Arcus Global rides UK council cloud shift

Arcus Global says demand is rising as UK councils consolidate legacy systems onto cloud platforms ahead of local government reorganisation and wider digital reforms. The GovTech vendor reported 26% recurring revenue CAGR since 2022, 88% customer recommendation scores and expanding use across more than 60 public sector organisations.

Why it matters: - UK councils are under pressure to replace fragmented legacy systems with unified cloud platforms. - Local Government Reorganisation is forcing many authorities to consolidate planning, licensing, environmental health and citizen-service systems into one operating model. - Better-structured data is also becoming a prerequisite for AI and automation in local government.

What happened: - Arcus Global said it has recorded strong year-on-year growth as local authorities accelerate modernisation. - The company reported 26% compound annual growth in recurring revenue since 2022. - Arcus Global said its latest customer survey returned an “outstanding” score for service and product quality. - 88% of respondents said they would recommend Arcus Global’s products. - The company serves more than 60 UK public sector organisations, including Westminster Council and West Sussex County Council.

The details: - The Local Government Association’s State of Digital Local Government report found that 48% of councils report skills gaps in management teams that support digitalisation and technology use. - The government’s Local Government Reorganisation programme will replace England’s two-tier council system with larger unitary authorities. - Nearly 20 million people in the UK live in areas affected by the restructuring. - In March 2026, the Secretary of State confirmed the first wave of new authority structures in Essex, Hampshire, Norfolk and Suffolk. - New councils are expected to vest from April 2028. - Arcus Global’s Salesforce-native system of record covers environmental health, licensing, planning, building control and citizen services from a single data model. - The platform is designed to replace disconnected applications that can block digital transformation. - The company said 98% gross customer retention has been maintained since 2020. - Nearly 50% of Arcus Global’s ARR growth this year has come from expansions with existing customers. - Councils that started with one module are extending the platform across more departments and functions. - Arcus Global said those expansions have been driven by projects delivered on time and on budget.

Between the lines: - The shift to unified platforms is as much about operating resilience as it is about service improvement. - Councils that standardize data now may be better positioned for future AI deployment and workflow automation. - Local government reorganisation is turning a long-running technology upgrade into a near-term requirement. - The growth pattern suggests existing customers are a major source of expansion, not just new contract wins.

What’s next: - More councils are expected to accelerate system consolidation as reorganisation plans progress. - Arcus Global said the larger post-reorganisation councils will create further opportunities for integrated, natively digital services. - The company is continuing to invest in development and R&D. - More information is available in the company’s announcement and on Arcus Global’s LinkedIn page.

The bottom line: - Arcus Global is benefiting from a bigger UK council push to simplify systems, unify data and prepare for AI-ready public services.