Local government’s digital future depends on its people — and councils like Sheffield are proving that investing in data skills is the fastest way to deliver. LocalGov reports.

In an era of rapid technological change, local government organisations are facing a dual challenge: delivering high-quality services in an increasingly digital world while contending with budgetary pressures that stretch resources thin. Across the sector, digital transformation has become synonymous not just with adopting new systems but with fundamentally reshaping how public services are designed, delivered, and experienced. At the heart of this shift lies a crucial insight: technology only works as well as the people who use it.

Digital transformation isn’t simply about new software dashboards or automating process flows. It’s about embedding data-driven decision-making, digital fluency, and analytical confidence into everyday public service delivery. To make this a reality, councils must intentionally invest in the skills of their workforce so that digital tools become enablers, not burdens. This is where upskilling becomes not just a human resources priority, but a strategic necessity.

Skills gaps hold back progress

Recent evidence highlights a stubborn and expensive truth for local government: a significant proportion of public sector employees lack the baseline digital and data skills necessary to work efficiently. According to research from Multiverse’s 2025 Skills Intelligence Report, shortages in data capabilities in local authorities result in substantial productivity losses — with council staff collectively spending far too much time on data tasks that could be streamlined through better skills, tools, and confidence.

This skills gap is more than a nicety; it has real operational impacts. Without the ability to interpret and act on data, councils struggle to optimise services, allocate scarce resources effectively, or make evidence-based decisions that benefit residents. For organisations already under significant budget pressure, inefficiencies driven by skill shortages mean time and money that could be spent on frontline services instead get swallowed up in low-value work.

Upskilling as a catalyst for transformation

For local authorities serious about digital transformation, upskilling the workforce — not just at the leadership level but across every function — is essential. Digital transformation depends on a workforce that can understand data insights, evaluate digital options, and confidently apply new tools in service of residents. This extends beyond basic IT literacy to encompass analytics, data interpretation, and the ability to iterate on services using evidence and insight.

Upskilling also plays a vital role in fostering a culture of continuous improvement. When council employees feel equipped to experiment with new approaches — backed by training and supported by leadership — organisations become more adaptive and resilient. Upskilling isn’t a one-off investment; it’s a strategic posture that ensures councils remain capable of navigating emerging technologies such as AI, automation, and predictive analytics.

Sheffield City Council: A case in point

One of the most compelling examples of this approach is the initiative launched by Sheffield City Council in partnership with Multiverse. In early 2025, the council announced it would upskill 150 staff through a new Data Academy as part of its broader Future Sheffield transformation programme. It has since expanded to include many more participants.

Funded through the apprenticeship levy, this Data Academy has equipped participants with tailored training in digital competencies such as data analysis, insights for business decision-making, and more advanced data capabilities. Upon completion, staff will be able to design and execute data-led projects and champion data-driven decision-making across the organisation.

Cllr Fran Belbin, deputy leader of Sheffield City Council, emphasised that the programme reflects a long-term commitment to both workforce development and community outcomes. Rather than treating digital skills as an afterthought, the council is embedding them into its core organisational strategy with the explicit aim of improving operational performance and enhancing the quality of services delivered to residents.

Delivering better outcomes

What makes Sheffield’s model so relevant for other local authorities is its alignment of workforce development with service impact. By investing in data skills across departments, Sheffield City Council is not only enabling internal efficiency gains but also positioning itself to deliver better outcomes for the public — including faster service delivery, more targeted use of resources, and improved resident experience.

In a landscape where councils must do more with less, upskilling staff becomes a force multiplier: a way to unlock productivity, foster innovation, and build organisational agility.

The bottom line

Digital transformation in local government succeeds not when new technology is installed, but when workforce capabilities rise to meet technological demands. Councils that prioritise systematic upskilling — equipping their people with the confidence and competence to leverage digital tools — are the ones most likely to deliver sustainable impact for their communities. The Sheffield City Council Data Academy offers a compelling template: invest in people, embed skills throughout the organisation, and place data at the heart of decision-making. By doing so, local authorities not only transform services but also future-proof their organisations against the accelerating pace of change.

Sponsored by Multiverse and written with the help of AI.

If you would like to learn more about Sheffield City Council’s Data Academy, then join our forthcoming free webinar: Future Sheffield: How one city council is upskilling its workforce.