Finance leadership in local government: challenges shaping 2025

Public sector recruitment is becoming increasingly complex, particularly in the area of finance. Councils are under pressure to deliver services with fewer resources, adopt new digital systems, and meet growing demands around accountability and transparency. That means the expectations placed on senior finance professionals are changing quickly.

Hiring for roles now involves more than technical expertise, leaders are expected to guide transformation, support service delivery, and manage long-term financial planning in a shifting policy environment. It’s a challenge for local government recruitment teams and one that requires a clear understanding of the sector’s priorities.

In this blog, we examine the pressures facing senior finance leaders, the trends shaping local government jobs, and strategies for attracting and retaining top finance talent.

What’s putting pressure on finance leaders in 2025?

Finance leadership has undergone significant changes across local government. As funding pressures intensify and digital expectations expand, senior leadership roles now involve a broader range of responsibilities. These include long-term planning, client-facing stakeholder engagement, transformation and assisting other teams in delivering services with fewer resources.

In the past year, financial risk has become harder to manage. The Local Government Association expects a £2.3 billion shortfall in 2025–26, and one in four councils say they are likely to need emergency support to stay financially stable. This is reshaping how senior finance professionals are expected to work, and creating new challenges for public sector recruitment.

Key issues affecting recruitment:

• Hiring processes for senior finance roles are taking longer.
• Interim leadership is increasingly used to manage transition periods.
• Skills in digital systems and transformation are now essential.
• Visibility is growing, especially for finance leads in public sector jobs.
• More emphasis is being placed on leadership, not just financial control.

Workload is rising, but budgets are not always

Most councils are managing rising demand in areas like housing and adult social care, with no equivalent increase in core funding. Finance professionals are having to support savings plans, advise service leads, and maintain delivery with limited flexibility. 

For local government recruitment teams, this means sourcing leaders who can work under pressure while helping others do the same.

Digital systems are improving, but progress is uneven

While some councils are adopting cloud-based tools and real-time reporting, many are still working with legacy systems. That limits how quickly leaders can produce accurate reports, plan across departments, or support digital transformation. 

Candidates with experience in finance system upgrades, reporting improvement, or automation can bring real value.

Scrutiny is growing, especially in high-risk areas

The number of councils issuing Section 114 notices (formal declarations of financial distress) has increased sharply since 2018, with financial governance now a core focus for both auditors and the public. 

Senior finance professionals are expected to lead on assurance, communicate risk clearly, and support elected members during decision-making. This is influencing how local authorities approach Head of Finance jobs (also known as a Section 151 or Deputy Section 151) and other senior roles.

Cross-departmental working is part of the remit

Finance leadership is more connected to service delivery than it used to be. Whether working with housing, social care, or transformation teams, leaders need to support planning beyond their own department. Communication and collaboration skills are becoming increasingly important in senior public sector jobs, particularly in roles where priorities are shifting quickly.

Devolution 

As new devolved powers are rolled out across regions, many councils will face major changes to leadership structures, decision-making processes, and service delivery models. While these developments bring opportunities for innovation and local autonomy, they are also likely to create potential instability. 

With more strategic roles being created, merged, or dissolved, there is a real risk of an overflow of senior leaders, leading to an imbalance between available talent and the number of top-level positions. Councils will need to carefully manage leadership transitions to retain critical expertise while adapting to the demands of a new political and operational landscape.

Where is local government finance heading next?

Finance roles in local government are changing in practice, not just in title. Senior finance professionals are working with new systems, new reporting requirements, and closer collaboration across departments. These shifts are already shaping what hiring managers are looking for.

For anyone involved in public sector recruitment, these changes matter. Whether you’re hiring into a Head of Finance role or looking at team structures, understanding where finance is heading makes it easier to identify the right skills and plan for the future.

Here are four key shifts that are influencing local government recruitment in 2025:

1. Digital finance systems are becoming standard

   Digital transformation is a growing focus for many councils, but progress remains uneven. While central government has made significant moves to shift services to the cloud, a large number of local authorities are still working with legacy systems.

   A recent survey by the Local Government Association found that over half of councils do not yet have a formal data strategy in place, and only 39% report having a dedicated budget for digital transformation.

   What this means for recruitment:

   • Finance leaders are being asked to modernise systems while maintaining delivery.
   • Experience working around limitations, rather than waiting for ideal infrastructure, is highly valued.
   • Candidates who have led or supported transformation projects are in demand, particularly for Head of Finance jobs.
   • Public sector recruitment teams are prioritising digital confidence alongside core technical skills.
     
     
2. Planning is becoming more data-led

   Councils are increasingly using scenario modelling and forecasting to support long-term planning. This gives finance teams more insight, but also raises the expectations around what leaders should be able to deliver.

   What this means for recruitment:

   • Senior candidates need to feel confident interpreting data at a strategic level.
   • Communication is key, particularly when presenting risk and impact to other departments.
   • Planning tools are now a regular feature in briefs for public sector recruitment.
     
     
3. Sustainability is moving into the finance brief

   The government’s new Sustainability Disclosure Standards are expected to apply across the public sector from 2025. Local authorities are already being asked to report on environmental costs, emissions data, and social value, and finance teams are playing a leading role in this work.

