LGR will test every council’s estate. Here is where to start.

Local Government Reorganisation will reshape how many councils operate over the coming years.

The Government’s intention is to simplify the current two-tier system in many parts of England by creating larger unitary authorities capable of delivering services through a single organisation. The aim is to reduce fragmentation, improve governance, create efficiencies and support greater devolution.

That all sounds straightforward on paper. In practice, it rarely is.

These changes are taking place while councils are already managing sustained financial pressure, rising service demand and increasing scrutiny around value, governance and delivery. Against that backdrop, property and facilities management cannot be treated as a side issue. Estates, contracts, systems and operational teams will all sit close to the heart of whether reorganisation delivers its intended benefits or creates further strain.

For many councils, the time to prepare is now, not when final decisions are announced.

Start with the data

If councils are going to reshape how services are delivered, they first need a clear view of the estate they already have.

That means up-to-date and reliable records of what is owned, what is occupied, how buildings are being used, what they cost to run, what condition they are in and what obligations sit against them. Utilisation data, asset values, maintenance liabilities, utilities consumption, tenancy details and occupation arrangements all matter.

Without that baseline, it becomes much harder to make informed decisions about rationalisation, consolidation, co-location, capital receipts or future service models. It also slows down transformation because senior leaders end up making decisions on partial or inconsistent information.

In our experience, councils often hold property-related data across multiple teams and systems, each with its own version of the truth. Property, FM, finance, environmental teams and individual service departments may all hold records on the same building, yet key information does not always match. Even basic details such as naming conventions, occupancy, running costs and responsibility lines can differ.

LGR will expose those gaps quickly. Councils that start cleaning, aligning and centralising data now will be in a far stronger position when implementation accelerates.

Review third-party contracts before they become a problem

Many local authorities will have third-party service contracts that were designed for the organisation as it currently exists, not for the structure that may emerge through reorganisation.

FM contracts, property services arrangements, maintenance contracts and outsourced support services may all require review. Some may need to be split between successor authorities. Others may need renegotiation, novation or reprocurement. Some may contain pricing models or service structures that no longer make sense once portfolios or responsibilities are reshaped.

A central, accurate contract register becomes essential here. Councils should know what contracts exist, when they expire, what services they cover, what termination and change provisions apply, what assets or locations sit within scope and how services are priced.

This is not just a legal tidy-up exercise. It is about protecting service continuity and avoiding a scenario where reorganisation goes live but key contracts no longer align with operational reality.

There is also a bigger question underneath this. LGR may create an opportunity to rethink delivery models altogether. Some councils may find there are opportunities to consolidate services, move towards a total facilities management approach, increase self-delivery in selected areas or explore shared service models that better support the objectives of the new authority.

Those options need evaluating early. Leaving them too late usually means carrying legacy arrangements further forward than anyone intended.

Create a plan for systems, not just structures

One of the most underestimated aspects of reorganisation is systems alignment.

Helpdesks, CAFM systems, property databases, compliance platforms, finance systems and reporting tools all need to work together if the new organisation is going to operate effectively. Yet many councils are still managing estates and FM information across disconnected systems, spreadsheets and service-level workarounds.

If data sits in multiple places and different teams rely on different records, decision-making becomes slower and confidence in that data drops. That has obvious implications for governance, reporting, auditability and operational control.

LGR gives councils a strong reason to tackle that fragmentation. The goal should be to move towards a clearer single source of truth for the estate, with agreed ownership of data, common definitions and systems that support consistent reporting and decision-making.

This does not necessarily mean replacing everything at once. But it does mean having a plan for how systems will be aligned, what data needs to migrate, what standards will apply and who is responsible for maintaining data quality going forward.

Do not overlook the people dimension

It is easy for discussions around LGR to become heavily structural, commercial and programme-led. But transition succeeds or fails through people.

Someone needs to lead the transition. Workstreams need clear ownership. Decision-making routes need to be understood. Communication needs to be steady and credible, especially where uncertainty is high.

For property and FM functions, there may be major questions around team design, reporting lines, consultation, skills retention and leadership capacity. Staff transfers may require careful handling. Different organisations may bring different cultures, terms and conditions, working practices and service expectations. Over time, these differences need to be managed in a way that protects capability and avoids losing key operational knowledge.

Councils should also be honest about whether internal teams have the capacity to manage both day-to-day service delivery and the additional demands of reorganisation. In many cases, they may need external support in programme mobilisation, change management, commercial review or data improvement simply to keep momentum without overstretching existing teams.

Focus on implementation, not just intent

The ambition behind LGR will be judged not by the announcement, but by what happens afterwards.

That means councils need to think beyond the formal transition and consider how benefits will actually be realised once new arrangements go live. Efficiency savings, portfolio rationalisation, improved service integration, shared occupation models, renegotiated contracts and better use of public assets do not happen automatically. They need planning, sequencing, resources and follow-through.

It also means being realistic about the cost of change. Reorganisation brings opportunity, but it also brings implementation costs. Councils should be testing whether budgets properly reflect the effort involved in transition, systems work, contract change, data improvement, consultation and programme support.

Optimism is not a delivery strategy.

Getting ready now

For councils affected by Local Government Reorganisation, the message is simple. Waiting for every detail to be confirmed may feel cautious, but it can leave too much groundwork too late.

There is sensible preparation work that can and should begin now. Cleaning property data. Reviewing contracts. Mapping systems. Identifying workstream leads. Pressure-testing delivery models. Understanding skills gaps. Building a realistic view of transition costs and post-go-live benefits.

These are not peripheral tasks. They are central to whether reorganisation strengthens operational performance or destabilises it.

Landmark & Associates are RICS-accredited facilities management consultants specialising in estates strategy, mobilisation and procurement. We have supported public and private sector organisations including East Sussex, Tendring District Council, the Royal Borough of Kensington & Chelsea, Elmbridge Borough Council and Essex County Council in navigating complex change, building robust business cases and helping turn approved plans into workable delivery.

If your authority is preparing for LGR and would value an experienced, independent view of the property and FM implications, we would welcome a conversation. The earlier these issues are addressed, the more options councils tend to have.