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The Association of Directors of Adult Social Services (ADASS) has warned there is “no clear plan” or funding to ensure new councils are financially sustainable, creating a “real risk” that some authorities will not be able to meet their legal duties as soon as they are created under local government reorganisation.

The Secretary of State for Housing, Communities and Local Government, Steve Reed, yesterday issued his final decisions on local government reorganisation in four fast-track areas.

Responding to the announcement, ADASS President Jess McGregor warned that local government reform must not come at the expense of people who rely on care and support - noting that reform on this scale brings “real risks for adult social care that cannot be ignored”.

She said: “Hundreds of thousands of older and disabled people depend on councils every day. Any changes must protect the continuity, quality and safety of that care from day one.”

She called on government to act now in the following three critical areas:

“First, there is no clear plan or funding to ensure new councils are financially sustainable. Without this, there is a real risk that some authorities will not be able to meet their legal duties as soon as they are created.

“Second, the leadership pipeline in adult social care is already under significant strain, with persistent challenges in recruiting and retaining experienced Directors of Adult Social Services. Local government reorganisation risks exacerbating this — increasing turnover, disrupting leadership continuity, and creating additional demand for roles that are already hard to fill.

“Strong, accountable leadership will be critical to a safe transition, yet the system is not currently equipped to meet that challenge. Urgent action is needed to strengthen and expand the pool of senior leaders capable of delivering statutory duties.

“Third, we need a plan to address how ‘ordinary residence’ rules will operate under reorganisation. New council boundaries are likely to concentrate responsibility for care homes in areas with lower land values — places that also tend to have the smallest council tax bases. This creates a structural risk that some councils will inherit significantly higher levels of need without the funding to match.”

See also: Local Government Reorganisation 2026: Read Local Government Lawyer’s exclusive guide providing insight into the challenges that senior legal professionals are facing, alongside analysis of the work needed to ensure a smooth transition.

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