Ellie Ames 29 February 2024

Councils set for £2.5bn in exceptional financial support

Councils set for £2.5bn in exceptional financial support image
Image: gov.uk

The Department for Levelling Up, Housing and Communities (DLUHC) has agreed to grant 19 local authorities ‘in principle’ capitalisation directions worth almost £2.5bn.

Capitalisation directions worth £1.5bn have been agreed for the 19 authorities for 2024-25, with support for 2023-24 also agreed for 11 of the councils.

More than £1.2bn has been agreed for Birmingham City Council alone, with £685m for 2024-25 and a further £570m covering 2020-23.

The chair of the Special Interest Group of Municipal Authorities (SIGOMA), Sir Stephen Houghton, said the extent of the agreed support reveals the ‘extraordinary’ financial crisis facing local government.

He added: ‘This exceptional financial support will be welcome as a stopgap for those councils that have applied, but will not provide a long-term solution, solve the current systemic issues in local government finances or stop councils from having to make severe cuts in services.’

The chief executive of the Local Government Information Unit, Jonathan Carr-West, said: ‘We know how desperate these councils were to receive this exceptional support. For them, it is a last-minute reprieve that wards off immediate financial collapse.’

He added: ‘But we should not mistake this for generosity on the part of the Government.

'They are simply allowing councils to borrow and to sell their own assets. We should not mistake [this] announcement for a sustainable long-term solution to local government funding.’

A DLUHC spokesperson said: ‘This is about having a pragmatic approach and agreeing financial flexibilities with a small number of councils – as we have done in previous years – to help them balance their budgets and deliver vital services.

‘Nearly three quarters of the support announced this year relates to six councils where there has been severe local failure, forcing the Government to step in and take action through statutory intervention.’

The councils set to receive financial support are: 

  • Birmingham
  • Bradford
  • Cheshire East
  • Croydon
  • Cumberland
  • Eastbourne
  • Havering
  • