Local government reorganisation: why local infrastructure matters more than ever

Local Government Reorganisation (LGR) brings significant structural change. While much of the focus is often on governance, boundaries and senior leadership, there is growing recognition that how councils work with the voluntary, community, faith and social enterprise (VCFSE) sector during this period is equally critical.

Recent guidance produced by NAVCA and ACRE highlights both the risks LGR poses to local voluntary and community organisations and the vital role that local infrastructure organisations (LIOs), Like Cambridgeshire ACRE, can play in helping councils and communities navigate this transition constructively.

The risk of losing local knowledge and relationships

Many councils already have well‑established relationships with local VCFSE organisations, built over years through partnership working, grant funding and informal local knowledge. During LGR, there is a real risk that these connections are weakened or lost as structures change, roles are reconfigured and priorities shift.

This matters because the VCFSE sector plays a distinctive role. Local organisations often:

  • Reach communities and individuals who are least likely to engage with statutory services
  • Deliver hyper‑local services and activities that cannot easily be scaled or commissioned centrally
  • Operate on small budgets, with limited capacity to navigate structural upheaval

Smaller organisations, in particular, may struggle to understand new council arrangements, identify the right contacts or maintain existing funding streams during periods of change.

Why Local Infrastructure Organisations are critical during LGR

NAVCA’s guidance is clear that LIOs act as an effective bridge between councils and the VCFSE sector, especially during periods of uncertainty and transition.

Local infrastructure organisations support the sector by:

  • Providing trusted routes for communication between councils and local organisations
  • Helping councils understand the diversity, strengths and pressures within the VCFSE sector
  • Supporting organisations to adapt, re‑connect and remain engaged as council footprints and systems change
  • Identifying where informal or fragmented grant funding risks being lost during financial transitions

Critically, LIOs help ensure that hyper‑local activity and knowledge are retained, even as strategic authorities and unitary structures are formed.

The role Cambridgeshire ACRE can play

As the recognised local infrastructure organisation for rural Cambridgeshire and Peterborough, Cambridgeshire ACRE is well placed to support both councils and the VCFSE sector through LGR.

Our role is not to speak on behalf of councils or replace direct relationships. Instead, we can:

  • Act as a connector, helping voluntary and community organisations understand new arrangements and points of contact
  • Support councils to engage meaningfully with local organisations, particularly smaller groups and those operating informally
  • Help identify where grant funding and support mechanisms risk being disrupted or lost during transition
  • Provide insight into local needs, assets and community capacity, shaped by long‑standing relationships across rural areas

By working alongside councils and partners, Cambridgeshire ACRE can help ensure that LGR strengthens, rather than fragments, place‑based working.

An opportunity, not just a risk

While LGR brings uncertainty, it also creates an opportunity to reset relationships, improve engagement and take a more strategic, system‑wide approach to working with voluntary and community organisations.

The NAVCA guidance encourages councils to invest time in:

  • Early and transparent communication with the VCFSE sector
  • Involving LIOs in transition planning
  • Recognising the additional pressure LGR places on voluntary organisations and infrastructure bodies

Handled well, LGR can result in stronger partnerships, clearer roles and more resilient local systems.

Cambridgeshire ACRE remains committed to working constructively with councils, partners and communities to support this transition and ensure that local voices, relationships and services remain central to future arrangements.

Read NAVCA and ACRE’s joint guidance note on ‘Working with the voluntary and community sector via local infrastructure organisations during local government reorganisation’