It is fair to say that the ‘exceptional' in Exceptional Financial Support (EFS) is no longer exceptional. What was intended as temporary relief for a small number of authorities has become a rapidly expanding sticking plaster. At CIPFA, we are clear that EFS cannot be a permanent solution. It must remain transitional, alongside systemic reform.
With almost one in 10 councils in England now reliant on EFS, we are no longer talking about a handful of struggling authorities. Instead, we are witnessing the combined impact of a decade of underfunding, demographic pressures and rising demand. Our work with councils has highlighted the extent of this impact but also shone a light on the common characteristics of those in difficulty. These issues are systemic – and every local authority should take note if they are to plot a reliable path to recovery.
