Governing in the Age of AI: A Call to Reimagine Local Government
In their May 2025 report, Governing in the Age of AI: Reimagining Local Government, authors Oliver Large, Laura Britton, and Alexander Iosad from the Tony Blair Institute for Global Change argue that local governments in the UK are at a breaking point, operating under outdated, labor-intensive models that are buckling under the strain of rising demand and chronic underfunding. With projections indicating that councils will need an additional £16 billion by 2029 just to maintain services, and amid a public increasingly dissatisfied with long wait times and unmet needs, the authors present AI as the most viable and transformative solution for systemic change.
The report illustrates the scale of the opportunity through a detailed case study in which one local council partnered with TBI to analyze 19,000 unique tasks. The findings showed that AI could automate or enhance 26% of tasks, saving the council one million labor hours annually—equivalent to £30 million in productivity. When scaled nationally across England and Wales, this translates into potential savings of £8 billion a year, or £325 per household. These gains could be used to reduce backlogs, improve service quality, relieve workforce pressures, or shift toward preventive service models.
However, the authors emphasize that this transformation will not occur organically. Local councils are constrained by fragmented infrastructure, weak digital capabilities, vendor lock-in, and lack of centralized support for innovation. To address these systemic barriers, the report proposes the creation of a Devolved AI Service (DAIS)—a cooperative platform to incubate and scale AI-enabled public service tools. Funded initially by the central government and sustained over time through subscriptions and international commercialization, DAIS would build reusable AI tools, set data and procurement standards, and support councils in responsible deployment through frameworks like PEARS (Predictable, Explainable, Accountable, Reversible, and Sensitive).
Three flagship use cases are proposed to demonstrate AI’s potential. First is the integration of AI “co-workers” in high-volume, high-cost services like adult social care, where AI could dramatically reduce administrative burdens, shorten waiting lists, and allow social workers to focus on direct care. Second, a Local Navigation Assistant (LNA) would streamline citizen interactions with government, reduce unclaimed benefits, and lower call center burdens. Third, an AI-supported planning platform would modernize local plan creation and application review, reducing approval times and improving housing development outcomes.
The authors argue that councils must not only adopt AI but also reimagine governance structures, workforce capabilities, and procurement systems to succeed in the AI era. DAIS, in their view, would serve as the crucial vehicle for achieving national-scale change while preserving local ownership and responsiveness. By embracing AI not just as a tool but as a strategy for structural reform, the report envisions a renewed era of local government as the cornerstone of economic resilience and social welfare.
This blog post is a summary of the report “Governing in the Age of AI: Reimagining Local Government” authored by Oliver Large, Laura Britton, and Alexander Iosad, published by the Tony Blair Institute for Global Change. This summary is provided for informational purposes only and is not guaranteed to be accurate or complete. It does not constitute legal advice.
