Summary of the Independent Revenues & Benefits Discussion Group – 14 July 2025

At the most recent Independent Revenues & Benefits (R&B) Discussion Group, chaired by Malcolm Gardner, local government professionals gave a sobering assessment of the sector’s current state. With escalating financial deficits, an ageing and shrinking workforce, and new pressures from political reforms, the group concluded that the real crisis might be the failure to deliver meaningful outcomes for residents.

Financial Stress: A Crisis Deepening by the Year

Malcolm Gardner opened by highlighting the Public Accounts Committee’s stark warning: half of English councils could face insolvency within five years, driven by unsustainable demand in social care, SEND, and housing.

Robert Fox agreed, citing worsening pressures across the authorities he’s worked with, particularly around SEND costs. Michael Fisher emphasised that financial resilience varied sharply; councils with commercial property holdings were surviving while others were in a downward spiral, permanently firefighting budget gaps.

Gareth Morgan observed that Welsh councils appeared more stable, likely due to different funding structures, but faced similar underlying pressures. Naomi Armstrong added that while Cambridge City’s property portfolio insulated them slightly, growing demands in housing and temporary accommodation remained unmanageable. Paul Howarth warned that in two-tier areas, counties were at breaking point from social care costs, while districts faced impossible housing pressures.

Output vs Outcome: Are We Measuring the Wrong Things?

A dominant theme was the confusion between outputs and outcomes in local authority performance.

Malcolm Gardner pointed to damning indicators: growing SEND backlogs, rising homelessness, and audits routinely late or incomplete — all signs that headline service delivery statistics were masking worsening social outcomes.

Paul Howarth was blunt: the funding system focused on activity, not impact. Councils were judged by how much they delivered — how many housing units approved, EHCPs processed, or grants distributed — rather than the actual improvements for communities.

Gareth Morgan called out the latest Council monitoring framework, noting that despite new buzzwords around “strategic outcomes,” most measures remained superficial outputs. Naomi Armstrong warned of this at a local level, explaining how Cambridge could show “positive” delivery numbers while homelessness and housing need visibly worsened.

A key conclusion: without outcome-driven accountability, councils risked pursuing “cost per transaction” savings that looked good on paper but devastated communities in practice.

Workforce Time Bomb: Who Will Deliver the Services?

The group described a rapidly approaching workforce crisis, particularly in revenues and benefits teams.

Bob Wagstaff and Robert Fox outlined the age profile issues: large proportions of their teams were over 55, with few replacements being recruited or trained. Michael Fisher warned of “stampedes to the exit” in the event of reorganisations, with some councils already seeing 70% of Revs & Bens managers in the retirement window.

Kirsty Brooksmith gave a London borough perspective, reporting job losses in Hammersmith & Fulham, unsustainable workloads, and no appetite among remaining staff to take on training responsibilities. The group feared this combination of redundancy, retirement, and recruitment freezes would accelerate service collapse.

AI: A False Hope for Service Sustainability?

On whether AI could plug staffing gaps or improve service outcomes, the group was highly sceptical.

Malcolm Gardner pressed the question to Gareth Morgan, who warned that while AI could accelerate basic administrative outputs, it was unreliable for complex decisions and prone to fabricating information. Robert Fox warned of councils being seduced by “AI dashboards” while losing the human discretion necessary for fairness and effective service.

The consensus was clear: AI could optimise minor efficiencies but was no substitute for human expertise in discretionary, outcome-focused services.

Political Reform and Reorganisation: False Promises?

The session also discussed the political shake-up in councils like Kent, now controlled by Reform UK. Kim Larkin, reporting second-hand via internal contacts, said early Reform policies — such as ending hybrid work, abolishing “equality” posts, and enforcing office returns — were unravelling, with little evidence of real savings.

Michael Fisher noted councils had sold off office estates, making large-scale returns impossible. Kirsty Brooksmith warned such moves could worsen recruitment crises in urban councils already struggling to retain staff. Malcolm Gardner and Paul Howarth questioned whether these cost-cutting headlines were just targeting visible outputs without addressing the deeper financial or social pressures.

Conclusion: The Wrong Targets, The Wrong Solutions

By the end of the session, a clear diagnosis emerged:

• Local government is being pushed to measure and cut outputs (staff numbers, transactions, office days), while failing to improve outcomes (reduced homelessness, better SEND provision, community well-being).
• Financial reform remains partial and poorly targeted.
• Workforce planning is dangerously neglected, with major expertise losses imminent.
• AI is being mis-sold as a solution to structural problems it cannot solve.
• Political interventions risk worsening outcomes while achieving negligible real savings.

The group agreed the sector urgently needs to redefine success: not by volume of services delivered, but by their impact on residents’ lives.

The Independent Revenues & Benefits Discussion Group continues to provide a vital forum for expert analysis, shared learning, and open debate at a time of significant policy flux.

For more information or to join future sessions, contact Malcolm Gardner at Visionary Network. info@visionarynetwork.co.uk

The recording can be found at Recording Link

Files and reports to be downloaded:

Please note that the handout contains additional slides covering other items of interest in the news and job adverts, which are provided in partnership with Business Smart Solutions (https://www.businesssmartsolutions.co.uk/).