One-Third of UK Councils Risk Revenue Loss Due to Delayed LGR Finance Planning
By Lauren Towner · 15 July 2026
In brief: Access PaySuite research finds 33% of UK councils are delaying LGR finance planning, risking revenue collection as legacy IT dictates transformation strategies ahead of the 2028 unitary authority deadline.
| LGR Deadline | April 2028 |
|---|---|
| Council Tax Arrears | £7.4 billion |
| Legacy IT Impact | 89% of finance leaders |

Quick Summary
New research from Access PaySuite reveals that 33% of UK councils are delaying LGR finance planning, risking critical revenue collection ahead of the 2028 deadline. With legacy IT systems dictating strategy for 89% of leaders, urgent infrastructure modernization is required to manage £7.4 billion in existing arrears.
How Does Access PaySuite Solve LGR Finance Challenges?
Access PaySuite provides a structured pathway for councils to navigate the Local Government Reorganisation (LGR) by unifying fragmented income systems. Currently, 89% of finance leaders admit that outdated technology hampers their transformation, often leading to vendor lock-in and integration failures. By prioritizing payment infrastructure planning early in the transition, councils can avoid the common pitfall of treating revenue systems as an afterthought.
- Unified Income Management: Consolidating disparate systems from merging district and county councils.
- Debt Mitigation: Addressing the £7.4 billion council tax gap through automated collection.
- Strategic Integration: Overcoming the 40% barrier of software provider inflexibility.
What Risks Do Councils Face by Delaying Digital Transformation?
Delaying LGR finance planning until the mid-point of reorganization creates significant operational friction. Research shows that 30% of leaders map payment systems too late, leading to complex, avoidable mistakes during the transition to unitary authority status. With 96% of leaders struggling to balance financial stability with citizen experience, failing to modernize risks exacerbating the £655 million social housing rental arrears crisis.
- Revenue Leakage: Fragmented systems lead to missed collections during the 2028 transition.
- Operational Complexity: Retroactive system mapping increases costs and deployment timelines.
- Citizen Friction: Poorly integrated payment portals damage trust during service consolidation.
FF NEWS TAKE:
This report is a wake-up call for the public sector. The LGR finance planning gap isn't just a technical glitch; it's a multi-billion pound threat to local services. Access PaySuite correctly identifies that payments must be the foundation, not the final step, of digital transformation. For the fintech industry, this highlights a massive opportunity to replace legacy IT systems with agile, embedded finance solutions that move the needle on public sector efficiency.
Frequently asked questions
What is the LGR finance planning deadline for UK councils?
The Local Government Reorganisation (LGR) deadline is set for April 2028. By this date, merging two-tier county and district councils must transition into single unitary authorities. Access PaySuite warns that one-third of councils are currently delaying essential infrastructure planning, which could jeopardize revenue collection and income management during this transition.
How does legacy IT affect council digital transformation?
According to Access PaySuite, 89% of local authority finance leaders admit that legacy IT systems currently dictate their transformation strategy. This 'technology-first' rather than 'strategy-first' approach, combined with vendor lock-in reported by 40% of respondents, creates significant barriers to integrating the disparate systems required for new unitary authorities.
What are the financial risks of delaying LGR infrastructure updates?
Delaying infrastructure updates puts vital revenue at risk. UK councils already face £7.4 billion in council tax arrears and £655 million in social housing rental arrears. Access PaySuite research indicates that fragmented or late-mapped payment systems could further increase these arrears during the restructuring process.
About the companies
Access PaySuite
Part of The Access Group · Website · 7 stories on FF News since 2024
Previously on FF News:
- UK Legal and Financial Sectors Lead 2026 Payment Experience Gains as Customer Expectations Rise 18 August 2026
- Access PaySuite Acquires Ordo Infrastructure to Revolutionize UK Open Banking Payments 17 June 2026
- Access Paysuite Launches AI-powered Income Management Evo to Transform Public Sector Financial Management 15 September 2025
Socitm
1 story on FF News since 2026
Companies in this story: techUK, Access PaySuite, Socitm, The Access Group
People in this story: Andrew Rogers, Georgina Maratheftis, Jamie Symons