Welcome to this month's edition of Trowers Local Government Matters newsletter.
It has been an eventful summer for local government, and the landscape is changing again. The Government has continued to set out an ambitious programme of reform, with devolution and the growing role of mayoral strategic authorities emerging as some of its clearest priorities. But the recent decision to pause and review much of the local government reorganisation programme has added a new and important dimension.
Following updated legal advice, decisions affecting Essex, Hampshire, Norfolk and Suffolk have been withdrawn, while a further 14 areas are now subject to review. Jim McMahon has also asked affected councils to cease implementation work for the time being, while Government considers not only the legal robustness of the process but also the “scale and pace of the programme more broadly”.
That matters because this increasingly looks like more than a procedural reset. As the Government develops its wider thinking on devolution and the “rewiring” of the state, there is a real possibility that the relationship between local councils, unitary authorities and strategic mayoral bodies will be reconsidered as part of a broader settlement.
Against that backdrop, the September edition of Local Government Matters looks at both the big picture and the practical issues landing on desks now. We explore what councils engaged in LGR should do now, Andy Burnham’s vision for “Rewiring Britain” and the potential of fiscal devolution; examine important developments under the Procurement Act, including conflicts, insourcing and the courts’ emerging approach; and consider the changing landscape for employment rights.
We also turn to two issues that are rapidly becoming inseparable from the future of public services: AI and cyber resilience.
There is a great deal changing, and some understandable uncertainty. But there is also an opportunity to think more fundamentally about how power, accountability and public services should be organised in a more devolved system.
I hope you enjoy the edition, and as ever, we would be delighted to hear your views.
Local government reorganisation: what should councils do now?
The Government’s decision to pause and review the local government reorganisation programme represents a significant change of direction for councils across England.
The decisions taken in March for Essex, Hampshire, Norfolk and Suffolk have been withdrawn following updated legal advice, while the 14 decisions announced in July are now under review. Cambridgeshire and Peterborough and West Sussex, where decisions had not yet been taken, are also within the review. Surrey is expressly excluded because the new East and West Surrey councils are already established in law.
Devolution and Local Government Reform hub
On our dedicated hub, we've added our latest series of podcasts, interviews and articles, which you can explore below.
Rewiring Britain: what Andy Burnham's vision could mean for public sector reform
Andy Burnham’s vision for “Rewiring Britain” champions greater devolution, giving local leaders more control over jobs, skills, housing and economic growth.In this article, Amardeep Gill and Chris Plumley explore how stronger place-based governance and closer collaboration between national and local government could reshape public sector reform and drive long-term regional growth.
Fiscal Devolution: the money and the power
Fiscal devolution could mark the biggest shift in English local government funding for a generation, giving mayoral authorities greater control over the money they raise and spend. This article explores how proposals to retain a share of local business rates and income tax could reshape regional growth, strengthen local decision-making, and redefine the relationship between central and local government.
For all of this and more, from understanding the legislative detail to managing its practical impact, explore our resources on our hub by clicking the button below. Get in touch to discuss how these changes may affect your organisation.
Latest insights on procurement
How are the Procurement Act 2023 conflicts provisions affecting procurement practice?
When the Procurement Act 2023 ("the Act") came into force, the conflicts of interest regime was one of the areas that attracted significant attention.
This article looks at what those provisions mean in practice, particularly in light of the Government Commercial Function's Guidance on Conflicts of Interest.
PPN 024 – The Public Interest Test and Insourcing Strategy
This article explores PPN 024, a new Cabinet Office policy that will require certain public sector bodies to assess whether services should be delivered in-house before launching procurements from April 2027. It outlines the new Public Interest Test, insourcing strategy requirements, and the practical steps organisations should take now to prepare for the changes.
Two years on: the agency model's rise in local authority leisure services
Two years after HMRC’s landmark VAT ruling on local authority leisure services, the agency outsourcing model is gaining significant traction across the sector. This article examines how councils and operators are using the model to unlock VAT efficiencies, navigate procurement considerations, and reshape the future of leisure service delivery.
Can you sort your grants from your public contracts?
