More financial support for struggling councils

The government has announced that councils struggling to balance their books will be granted financial flexibility by the government to ensure they can continue to provide vital community services.

Subject to meeting conditions, some local authorities will be issued support, through Exceptional Financial Support. This will allow them to use their capital funding, including receipts from sales and borrowing, to cover day-to-day costs.

Minister for Local Government and Homelessness, Alison McGovern said: “People in deprived areas have been let down for too long, with councils in the poorest areas left on their knees and services cut back as a result.  

“The support we’re announcing is critical for the councils, and we are doing everything we can to ensure councils can balance the books, including by making £78 billion available through the first multi-year settlement in a decade.”