Although most New Year’s Resolutions are unlikely to make it past February, the new financial year brings about the opportunity for local authorities to commit to changes focused on the longer term and put improvements in place to help create financial sustainability as they continue to face critical financial pressures.

Rising demands for services and increasing costs, coupled with reduced government funding, have left councils struggling to maintain a balanced budget while delivering essential services, with more councils now considering exceptional financial support.

In this challenging landscape, and at a time when local authority budgets for future years are being set, we believe that adopting a commercially-minded approach can bring significant benefits as part of your medium-term financial strategy.

Here are our top 5 commercially-minded resolutions that Local Authorities can implement to help achieve financial stability:

01: Diversify Revenue Streams through Public-Private Partnerships and Impact Investing

• Action: Identify and develop new, sustainable income sources to reduce dependency on traditional funding. Explore opportunities such as investing in renewable energy projects, leveraging public-private partnerships (PPPs), optimising local authority assets for community benefit, and establishing commercial ventures aligned with the local authority’s mission. Utilise partnerships to attract private capital, match public investment, and deliver financial returns alongside positive environmental and social impacts.
• Impact: A diversified income base enhances financial stability, reduces risk, and creates additional resources to reinvest in public services, infrastructure, and community initiatives. Strategic investment and partnership models can drive long-term economic resilience while ensuring sustainable social and environmental benefits.

02: Optimise your assets

• Action: Conduct a comprehensive review of assets, including land and buildings. Consider repurposing, leasing, or selling underutilised assets, while investing in infrastructure that delivers long-term value. Web-based tools such as Vestega, built in partnership with 31ten, offer a rapid site appraisal tool to provide local authorities with the data to support and optimise land and property decision-making as part of a capital asset review.
• Impact: Smart asset management and regular asset review can maximise the value of local authority holdings, generate revenue, and minimise maintenance expenses. Repurposing underutilised assets to meet temporary accommodation needs is an example that can generate income and mitigate against excessive private sector rents, while contributing to better outcomes for people in housing need. The sketchnote below captures the conversation from a recent roundtable discussion hosted by 31ten to explore these opportunities…

03: Embrace technology and digital transformation

• Action: Invest in digital solutions and emerging technologies that streamline operations, enhance service delivery and reduce costs. This includes optimising digital infrastructure, adopting cloud-based platforms, automating routine administrative tasks and using data analytics to draw out insight which informs decision-making. Focus on creating efficient, user-friendly online platforms for community engagement and service access, freeing up staff to dedicate their specialist skills to providing relational support to those who need it most.
• Impact: Digital transformation can improve productivity and efficiency, liberate staff to focus on more complex work, reduce operational expenses, and make services more accessible and efficient for residents.

04: Strengthen financial planning for climate change and Net Zero

• Action: Embed climate resilience and sustainability into financial decision-making by aligning budgets with net zero goals. Develop a pipeline of investment-ready green projects that align with your Council’s net-zero and climate resilience goals. Embed sustainability into financial decision-making by investing in green infrastructure, energy-efficient public buildings, and low-carbon transport solutions. Broker conversations with private sector investors, third-party funders, and institutional finance partners, unlocking opportunities such as green bonds, sustainability-linked loans, and government funding streams to drive carbon reduction projects at scale.
• Impact: A structured green investment pipeline strengthens financial resilience, attracts external funding, and accelerates climate action by connecting investable projects with the capital needed to deliver them. By aligning public and private investment councils can future-proof public services against climate risks, reduce long-term operational costs to position them as leaders in the UK’s green economy—creating jobs, driving innovation, and enhancing environmental sustainability.

05: Shape your market, foster community, build business engagement

• Action: Engage with market providers to transform the way services are procured, to deliver financially sustainable services and person-centred outcomes into the future. Collaborate with local businesses, community groups and residents to co-develop solutions that boost economic growth and social welfare. Encourage initiatives that support local entrepreneurs, attract investment and promote tourism. Engage communities in budget decisions to ensure spending aligns with residents’ needs and priorities.
• Impact: An engaged community and thriving local economy can increase the tax base, create job opportunities and enhance the financial well-being of an area.

31ten has significant experience working with the public sector to shift mindsets and strategies towards a commercial approach. Take a look at our case studies in Camden, Bristol and Surrey or get in touch with Laura Bridges to find out more.