---
title: Leisure Target Operating Model under LGR
description: Local government in the UK is undergoing a substantial transformation, with many councils merging into larger unitary authorities. This shift aims to deliver streamlined governance, financial efficiencies, and better-integrated services.
image: https://v4services.com/hubfs/V4%20Services/Imagery/Services/Leisure%20and%20Tourism/Leisure%2c%20Culture%20%26%20Tourism%20-%20Section%201%20-%201920x960%20-%20A%20ruined%20castle%20on%20a%20hillside.jpg
---

Local government in the UK is undergoing a substantial transformation, with many councils merging into larger unitary authorities. This shift aims to deliver streamlined governance, financial efficiencies, and better-integrated services. However, for leisure services- often deeply rooted in local identity and community wellbeing- the implications are complex. This paper provides a framework for rethinking leisure operating models in this evolving landscape.

 

# **Current State of Leisure Operating Models**

Local authorities currently deploy a variety of leisure delivery models:

- **In-House Delivery:** Direct council management of facilities.
- **Local Authority Trading Companies (LATCs):** Council-owned arms-length bodies.
- **Charitable Trusts:** Independent, not-for-profit organisations.
- **Private Sector Contracts:** Outsourcing to commercial leisure operators.
- **Hybrid Models:** A blend of the above, tailored to local needs.

*Each of the models has its own strengths and vulnerabilities when subjected to structural changes such as a move to unitary governance.*

 

# **Impact of Reorganisation on Leisure Services**

- **Asset Consolidation:** Duplication of facilities may prompt rationalisation.
- **Governance Complexity:** Varying operating models inherited from predecessor councils.
- **Cultural Integration:** Differing service expectations and community identities.
- **Financial Pressures:** Legacy contracts and funding models may no longer be viable.
- **Legal and TUPE Implications:** Staff and service transfers must be managed carefully.

# **Key Considerations for Developing New TOMs**

**1. Strategic Alignment**  
Align leisure strategy with wider health, wellbeing, and placemaking priorities.  
Support integrated service delivery across social care, education, and public health.

**2. Community Engagement**  
Undertake co-design processes with local communities.  
Ensure equitable access and representation across all legacy geographies.

**3. Financial Sustainability**  
Develop a consolidated financial model incorporating lifecycle costs and capital investment plans.  
Explore income diversification opportunities, including commercial partnerships.

**4. Governance and Accountability**  
Establish clear lines of responsibility and accountability across merged entities.  
Create performance management frameworks aligned with new authority goals.

**5. Digital and Data Capabilities**  
Leverage shared data platforms to improve customer insight and operational efficiency.  
Invest in digital access, automation, and online booking/payment systems.

**6. Workforce Integration**  
Conduct a comprehensive review of staffing, terms, and capabilities.  
Invest in training and change management to support cultural cohesion.

 

# **Operating Model Options for Consideration**

**Option 1: Pan-Authority Trust Model**

- A single charitable trust operating across the new unitary authority.
- Benefits: Economies of scale, simplified governance, potential for innovation.

**Option 2: Regional LATC Model**

- Multiple trading companies serving distinct geographies or service types.
- Benefits: Local responsiveness with strategic alignment.

**Option 3: Strategic Commissioning Model**

- Council acts as commissioner with delivery through a mix of partners.
- Benefits: Flexibility and focus on outcomes.

**Option 4: Enhanced In-House Delivery**

- Expanded in-house services with restructured internal governance.
- Benefits: High control and policy alignment.

 

# **Transition Planning and Implementation**

- Develop a detailed transition roadmap including stakeholder mapping, risk analysis, and legal due diligence.
- Establish shadow governance structures to test and refine new models.
- Communicate clearly with staff, users, and partners.

 

# **Conclusion**

The reorganisation of local government into unitary authorities represents a **once-in-a-generation opportunity to reimagine public leisure provision**. By proactively engaging in the development of flexible, community-focused, and financially sustainable Target Operating Models, local authorities can deliver improved outcomes and secure long-term value for their residents.

 

# **Recommendations**

- Initiate early TOM scoping exercises with cross-functional teams.
- Commission independent options appraisals where needed.
- Prioritise inclusive community engagement.
- Build in resilience and adaptability to future policy or economic changes.

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