What Council Unitarisation Means for Neighbourhood Services

The Government’s English Devolution White Paper has triggered a profound shift in the structure and governance of local authorities across England. By accelerating the pace of devolution and introducing a new wave of council unitarisation, the White Paper signals a fundamental reimagining of how local services are designed, delivered, and governed.

This transformation is not just administrative it’s operational, cultural, and strategic. It will affect how councils engage with residents, how services are funded and prioritised, and how local authorities collaborate across boundaries.

Mo Baines, Chief Executive of the Association for Public Service Excellence (APSE), outlines the key challenges that lie ahead from reconciling complex service delivery models and aligning workforce practices to managing fleet decarbonisation and safeguarding neighbourhood service budgets. Crucially, she argues, early and strategic planning will be essential to ensure that the new authorities are not only functional on day one, but also fit for the future.

A New Era for Local Governance

The publication of the English Devolution White Paper in December 2024 was widely anticipated. Its emphasis on transferring power from Whitehall to local areas through the creation of new combined and strategic authorities was in line with the Government’s broader commitment to decentralisation. What was less expected, however, was the scale and speed of proposed unitarisation.

The plan to replace England’s two-tier system of county and district councils with single-tier unitary authorities represents one of the most significant structural reforms in decades. While the Government has ruled out a ‘big bang’ approach, the direction of travel is clear. Many areas are now entering negotiations to determine what their new governance arrangements will look like, with final decisions resting with the Secretary of State.

Yet even in this early phase, the implications for frontline services are becoming apparent. County councils continue to face intense financial pressure from statutory services such as adult and children’s social care. Meanwhile, district councils often responsible for neighbourhood services like parks, waste collection, and street cleansing are concerned about the future of their already limited budgets. The risk is that, in the process of structural reform, the services most visible to residents could be deprioritised or destabilised.

Securing Neighbourhood Services in Transition

Neighbourhood services are the everyday touchpoints between councils and communities. They shape how residents experience local government whether it’s the cleanliness of a street, the condition of a local park, or the reliability of waste collection. As such, they are vital to public trust and civic pride.

In the context of unitarisation, these services face a dual challenge: maintaining continuity during the transition and adapting to new governance and funding models. APSE is already working with member councils to map out the risks and opportunities, helping them prepare for the operational realities of the new authorities. The aim is to ensure that neighbourhood services are not only protected but also positioned for long-term improvement.

4. Coordinating Fleet Strategy and Decarbonisation

Fleet management is a cornerstone of neighbourhood service delivery whether it’s waste collection, grounds maintenance, or street cleansing. In the context of unitarisation, aligning fleet strategy across merging councils is a complex but critical task. The added imperative of decarbonisation makes this even more challenging.

Councils are currently at different stages in their journey toward low-emission fleets. Some have invested in electric or hydrogen-powered vehicles, supported by local infrastructure and pilot programmes. Others have adopted a more cautious approach, citing concerns around vehicle range, payload capacity, upfront costs, and the availability of charging or refuelling infrastructure. These disparities can create tension when authorities merge.

Without a coordinated approach, councils risk:

• Procurement inefficiencies, with different standards and suppliers across departments

• Infrastructure gaps, where some depots are equipped for electric fleets and others are not

• Policy misalignment, especially around carbon targets, fleet replacement cycles, and funding priorities

To address these challenges, merging councils should develop a joint fleet decarbonisation strategy that includes:

• A comprehensive audit of existing fleet assets, infrastructure, and contractual obligations

• Shared procurement frameworks to leverage economies of scale and ensure consistency

• Phased transition plans, tailored to service needs and local geography

• Investment in depot upgrades, including charging stations and maintenance facilities

• Staff training and engagement, ensuring operatives are equipped to work with new technologies

Decarbonisation is not just a technical issue it’s a strategic one. It requires cross-departmental collaboration, long-term financial planning, and a clear understanding of how fleet choices impact service delivery, environmental goals, and public perception.

Protecting Neighbourhood Service Investment

Neighbourhood services are often the most visible and valued by residents, yet they are also among the most vulnerable during structural reform. In newly formed unitary authorities, these services will compete for funding against statutory obligations such as adult social care, housing, and SEND provision areas that typically dominate budget discussions.

To safeguard neighbourhood services, councils must adopt strategic funding approaches that recognise their preventative value and community impact. APSE recommends several key strategies:

a. Baseline Budget Mapping

Conduct a detailed analysis of current spending across predecessor councils. This helps identify disparities, understand historical investment levels, and establish a fair starting point for future allocations.

b. Outcome-Based Budgeting

Shift the focus from inputs (e.g. number of bins collected) to outcomes (e.g. resident satisfaction, environmental impact). This allows neighbourhood services to demonstrate their contribution to wider council goals, such as public health, climate resilience, and community cohesion.

c. Ring-Fenced Investment

Where possible, establish protected funding streams for core neighbourhood services. This ensures continuity and prevents these services from being eroded during budget negotiations.

d. Invest-to-Save Modelling

Use financial modelling to show how investment in neighbourhood services can reduce demand on more expensive interventions. For example, well-maintained parks can support mental health and reduce pressure on health services; effective street cleansing can improve perceptions of safety and reduce anti-social behaviour.

e. Community Engagement and Co-Design

Involve residents in service design and prioritisation. This not only builds public support but also helps councils target resources where they will have the greatest impact.

f. Cross-Service Collaboration

Encourage collaboration between neighbourhood services and other departments (e.g. public health, housing, education) to unlock joint funding opportunities and shared outcomes.

Planning for Success

Unitarisation presents a rare opportunity to rethink how local services are delivered, funded, and experienced. But it also demands careful planning, inclusive leadership, and a commitment to protecting what matters most to communities. Neighbourhood services must be part of the strategic conversation from the outset. Councils should:

• Map existing service models and funding levels

• Engage frontline staff and service managers

• Align policies, assets, and operational practices

• Develop shared strategies for fleet, workforce, and infrastructure

• Build a compelling case for sustained investment

With the right approach, unitarisation can be a catalyst for innovation not just in governance, but in the quality, equity, and sustainability of local services.