It wouldn't be an understatement to say that almost all local authorities across England feel themselves to be in a state of permacrisis. Major budgetary reductions, combined with expanding mandates and increasing service demand have left local government in an untenable position. Every council leader is grappling with how they serve the public in ever more challenging circumstances.

Yet, many readily acknowledge they are yet to seriously consider the consequences Generation Z will have on the sector. While not as immediate as current fiscal challenges, this new generation provides an opportunity to think about the future of the sector, how local government will serve their communities over the long-term, and how to move beyond permacrisis.

In only six years, every member of Generation Z (those born between 1997-2012) will have stepped into adulthood. Over the last year, Oliver Wyman has conducted research with thousands of ‘Gen Zers' across the UK to understand how their attitudes differ from previous generations. We've identified a host of distinctive values and behaviours that will demand fresh approaches from local government leaders.

Gen Z will force local government to rethink how they engage this emerging demographic as citizens, as users of their services, and as the future workforce. Now is a pivotal moment to start developing strategies to engage this new generation and, in doing so, start to rethink the future of local government.

Gen Z as citizens – the activist generation

Generation Z are new kinds of citizens, distinguished by their heightened focus on civic engagement and community activism. Local government can expect Gen Z to be an activist generation, demanding more engagement from local authorities on their social and political concerns. Demonstrating visible commitments on diversity and inclusion, climate change, inequality, and criminal justice, the topics Gen Z say are top of mind, are vital to engage this young demographic.

We see this expectation for local government to take action in the survey data. Some 25% of Gen Z say local government is responsible for addressing major global issues such as climate change, compared with fewer than 20% of older generations. This reflects a broader trend we see across the demographic, that they see themselves as both local and global citizens – demanding local responses to macro challenges.

So while this adds another layer of challenge for local authorities feeling the increasing weight of service delivery, there is encouragement that Gen Z tends to have more trust and belief in local government than older generations (82% report having some or a high level of trust in local governments, compared with 66% in other cohorts). The opportunity for local government leaders is to harness the energy of this more civic-minded generation to drive meaningful community engagement and change.

Gen Z as service users – an opportunity to pivot

The level of engagement between Gen Z and local government services is only going to increase with time, bringing with them new expectations about how services are delivered. The most immediate shift will be in how local government needs to communicate with Gen Z. This cohort leans heavily on social media for news and information, with more than 50% citing it as their main source of news. They also much prefer short-form video content over TV, radio, or print media. Local government leaders will increasingly need to pivot their outreach efforts towards social platforms to engage Gen Z, balancing this alongside the more traditional media habits of older generations which also presents an interesting opportunity, and challenge for local democracy.

This is not just a challenge of engagement; Gen Z also has markedly different expectations about the way local government services are delivered. Their preference is for digital-first services with the utilisation of online platforms, mobile apps, and emerging AI tools; but pivoting towards new modes of delivery without alienating older generations is a challenge local government knows all too well. With the pace of this technology being so rapid it cannot be an afterthought, generative AI is poised for omnipresence in our everyday lives which of course presents risk. Yet many would argue it also presents an opportunity to reclaim resources to maximise efficiency and prioritise citizen connection.

Gen Z as employees – new expectations

As with many other sectors, attracting Gen Z talent poses a significant challenge for local government. Our research suggests Gen Z feels much more defined by their job than older generations and more often want to have unconventional, entrepreneurial career paths. The risk for local government is that overly rigid organisational structures and roles will lack the flexibility Gen Z craves. Developing innovative or self-directed career pathways, or simply allowing Gen Z time to dedicate to their side-hustles, will be key to retain talent over the long term.

Local government needs to continue to adapt to the changing working habits and preferences of Gen Z, to signal that they understand their different expectations about ways of working. More than 20% would like to use more text-based communication, such as through collaboration apps, compared with phone and video calls. Not only that but, when they are on video calls, Gen Z is also more likely to prefer to work ‘camera-off'. This will require a mindset shift for many, embracing new behaviours and expectations when working with younger colleagues.

There are no simple prescriptions here, but the survey data offers a nudge for local government to step outside of their own expectations about current work practices.

The time for local government to start thinking about Gen Z is now. The unique characteristics of this generation offers a glimpse into the future of local government, the citizens they will serve, the services they deliver, and the employees that will make up their teams. Embracing this generation's values and preferences not only positions local government to effectively serve this demographic going forward but unlocks opportunities for innovation, efficiency, and enhanced community engagement.

The challenge for all local government leaders is to recognise this is not a change to anticipate for the future but a transformation that is already well under way.

Victoria Evans is partner and local public services lead at Oliver Wyman

 Victoria.Evans@oliverwyman.com

X – @OliverWyman