Title

FINANCE

Counting the cost of rectifying exceptional financial support to councils

The scale of the problems exceptional financial support is intended to tackle highlights the need for structural funding reform, say sector experts. David Blackman reports.

© futuremedway.co.uk

It has become glaringly apparent over recent years that the Government's exceptional financial support (EFS) scheme for councils is very far from ‘exceptional'.

The EFS regime, which offers authorities a way to avoid falling into deficit by allowing them to use capital funding to cover day-to-day costs, was developed to provide cash-strapped councils with a financial lifeline and was expanded during the Covid-19 pandemic.

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