
Local government is entering yet another difficult financial year, and technology is being asked to carry a growing share of the load. According to research from the BBC Shared Data Unit, almost every UK local authority plans to reduce services this financial year. The 218 upper-tier councils have set out £3.2bn of cuts, covering everything from less frequent bin collections to closed heritage attractions and withdrawn bus routes. Even if those savings are made in full, councils expect to make further cuts of £3.8 billion by the end of 2027/28 to balance their books.
Against that backdrop, budget-saving AI projects are being pushed forward. Medway Council is already using AI to support the production of Education, Health and Care Plans and to process invoices. West Northamptonshire and North Northamptonshire have both looked to AI-assisted analysis as part of closing a combined funding gap, with reported savings opportunities running to almost £50 million. Solihull Council has appointed a partner to run the first phase of an AI transformation discovery programme.
Central government is now beginning to fund a number of such ventures. On 15 September, 14 English councils currently receiving Exceptional Financial Support were allocated a share of £91m, split as £41m in 2026/27 and £50m in 2027/28, to redesign high-cost services and adopt AI. The named areas are the ones that dominate council budgets: adult social care, children’s services, temporary accommodation and special education and needs (SEND) provision. Redbridge is deploying AI-enabled home technology that detects risks such as falls so that residents can live independently for longer, while Trafford is investing in a single integrated platform to improve team collaboration.
The sense of urgency makes caution more important, not less. AI is not an instant solution for a system under severe strain, and there are legitimate ethical questions about using automated tools to help assess the level of care that vulnerable people need. The Local Government Association has estimated that councils would need around 25% more funding within three years simply to maintain current services, which puts the scale of any technology-driven saving into perspective.
What this means for our partners
The opportunity is real, but the bar is higher than it was two years ago. Councils under exceptional financial support are not buying experiments. They are buying measurable reductions in the cost of delivering a specific service, usually within a single budget cycle, and they need to be able to show their auditors and their residents how the saving was made.
For suppliers with genuine local government experience, this is a moment to sell outcomes rather than product. The councils receiving this funding have been asked to establish approaches that can be replicated across the wider sector, which means well-documented, transferable work has a value well beyond the original contract.
At Bramble Hub, we work with suppliers delivering exactly this kind of service redesign, and our role as prime supplier is to make the commercial route straightforward so our partners can concentrate on delivery.