The Procurement Act 2023 has reignited debate around the distinction between grants and public contracts, an issue with significant procurement, VAT and compliance implications for public bodies. This article explores where the line is drawn, the factors authorities should consider when classifying funding arrangements, and why getting it wrong can carry substantial legal and financial risks.
A first look at the courts’ approach to automatic suspension under the Procurement Act 2023
The first court ruling on automatic suspension under the Procurement Act 2023 provides important insight into how procurement challenges may be handled going forward. This article examines the landmark ParkingEye decision, highlighting the court’s greater focus on public interest and what the new approach could mean for contracting authorities and suppliers involved in procurement disputes.
Employment Rights Act
HR Law hub
Our hub provides updates, ensuring you’re always informed about legislative shifts, landmark cases, and emerging trends.
Trowers Tuesday webinars - Summer of inclusivity
Our ever-popular ‘Summer of Inclusivity’ series, featured an engaging lineup of inclusion-focused topics. Across the four sessions, we shared legal insights and thought leadership on how employers can meaningfully support their employees and create an inclusive workplace culture. We were also joined by a number of fantastic guest speakers, who contributed valuable expertise and practical experience throughout the series.
The removal of the unfair dismissal cap - what employers need to know
Major changes to the unfair dismissal regime are set to take effect from 1 January 2027, with the qualifying period reduced to six months and the cap on compensatory awards removed. This article explores the potential impact on employers, the increased risks of claims and higher awards, and the practical steps organisations should take now to prepare.
Trade union rights of access coming soon!
New trade union workplace access rights are set to come into force on 30 October 2026, bringing significant new obligations for employers. This article outlines the proposed framework, including how access requests will operate, the role of the CAC, potential penalties for non-compliance, and the practical steps organisations should take now to prepare.
Safe and Ethical AI - our latest updates
As AI continues to reshape business and public services, we have created a dedicated space where we've brought together all of our insights, analysis and practical guidance from this month and beyond, diving into different aspects on one of the most important questions facing organisations today.
You can catch up on our latest insights below.
No body to blame: AI agents, legal personhood and the accountability gap
As AI technology advances, questions around accountability and legal responsibility are moving from theory to reality. This article explores the concept of AI legal personhood, the emergence of “non-human corporations”, and the challenges these developments could pose for established legal and regulatory frameworks.
When the test goes wrong: why guardrails are so important for AI usage
Recent incidents involving leading AI developers have highlighted the risks that can arise when AI systems operate beyond their intended boundaries. This article explores the growing legal, governance and cybersecurity challenges associated with AI adoption, and explains why robust guardrails, oversight and supplier accountability are essential for organisations deploying AI technologies.
Read the article here.
The Big Debate - should AI agents have legal personhood
Explore one of the most provocative questions facing the future of AI at Trowers & Hamlins' upcoming Big Debate during Birmingham Tech Week. Through a lively panel discussion, audience Q&A and interactive vote, experts will debate whether increasingly sophisticated AI agents should ever be granted legal personhood, examining the legal, ethical and commercial implications of a rapidly evolving technology.
Latest cyber and technology insights
Cyber Security Breaches Survey 2026
The latest Cyber Security Breaches Survey reveals that while the number of reported cyber incidents has stabilised, organisations remain exposed to significant risks due to weaknesses in governance, planning and supply chain management. This report highlights the key cyber threats facing businesses and charities today, and offers practical insights on strengthening resilience in an increasingly complex digital landscape.
Tech Talks - a conversation with Matthew Evans, techUK
In the second episode of our Tech Talks podcast, Partner Charlotte Clayson is joined by Matthew Evans, COO and Director of Markets at techUK, to discuss his perspective on the role of technology across key sectors, and his insights into the future of the UK tech industry.
Trust is harder to rebuild than data: lessons from the UK Biobank incident
The UK Biobank data incident serves as a powerful reminder that trust is one of an organisation’s most valuable assets. This article explores the governance, regulatory and reputational lessons arising from the alleged misuse of sensitive health data, and highlights why robust controls, accountability and transparency are essential to maintaining public confidence in large-scale data initiatives.
