks in shaping action plans.
Refresh your EVP to highlight flexibility, purpose and development opportunities; promote it through recruitment campaigns.
9) Community Engagement & Trust-Building
What it is
The ability to create meaningful, two-way engagement with residents and stakeholders that goes beyond consultation and builds genuine trust. This competency is about listening deeply, involving communities in shaping decisions, and demonstrating transparency in how input influences outcomes.
Why it matters now
Public trust in institutions remains fragile. Research shows councils are often more trusted than central government, but that trust is conditional and can erode quickly when decisions feel imposed or opaque. The Edelman Trust Barometer and LGIU polling highlight a growing expectation for participatory governance and visible accountability. In an era of financial constraint and tough trade-offs, legitimacy depends on how well leaders involve residents in decision-making and communicate the “why” behind choices.
“Trust is earned through transparency and responsiveness people need to see that their voice matters.” LGIU Local Democracy Report
Key dynamics to master in 2026
Deliberative engagement: Citizens’ assemblies, participatory budgeting and co-design sessions for major policies.
Digital inclusion: Use online platforms for engagement but ensure accessibility for all demographics.
Feedback loops: Show residents how their input shaped decisions “you said, we did” reporting is critical.
Crisis communication: Build capacity for rapid, honest communication during emergencies or contentious decisions.
Ask yourself
Are we using deliberative methods for high-impact decisions, or relying on traditional consultation?
Do residents see clear evidence that their input influences outcomes?
Are our engagement channels inclusive and accessible to underrepresented groups?
Do we measure trust and satisfaction regularly and act on findings?
Do next
Establish a Residents’ Panel to provide ongoing input on priorities and service design.
Publish engagement impact logs (“you said, we did”) alongside major decisions.
Pilot participatory budgeting for community-led projects start small and scale.
Invest in digital engagement tools with multilingual and accessibility features; combine with in-person forums for inclusivity.
Run quarterly trust pulse surveys and share results publicly with action plans.
10) Personal Resilience & Reflective Practice
What it is
The ability to sustain performance under pressure, adapt to uncertainty, and maintain perspective in a demanding leadership environment. Resilience is not about “toughing it out” it’s about managing energy, setting boundaries, and creating space for reflection and learning. Reflective practice ensures leaders grow from experience rather than repeat mistakes.
Why it matters now
The complexity of local government leadership in 2026 financial strain, political volatility, scrutiny, and rapid change creates a high-risk environment for burnout. Research from the LGA and NHS leadership programmes shows that resilience and reflective habits are strongly correlated with effective decision-making and team wellbeing. Leaders who neglect this competency risk poor judgement, reactive behaviours, and diminished credibility.
“Resilient leaders are not those who never feel pressure they are those who know how to recover, reflect and recalibrate.” Solace Leadership Commentary
Key dynamics to master in 2026
Energy management: Recognise personal limits and design recovery strategies (sleep, exercise, downtime).
Reflective learning: Use structured reflection (journals, coaching, peer groups) to extract lessons from successes and failures.
Psychological safety: Model openness about challenges to encourage honesty and learning in teams.
Support networks: Build trusted peer and mentor relationships for challenge and perspective.
Ask yourself
Do I have regular time set aside for reflection and strategic thinking?
Am I modelling healthy boundaries and wellbeing for my team?
Do I seek feedback and challenge from peers and mentors?
Do I have a plan for maintaining resilience during crises?
Do next
Schedule quarterly reflective practice sessions individually and with your leadership team.
Engage a coach or mentor for structured development and accountability.
Create a personal resilience plan (covering wellbeing habits, stress triggers, and recovery strategies).
Introduce team debriefs after major projects or crises to embed collective learning.
Use 360-degree feedback tools aligned to this competency framework to identify blind spots.
Your Leadership Toolkit for 2026 To help you turn insight into action, we’ve created three practical resources you can download and use immediately:
Leadership Competency Scorecard: Assess yourself against ten critical competencies, record evidence, and set actions.
90-Day Action Plan Template: A structured guide to prioritise three focus areas, define measurable outcomes, and build delivery momentum.
These tools are designed to make your leadership journey tangible helping you reflect, plan, and deliver with confidence. Leading Local in 2026: Your Journey Starts Here.
Closing Thought
Adaptive excellence is not just for Chief Executives it’s the defining quality for anyone in a leadership role in local government today. The challenges of 2026 demand leaders who can flex, learn and lead with courage in an environment of constant change. Whether you manage a frontline service, lead a department, or shape strategy across an entire council, your ability to adapt will determine your success.
Adaptive excellence means more than reacting to pressures it’s about anticipating them and building resilience into your organisation and yourself. It calls for political partnership that respects democratic accountability, a relentless focus on prevention to break cycles of crisis, and a commitment to productivity that goes beyond cost-cutting to deliver real outcomes for residents. It requires confidence in data and digital innovation, not as a technical add-on but as a core enabler of better services. And above all, it demands visible integrity making decisions transparently and engaging communities in ways that build trust.
This is leadership anchored in a healthy, skilled workforce and authentic resident engagement. It’s about creating cultures where wellbeing and inclusion thrive, where teams feel empowered to innovate, and where residents see tangible improvements in their lives. In short, adaptive excellence is a living framework a mindset and a practice that evolves with the pressures of the day and positions local government as a trusted, transformative force in society.
Your journey starts now. Reflect on where you stand, commit to the actions that matter, and lead with purpose. Because in 2026, leadership isn’t about holding a title it’s about making a difference.
