11/09/2025
Welcome to the October edition of Local Authority View, an update summarising recent Government publications, legislation, cases and other developments relevant to those involved in the local authority sector.
This month, we have covered the following:
- LGR - Risks and opportunities in respect of corporate assets
- The urban district council reinvented
- Challenges for a local authority prosecutor
- Removing barriers to subsidies for arts and culture
- Devolution, Local Government Reorganisation and district energy
- The double-edged sword of highways data
LGR - Risks and opportunities in respect of corporate assets
While Local Government Reorganisation is aimed at streamlining governance and reducing duplication, it also presents both significant opportunities and risks for managing corporate assets. As councils merge or split, it is crucial for authorities to evaluate their interests in companies & joint ventures, assessing value, liabilities and future governance.
With transfer regulations not offering sale or indemnity protections, careful due diligence is essential before assets are vested in successor councils.
The urban district council reinvented
There is a growing debate between the UK Government and local councils over how to maintain local representation following Local Government Reorganisation (LGR). Some merging authorities are creating new local councils to preserve their services and democratic representation, while the Government favours neighbourhood governance within councils, citing financial and central control concerns.
Large urban local councils are now beginning to be formed, some with significant powers and influence. This raises questions about the future structure of local government, as councils consider whether to act now or wait for the outcome of future governance legislation.
Challenges for a local authority prosecutor
Local authority prosecutors operate in a challenging environment where rising financial pressures directly impact regulatory compliance, straining already extensive workloads. With local government budgets under increased scrutiny, the need for cost-effective prosecution strategies has never been more critical.
Former local authority prosecutor Emma Hall, who recently joined Bevan Brittan, leverages her decades of in-house experience to share actionable insights, offering local government legal teams the tools they need to manage costs effectively while maintaining service standards.
Removing barriers to subsidies for arts and culture
Following the UK’s post-Brexit introduction of the Subsidy Control Act 2022, providing public funding for arts and heritage projects has become more complex. Previous EU State aid which provided block exemptions allowed subsidies for a broad range of culture and heritage activities no longer applies, ultimately triggering significant compliance burdens for public bodies.
To address these difficulties, the UK government has proposed a ‘Streamlined Route’ for subsidies for arts & culture by identifying pre-approved criteria for cultural subsidies, making it quicker and easier to provide public sector support for these purposes.
Devolution, Local Government Reorganisation and district energy
Ash Woodcock, Kirtpal Kaur-Aujla, Carrie Davies and Freddie Sedgwick
In the face of the UK government’s planned expansion of English devolution, local authorities are being given a central role in the roll-out of heat networks by appointing them (or envisaged groupings of ‘Strategic Authorities’) as Heat Network Zone Coordinators.
For local authorities facing or already involved in LGR, heat networks find themselves in an area of complex regulatory overlap. However, these are practical steps which councils can take on now to prepare for these risks and to be effectively positioned for the transition.
The double-edged sword of highways data
A recent Court of Appeal case highlights the implications arising from development in digital mapping and the new risks faced by highway authorities as a result.
While the proliferation of information regarding the state of highways certainly provides benefits both for road users and for authorities, there will also be new challenges and increased scrutiny to be faced by highway authorities which should be carefully considered.
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Devolution webinar series round up
May - December 2025
Local authorities undergoing devolution and Local Government Reorganisation face a number of challenges, from navigating complex legal and regulatory frameworks to ensuring a smooth transition for the local community.
In this webinar series we will provide essential guidance across a number of key areas, highlighting the key considerations at every step of the way.
There is still time to sign up to the series and watch the previous sessions on demand. Registration links and more information about each session can be found here.
For the latest updates relating to this sector, follow our dedicated Central & Local Government LinkedIn page today.
