Title

FINANCE

Transformation is not a one-off project

Convenient temporary financial fixes may keep authorities afloat, but do not build the foundations for long-term stability, says Iain Murray.

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Almost 10% of English councils are now reliant on exceptional financial support (EFS). And the scale of reliance is striking. In 2024-25, 19 councils received £1.5bn of support, with CIPFA asked to review 12 of them. By 2025-26, that number grew to 30. It is reasonable to predict that this figure will rise further as councils face another challenging round of financial planning.

CIPFA's reviews highlighted four recurring risks. First, weaknesses in organisational planning, governance and culture. Second, failure to deliver agreed savings or maintain reserves. Third, demand-driven cost pressures, particularly in adult and children's social care. And fourth, over-reliance on commercial activity or asset sales to plug gaps. These issues aren't confined to the handful of authorities in the headlines. They are patterns any council could recognise.

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