One-Third of UK Councils Risk Revenue Loss Due to Delayed LGR Finance Planning

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 Currently, 89% of finance leaders admit that outdated technology hampers their transformation, often leading to vendor lock-in and integration failures.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.