
Ensure a Safe and Legal Transition Through Local Government Reorganisation with Expert Tax Advice
Significant changes are coming to local government in England. As part of the Government’s Devolution and Local Government Reorganisation (LGR) programme, councils are merging, strategic authorities are forming, and taxation complexities are increasing.
PSTAX is the UK’s leading taxation advisor for public bodies, with over 300 local authority clients. Having successfully supported every recent LGR transition, we bring unique and valuable experience to help councils manage tax implications, ensuring compliance and minimising risk.
Why Councils Trust PSTAX for Local Government Reorganisation
A Proven Track Record
We have advised all councils in the last four rounds of LGR, helping them successfully transition into new unitary authorities. Our expertise spans Somerset, North Yorkshire, Cumbria, Dorset, Buckinghamshire, and Northamptonshire, ensuring tax compliance and financial efficiency throughout the process.
Specialist Tax Support for LGR
PSTAX provides councils with tailored tax advisory services covering:
✔️ VAT registration & compliance
✔️ Employment taxes & payroll issues
✔️ Construction Industry Scheme (CIS) implications
✔️ Stamp Duty Land Tax (SDLT) challenges
✔️ Corporation tax for council subsidiaries
✔️ HMRC liaison & compliance assurance
Transparency in Pricing – No Hidden Costs
At PSTAX, we pride ourselves on transparent pricing. Unlike others who reduce initial costs only to later provide unexpectedly large consultancy bills, we ensure clear, upfront pricing so councils can plan their budgets effectively.
Exclusive Support for Devolution
With authorities devolving and new powers being granted for transport, economic development, adult skills and public safety, councils must prepare for significant financial restructuring. PSTAX is launching an LGR Taxation Partnership Programme, a service designed to meet the specific requirements of councils going through these radical changes.
Our Approach to Local Government Reorganisation Tax Support
LGR Partnership Programme
Phase 1: LGR Pathfinder – Getting Ready
Laying the groundwork is crucial. This phase includes:
- VAT and Indirect Taxes Readiness
- Employment Taxes Readiness
- SDLT Considerations
- PFI Expiry Preparation
Phase 2: LGR Create – Preparing to Go Live
Working with the councils and HMRC to ensure a smooth transition by addressing key financial and tax obligations before the new structure takes effect.
Phase 3: LGR Construct – Post Go-Live Compliance
Supporting councils with implementation challenges, including managing new tax registrations and ensuring continued compliance.
Phase 4: LGR Optimise – Futureproofing Your Council
Helping the newly formed councils refine processes, enhance efficiencies, and sustain financial health beyond the transition period.
Recent Success Stories: Councils We’ve Supported through Local Government Reorganisation Taxation
North Yorkshire – Transitioned eight councils into the largest unitary authority in England.
Cumbria – Managed the complex merger of six districts into two new unitary councils.
Somerset – Supported four councils in successfully forming a single unitary authority.

Somerset

North Yorkshire

Cumbria

Dorset

Buckinghamshire

Northamptonshire
We approached PSTAX because we were a member of the of PSTAX Club. I have to say that was the best decision we ever made because what it did was showed our more senior leaders that we were showing due care because we were actually going out and getting expertise in. It also meant that we had a direct link with HMRC because PSTAX were effectively the conduit between us and HMRC and I could bore you to death with some of the challenges that we had with HMRC.
Paul Griffin, Chief Accountant, Somerset Council


30th April 2026
Public sector reform and tax


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