Kingsley Clarke, Head of SCF (South West) at Southern Construction Framework, explains why councils must rethink office space. With local government reorganisation, budget pressures, and underused buildings, smarter reconfiguration can cut costs, boost productivity, and create multi-use spaces that better serve communities.
As local government reorganisation continues across the UK, these changes are presenting councils with complex decisions about office space. Mergers, service consolidations, and changing workforce structures are leaving many authorities with duplicated or underused buildings. At the same time, councils face stretched budgets, due to high inflation, rising energy costs, and growing demand for services. The Local Government Association estimates a funding gap of over £2bn this year (2025/2026). This means making efficient use of every asset is more critical than ever.
Meanwhile, councils are finding it can take years to dispose of buildings. Legal processes, market conditions, and long leases that cannot be broken without penalty can all delay action. The result is areas of obsolete public estate, impacting the vitality of towns and cities. According to the British Council for Offices, office occupancy has fallen to around 66%, down from 80% pre-pandemic. By contrast, corporate occupiers have led the return to workplaces, with desk utilisation roughly 13% higher than in the public sector.
This indicates a clear opportunity: councils must look beyond disposal and embrace smarter reconfiguration of their spaces, including opening them up to partner organisations, to make budgets go further and deliver better outcomes for communities.
Reconfiguration for the future
Reconfiguration has emerged as a practical strategy amid local government reorganisation. Rather than relocating or building anew, existing spaces can be refurbished to deliver sustainable, cost-effective workspaces, while promoting wellbeing and inclusivity.
For example, wellness or break out areas can be created to enable focused working. Smart and sustainable systems can also be implemented such as temperature control and improved air quality through HVAC (Heating, Ventilation and Air Conditioning) that can enhance concentration and cognitive performance. This is important as well-designed spaces can reduce stress and improve productivity.
Councils should also prioritise enhancing their spaces to meet carbon reduction targets. Actions can be as simple as installing energy efficient systems such as LED & Smart Lighting or more structural, such as improving insulation.
More energy efficient buildings also enable local authorities to make cost savings, freeing up funds for delivering greater impact in communities. As devolved authorities will have the opportunity to set the direction for projects amid reorganisation, ensuring community impact is maximised will be vital in making regions attractive to developers, investors and businesses focused on sustainability.
Multiplying community impact with multi-use
Opening council offices to partner organisations or community initiatives can further increase utilisation. Multi-use spaces can help break down silos, enabling cross-agency collaboration.
For example, departments like social services, housing and public health can co-locate teams to streamline workflows and processes, leading to reduced duplication and faster decision-making. Citizens then benefit from more integrated services while councils see improved operational efficiency.
This is a strategy that has been implemented by Devon County Council. Leroy Venn, Assistant Director – Transformation & Business Services, said: ‘In recent times we have exited private office leases and co-located with our district council partners. We also lease various offices across the county to our partners, including NHS and blue light services. Co-location of services has allowed us to better join up with partners to provide services into the communities as well as reduce our operational costs.’
Strategic implications
Reconfiguring offices is increasingly a strategic decision, rather than purely a facilities management issue. Forward-thinking councils are increasingly integrating estate planning into broader organisational strategy. For example, councils which are aiming to collaborate closely with community groups should design offices in a way that can be opened up for public use, including additional meeting and training rooms, or event spaces.
Looking ahead
While reorganisation is posing challenges in terms of budget pressures and asset utilisation, it also presents an opportunity. By considering office space as a strategic asset, councils can optimise budgets, better support staff, and deliver improved services to local communities. This is particularly crucial considering recent ONS statistics which have shown the size of the public sector has increased to 6.1m employees since the start of 2019, yet public service productivity has reduced by 9.9% over the same period. Ensuring spaces are utilised in the right way supports effective public sector project delivery.
Smarter reconfiguration is not only vital for reducing costs however, but also for transforming how councils work and interact with the public. During a period of change and uncertainty, making space work smarter is no longer optional, but a public imperative.
