Top five FM challenges from upcoming council devolution

The UK government is set to reorganise a number of local government structures, replacing two-tier systems with single-tier unitary authorities. The plan aims to streamline operations and reduce duplication, but the merging may come with a new set of challenges, particularly for facilities management professionals, who are responsible for safe and compliant maintenance of estates.

Councils are grappling with ageing infrastructure, limited budgets, rising legislative demands, staffing shortages, and the complexities of devolution. These pressures risk a strain on resources, making it increasingly difficult to maintain safe, compliant, and efficient estates while balancing immediate operational needs with long-term planning.

Davy Clark, Implementation Consultant at SFG20, the industry standard for building maintenance, has outlined the top five facilities management challenges arising from council devolution and the risks involved with non-compliant maintenance of council estates.

1. Varying standards and practices

Merging teams from different councils involves bringing together different working cultures, historic practices, and management styles, risking potential friction and resistance to new ways of working. Councils may adopt different approaches to maintenance priorities, compliance, procurement, and risk tolerance, creating inconsistencies and complicating benchmarking. This may even lead to variable service quality and increased compliance risk, especially in multi-site or regional portfolios.

2. Skills shortages and capacity challenges

As responsibilities expand under devolution, many councils face skills gaps and capacity constraints, inheriting new duties without the relative boost in resources or FM expertise.

Smaller, under-resourced teams are particularly impacted, struggling with strategic decision-making, contractor management, and compliance, often with limited tools and support. A recent study from SFG20 revealed that 80 per cent of FM professionals say their teams are understaffed, with 24 per cent reporting significant understaffing. The difficulty in recruiting and retaining skilled FM professionals at a local level may further complicate the challenge.

3. Managing complex asset portfolios

A significant challenge for devolved councils is managing complex, ageing asset portfolios, including schools, libraries, and social housing. These assets frequently require significant capital investment or remedial work, but budgets are typically constrained. FM teams must balance reactive maintenance, planned preventative regimes, and capital investment planning with limited funding.

4. Procurement and supply chain issues

The increased autonomy that comes with devolution risks complexities in procurement and supply chain management. While councils now have more freedom in procurement, this autonomy often comes without the benefit of centralised frameworks or economies of scale.

As a result, councils are likely to duplicate procurement efforts, risking higher costs, and inconsistencies with suppliers. This fragmentation of procurement practices complicates efforts to ensure service quality, regulatory compliance, and the delivery of social value.

5. Lack of asset-level visibility in data management

Finally, the shift towards centralising property data across increasingly complex estates has raised concerns about the loss of asset-level visibility. As councils aggregate data to manage large portfolios more efficiently, there may be a sacrifice in detail.

Outdated, incomplete, or lost asset data, such as maintenance history or regulatory status, causes operational friction during building handovers, service transitions, or ownership changes. This lack of visibility forces FM teams into reactive decisions, hindering strategic planning and leading to delays, duplication, and increased compliance risks.

Clark said: “The devolution of councils is reshaping the facilities management landscape by presenting significant operational and strategic challenges, including fragmented standards, skills gaps, complex procurement, and the loss of asset-level data. FM teams must adapt and innovate to meet the growing demands of their estates.

“Building management requires strict compliance and safety. Neglecting maintenance can lead to severe consequences, including multimillion-pound fines, reputational damage, and even imprisonment for injury or fatalities. In 2023, Newham Council faced 9,000 overdue fire risk assessments, 5,400 open repairs, and 40 per cent of homes lacking electrical tests for over 11 years. This led to a £25 million task force to address damp and mould, highlighting how neglecting maintenance can far exceed the cost of proactive care.

“Building safety issues often arise from lapses in judgment and poor asset management. To ensure safety, FM teams must ensure that asset registers across all estates are up to date and that all team members have a thorough understanding of the Golden Thread of Information, as well as the risks associated with non-compliance.

“To learn about common building maintenance compliance risks and how to mitigate them, as well as the main FM challenges arising from council devolution, download SFG20’s e-book here.”