Navigating today’s pressures in local government: how councils can steer change with confidence

Local authorities across the UK are facing financial and operational pressures that they have never faced before. According to Grant Thornton’s recent report, ‘The pressures facing UK councils,’ years of constrained spending power, rising demand in social care, and shrinking reserves have left many councils close to breaking point.

In my work with local government, I see the same pattern repeating: the challenge is no longer about incremental improvement. It is about transformation. Councils need new ways of working that deliver more for less, while protecting essential services. This means visibility, control, and confidence in delivery.

Understanding the key pressures facing UK councils

Grant Thornton’s data shows that over the five years from 2018 to 2023, core spending power increased by just 4%, while council spending rose by around 8% to meet growing demand.

Much of this growth comes from social care. Adult social care costs rose 9% in real terms, while children’s social care saw an increase of 18% nationally and up to 22% in some regions. These are demand-led services, meaning councils have little flexibility to reduce costs without reforming the way services are delivered.

To manage the shortfall, many councils are redirecting funds away from discretionary services such as libraries, parks, and civic amenities. The result is a growing divide between what councils need to deliver and what communities are expecting.

At the same time, councils are drawing heavily on reserves. While local authorities across England hold around £23 billion in reserves, the distribution is uneven. Councils most at risk often have the least available. Grant Thornton estimates that by 2028/29, 41% of councils could face financial failure without new income or further cuts.

Transformation isn’t optional

The report is clear that urgent action is required. Financial resilience will depend on councils investing in change programmes that cut cost, manage demand, and improve delivery outcomes.

Grant Thornton cites councils achieving returns of up to 3:1 on transformation investments within two years. In one case, an investment of £14.5 million generated £49.3 million in savings. Transformation works.

But transformation is not one-size-fits-all. Each authority must find a balance between short-term recovery and long-term reform. Some will need centrally led turnaround programmes; others will need targeted support to build internal capability. Digital transformation and strong programme management are central to both.

How Verto helps local government deliver change

At Verto we work with councils across the UK to help them deliver transformation with confidence. Our cloud-based programme, portfolio, and project management platform gives councils the visibility, control, and collaboration they need to manage complexity and deliver results.

Here’s how Verto directly supports the challenges highlighted in Grant Thornton’s report:

1. Unified visibility and real-time data – With tight budgets, every decision counts. Verto provides clear dashboards and reporting tools that bring together programme and project data across the organisation. Leaders can see instantly where resources are being used, track benefits, and identify risks early.
2. Stronger control and assurance – As councils face growing financial risk, governance and compliance become critical. Verto helps manage risks, issues, dependencies, and benefits in one place, ensuring accountability and early intervention before problems escalate.
3. Strategic alignment and prioritisation – When capacity is limited, councils need to know every project aligns with their strategic goals. Verto enables leaders to link initiatives directly to outcomes, so they can prioritise what delivers the most value for residents and taxpayers
4. Delivery at pace and scale – Grant Thornton’s research shows the highest ROI comes from well-executed change programmes. Verto helps councils plan, resource, and deliver transformation faster through shared workflows, collaboration tools, and automated reporting.
5. Standardisation and capability building – Many councils still manage projects through spreadsheets or siloed systems. Verto replaces those inconsistencies with a single, scalable approach that builds internal capability and supports continuous improvement across teams and directorates.

Building financial resilience through better delivery

The pressures facing local government will not ease overnight. But the Grant Thornton report makes one thing clear: transformation is possible, and investment in change pays off.

For councils, the challenge now is to move from firefighting to forward planning. By adopting a platform like Verto, local authorities can strengthen governance, reduce duplication, and make better use of limited resources.

The result is not just efficiency. It’s confidence. Confidence that the council can deliver on its commitments, adapt to change, and continue to serve its communities effectively.

If your council is looking to stabilise finances, improve visibility, and accelerate transformation, Verto can help. Talk to me today or visit our Local Gov page to learn how we’re supporting local government across the UK.