Leadership Hiring in Local Government: Responding to Reform, Cost Pressures and Capability Gaps
By Uncategorized

Following the UK’s recent local elections, local authorities are experiencing major structural and strategic changes. With cost-saving imperatives, devolution and local government reorganisation (LGR), and pressing skills shortages across key functions, leadership hiring in local government is undergoing significant transformation. From housing executive recruitment to transformation programme delivery, the public sector is competing for leaders who can drive change and sustain services under increasing pressure. 

The Chartered Management Institute’s report into leadership in local government revealed that just 67% of managers and leaders in local government believe their senior leadership is effective in helping their organisation succeed. This underscores the urgent need for a renewed focus on capability, strategic thinking, and fresh leadership models, particularly in finance, procurement, housing, and transformation. 

The Changing Context for Local Government Leadership 

Across England, local government reorganisation (LGR) and devolution are reshaping councils and local authorities. With combined authorities and unitary structures on the rise, councils are consolidating resources, rethinking service delivery models, and embracing larger geographies. These changes aim to deliver council cost savings and improved efficiencies, but they also create complex integration and capability challenges. 

As roles are redefined and responsibilities change leadership is required to guide this transformation that is more strategic, politically astute, and operationally capable. Senior leaders must operate effectively across newly merged authorities making cultural integration and stakeholder management skills critical. They must also lead transformation while maintaining essential services. 

Delivering council cost savings too requires leaders who can balance financial discipline with long-term capability building. Whether through shared services, technology investment, or process redesign, today’s finance leaders must be equipped to lead cross-functional cost optimisation without compromising service outcomes. 

Effective cost leadership involves the ability to use data to identify value and to prioritise spend in alignment with its social and economic impact. Again, communication and collaboration skills will be key to building cross-departmental financial strategy and managing supplier relationships for long-term efficiency. 

Leadership hiring decisions in local government must reflect this shift in necessary skillsets. Councils need leaders who can think strategically while empowering teams to deliver smarter, sustainable outcomes.  

Skills Gaps Threatening Public Sector Transformation 

From finance and procurement to digital and data, local authorities are battling widening public sector skills gaps. Finance leaders are expected to deliver value for money under unprecedented fiscal pressure. Procurement leaders must drive innovation while navigating social value mandates and compliance. Transformation leaders must manage multi-year programmes amid tight political scrutiny.  

The demand for leaders who can effectively manage change and transformation is high, but the talent supply is constrained: 

  • Many council employees do not plan to stay in the sector long-term  
  • In finance and procurement, specialist leadership experience is increasingly rare 
  • Many councils are over-reliant on over-stretched internal teams without succession plans in place 

This is prompting a shift towards both interim leadership solutions and creative workforce models to close capability gaps fast.

Interim Leaders as Strategic Partners, Not Stopgaps 

Traditionally seen as a reactive measure, interim leadership is now being embraced proactively across the public sector. Councils and housing providers are turning to interim leaders not only to plug gaps but to drive critical change programmes, oversee governance reform, and stabilise leadership teams during periods of uncertainty. 

At Cedar, we’ve supported local authorities and housing organisations in securing interim finance directors, transformation leads, and housing executives, often with short lead times. The benefits of interim leadership in the public sector include: 

  • Speed to impact: Immediate availability means rapid delivery. 
  • Objectivity: Fresh perspectives help challenge legacy issues. 
  • Expertise: Interim professionals bring deep, relevant sector experience. 
  • Flexibility: Contracts are tailored to project or reform timelines. 

For example, housing executive recruitment on an interim basis allows authorities to advance homelessness prevention or estate regeneration plans without waiting months for permanent hires.

Housing and Place Leadership in the Spotlight 

Local government leadership hiring in the housing sector is facing unique challenges. Social housing reform, decarbonisation targets, tenant engagement mandates, and rising homelessness are all increasing the burden on housing teams. 

Whether recruiting for a permanent housing director or sourcing interim regeneration leadership, councils and ALMOs must ensure their leaders: 

  • Understand regulatory reform and tenant safety requirements. 
  • Can work across housing, planning, and care to address complex resident needs. 
  • Bring lived experience or deep public sector knowledge to drive inclusive place-making. 

Housing executive recruitment must go beyond CVs—it requires a values-driven, community-first approach, something Cedar’s public sector practice is built to deliver. 

Reimagining Public Sector Leadership  

As local authority transformation projects accelerate, hiring must keep pace. Whether implementing new ERP platforms, rolling out integrated care systems, or digitising citizen services, local government needs transformation leaders who can deliver complex change. 

This includes: 

  • Programme and project leaders who can manage political and community expectations. 
  • CIOs and CTOs who understand legacy systems and modern cloud solutions. 
  • Change managers who bring staff and stakeholders on the journey. 

Transformation doesn’t succeed because of technology alone—it succeeds because the right people are in place to manage risk, timelines, and cultural shift. 

Cedar’s Change & Transformation team understands this, having placed transformation leaders into high-stakes roles across councils, NHS Trusts, and public bodies. Our approach combines insight into public sector constraints with access to cross-sector talent. 

Creating a Future-Ready Leadership Pipeline 

Leadership hiring in local government must also reflect the communities it serves. That means prioritising diversity, equity, and inclusion throughout senior roles. Future-ready local government leaders can reflect the diversity of their populations and understand the social determinants affecting service access and outcomes, whilst being fluent in digital, data, and ESG-led governance. 

Cedar supports clients to embed inclusive hiring practices, from role design to interview format, and works to ensure leadership appointments drive long-term succession planning. Councils that invest in attracting and enabling the right leaders now will be best placed to deliver essential services, navigate reorganisation, and build trust with citizens. 

Whether you need a finance director to deliver cost transformation, a housing leader to spearhead regeneration, or a Programme Lead to drive digital change, Cedar is here to help. We combine sector knowledge, national reach, and access to high-impact interim and permanent professionals. Our public sector and not-for-profit team work closely with you to ensure every hire is tailored, timely, and aligned to your outcomes. 

Contact Cedar today to discuss your leadership hiring strategy and secure the talent your organisation needs to thrive.