Local government in England is undergoing its most significant reorganisation in decades. Across the country, councils are merging, combined authorities are forming, and new mayoral positions are being created. For charities, these changes bring both uncertainty and opportunity.

This major restructuring is likely to impact how you, as charity leaders, interact with your local government. Funding streams that currently flow through district councils may shift to new combined authorities. Commissioning priorities will be set at a regional rather than a local level. The officers and councillors you've built relationships with over the years may move on or see their roles change entirely.

With so much on your plate already, the prospect of major changes to your local authority is likely to be a daunting one. However, with enough forward thinking and the right approach, you can turn this transition into an opportunity for your charity. In this guide, you'll find expert insights from our team at Cranfield Trust to help you prepare for whatever local authority changes lie ahead.

Understanding what's happening
In many cases, devolution involves two processes happening alongside each other. The first is the creation of combined authorities with elected mayors, bringing new powers, priorities, and funding streams to regions. The second is local government reorganisation: the merging of district councils into larger unitary authorities.

Stephen Cahill, Regional Manager at Cranfield Trust with experience in local governance, explains the challenge: "From a charity perspective, what they're facing is huge uncertainty because established relationships are potentially breaking down, and there are no ready answers."

The difficulty is compounded by the fact that local authorities themselves are still working through what these changes mean. "It's contested space at the moment," Stephen notes. "Local governments don't necessarily know all the answers, and central government has an end goal in sight, but they've still got to figure out the steps to get there."

At Cranfield Trust, we've seen a significant increase in the number of organisations seeking our support amid this uncertainty. Will contracts be renewed? Will commissioning priorities change? Will the relationships built over years with council officers survive the transition to new, larger structures?

The real impact on charities
For many charities, their identity and purpose are tied to a specific local area. They know their community, they've built relationships with local commissioners, and their services are designed around local needs. When local authorities merge, that connection to a place becomes complicated. A charity that has delivered services for one borough may suddenly find itself operating within a much larger combined authority, one with different priorities, new decision-makers, and contracts that span a wider area.

There's also genuine concern that larger authorities may favour larger organisations. Stephen explains: "Big government likes big business. There's certainly an element of that: bigger invariably becomes better, or what is perceived to be better."

This creates a particular challenge for smaller, locally-focused charities. Where previously they might have bid for contracts worth £50,000, the new landscape may see contracts consolidated at £500,000 or more. Without the capacity to deliver at that scale, smaller organisations risk being shut out entirely.

From a trustee's perspective, Stephen believes dealing with uncertainty has to be high on the agenda. "What is the likely disruption or risk to the charity? That's the first and foremost question that should be in every single agenda. They need to do some scenario planning, and they need to really look at risk management."

Despite the challenges, Stephen believes it's not as bleak as it may first seem. "There may be different opportunities emerging," he suggests. "It's about looking for novel solutions and different combinations of services." The charities that thrive will be those that can identify and fill gaps in provision as the new structures bed in.

How to successfully navigate these changes
Sue Elder, Regional Manager at Cranfield Trust with plenty of experience supporting charities through major changes, identifies three common factors in organisations that successfully navigate uncertainty: clear vision, clear communication, and flexibility.

"Having clarity around the end point of change is crucial," Sue explains. "Clearly articulating: what are we seeking to change? What external factors are prompting us to change? What are the potential benefits? Given that implementing change can be challenging, are we prepared to endure the 'pain' that change may involve in order to reap the rewards?"

Communication, she emphasises, is not a one-off event but a constant throughout periods of change, and it must be two-way. "Listening to people's concerns or challenges that may present themselves along the way and addressing them. Not everyone embraces new processes or systems at the same rate; some adapt more easily than others."

Willingness to adapt while keeping focus on the end goal is the third crucial element. "Blindly pursuing a plan at all costs is likely to reduce the likelihood of success," Sue notes.

"Sometimes it may be necessary to take one step back, or stop and review, in order to take two steps forward."

Practical steps for charity leaders
Don't wait for change to happen to you. Sue's advice is unequivocal: "Don't put your head in the sand and wait until changes are 'done to you'. Be proactive and engage with the local authority to gain information, raise questions or concerns, and as far as possible, be part of decision-making."

Build relationships now. We're hearing from charity leaders in our community that strong working partnerships with local authorities have been critical during this period of uncertainty. Those relationships enable charities to access up-to-date information and ensure their voices are heard as decisions are made.

Plan for multiple scenarios. With outcomes uncertain, charity boards should consider many different possibilities. Sue recommends exploring alternative scenarios, assessing what each might look like and what would be required to make them work. "The important thing is to discuss how the changes might impact your organisation and plan for eventualities, revisiting the options as the process develops," she says.

Follow the money. Stephen offers a simple but powerful piece of advice: "Follow the pounds. Where's the money coming from? What's happening to that money and where's it going? Just keep following the pounds." Understanding how funding flows will change under new structures is essential for planning.

Consider collaboration seriously. Stephen sees devolution as forcing a necessary conversation: "It's a bit like the tide going out; it's not long before the rocks start coming up. Now is the time to start getting involved in the collaboration debate." This might mean exploring alliances with similar organisations, partnering with complementary charities, or investigating a formal merger.

Get your house in order. At Cranfield Trust, we recommend that any organisation ensures its governance is in good shape ahead of any major change, collaboration, or merger. Sound finances and strong governance make you a more attractive partner and more resilient to shocks.

Develop procurement skills. Stephen highlights a practical gap: "Local charities need to really mug up on procurement skills. It's not rocket science, but it's something they need to start turning their mind to now." Understanding how local government commissioning works will be essential for securing contracts in the new landscape.

As Sue summarises: "Control the controllables. Do what you can to respond to the situation and put your organisation in the best position to be resilient. COVID was a fine example; those organisations that adopted a 'can-do' attitude and adapted to circumstances were the ones that thrived."

What support is available?
Charity leaders navigating devolution don't have to do it alone. Support is available from multiple sources, and those who lean on these resources will be better placed to weather the uncertainty.

Your local authority. The quality of support from local authorities varies, but many are running webinars, consultation sessions, and engagement events to help charities understand and prepare for upcoming changes. Charity leaders who have engaged with these opportunities have told us they’ve been invaluable, both for accessing information and for ensuring their voices are heard in the decision-making process.

National bodies. Several national organisations offer guidance and resources to help charities navigate periods of change. NCVO (National Council for Voluntary Organisations) provides practical guidance on everything from governance to public procurement, and regularly publishes insights on how policy changes affect the sector. ACEVO (Association of Chief Executives of Voluntary Organisations) offers leadership support and policy guidance for charity leaders. Both organisations have been tracking the implications of devolution and local government reorganisation for charities.

Cranfield Trust. We provide free management support to charities navigating these challenges. Our services include mentoring from experienced professionals who can help you think through strategic options, governance reviews to ensure your organisation is fit for purpose, and facilitation support for conversations with potential partners or merger candidates.

In addition to our consultancy and mentoring projects, our library of webinars includes resources on organisational change, collaboration, and 'investability', helping your charity to put its best foot forward. We also offer plenty of free reading resources to support charity leaders.

The landscape is changing, but charities that prepare, collaborate, and remain adaptable will find ways not just to survive but to thrive. If your organisation is facing uncertainty around local authority changes, we're here to help.

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