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.