   What this means for recruitment:

   • ESG knowledge is becoming more relevant at senior finance level.
   • Roles may require experience working alongside sustainability or procurement leads.
   • Local government recruitment is starting to reflect this shift in both job design and expectations.
     
     
4. Finance is more embedded in service planning

   As service delivery becomes more joined-up, finance professionals are expected to play a greater role in shaping strategy. This means being involved in everything from cross-department budget planning to frontline service redesign.

   What this means for recruitment:

   • Collaboration skills are becoming a core requirement, not a nice-to-have.
   • Strategic insight across housing, education or care is highly valued in senior candidates.
   • Public sector jobs in finance are broader than they were five years ago.

What makes a strong finance leader today?

Hiring into senior finance roles has changed. Today’s leaders must balance service priorities, lead transformation, and support informed decision-making at every level. For employers, understanding what that looks like on a day-to-day basis is key to a successful recruitment process.

These are the qualities employers are prioritising in public sector recruitment:

• Communication skills: The ability to explain financial decisions clearly and respond well under pressure.
• Political awareness: A sound understanding of local policy and the confidence to advise senior stakeholders.
• Collaboration: Strong relationships across departments are now a standard part of the role.
• Focus: Leaders need to keep delivery on track, even during uncertainty.
• Strategic input: The role often includes contributing to long-term planning and organisational change.

Understanding the brief is only part of the picture. The right person also needs practical experience that reflects how local government jobs are changing, including understanding: 

• Digital systems: Supporting system upgrades and improving financial reporting.
• Audit and assurance: Managing internal controls and maintaining transparency.
• Cross-functional delivery: Working closely with operational leads and frontline teams.
• Planning and forecasting: Using data to support strategy and financial resilience.
• ESG and reporting: Contributing to sustainability and social value tracking.

Clear priorities help shape stronger job descriptions, more focused interviews, and better long-term appointments. In senior public sector recruitment, that clarity is essential to finding leaders who can meet today’s demands and grow with the role.

How to attract and retain senior finance professionals

Recruitment is only one part of the challenge. Once you understand what today’s finance leaders need to succeed, the focus shifts to how you attract them and how you keep them. 

For many employers in local government and the wider public sector, that means making small but meaningful changes to how roles are shaped, supported and promoted. Getting it right early on can make a big difference to both performance and retention.

What senior finance professionals are looking for in 2025:

• Flexibility and autonomy: Hybrid working is now expected in most senior roles. Clarity around working patterns helps avoid dropouts later in the process.
• Progression and development: Candidates want to see long-term potential. Roles that show a clear route forward are more likely to attract and retain the right person.
• Purpose and visibility: Finance leaders are motivated by impact. Highlighting how the role connects to wider service delivery or transformation work can make a real difference.
• Support from senior leadership: Strong working relationships with Chief Executives or service directors are often a deciding factor.
• A well-resourced team: Leaders want to know they’ll be set up to succeed. That includes clarity on team structures and plans for development or recruitment.

Meeting these expectations starts with how roles are shaped, briefed and delivered. Below are four practical ways public sector employers can improve recruitment outcomes and enhance senior-level retention.

Interim support keeps things moving

When recruitment takes time, interim professionals can help maintain delivery and reduce pressure on teams. They also give space to reassess the role before making a permanent hire.

• Support core finance work during gaps.
• Provide stability during change.
• Protect progress on transformation projects.

This is a common strategy in local government recruitment, especially during leadership restructuring.

Progression is a key part of attraction

Many senior candidates are asking what happens after year one. A clear path for development or influence helps show that the role has longevity.

• Be open about growth opportunities.
• Show where the role fits in the wider leadership team.
• Share plans for the team or function.

We’re seeing this more often in Head of Finance roles, where longer-term scope is a major factor in candidate decisions.

A clear brief avoids delays

Uncertainty around responsibilities or reporting lines slows everything down. When roles are well defined, recruitment moves faster and retention improves.

• Confirm key duties and expectations internally.
• Be clear on structure and reporting.
• Make sure all parties are aligned before going to market.

This helps avoid mismatches, especially in senior public sector jobs with shared oversight.

Specialist recruiters can support every stage

Using a public sector recruitment agency adds more than reach. It helps shape the brief, set realistic timelines, and bring in candidates who are right for the role.

• Gain insight into market expectations.
• Reach passive and active candidates.
• Reduce pressure on internal teams.

Sellick Partnership supports public sector employers across the UK with senior finance recruitment, including both interim and permanent roles.

Final thoughts on finance leadership and recruitment

Finance leadership in local government is changing. Senior professionals are taking on broader responsibilities, often with less certainty and greater visibility. This shift is influencing how employers recruit, what they prioritise, and how they support teams after someone starts.

Understanding the pressures, planning ahead, and being clear about expectations from the start will help employers recruit more effectively and build finance teams that are equipped to lead through change.

Looking for your next Section 151?

We support public sector organisations across the UK to hire experienced finance professionals at all levels. Whether you’re recruiting a permanent Section 151/Deputy Section 151, Head of Finance, or Finance Director, are building out a new leadership team, or need interim support, we can help.

Get in touch to start your next search with a team that understands public sector recruitment.