There are 2.6 million people employed in government and a very large proportion of these have managerial responsibilities. They are faced with a very rapid rate of change and many of the old ways of managing are proving less effective. The new government elected in 1997 is adding to these challenges through the reforms it is seeking - this will create a new style of local government. This text: examines the new role of the local government manager; identifies five themes of the new local governement; deals with crisis management; outlines the traditional responsibilities of managers for making and managing budgets; and focuses on the relationship between managers and service users.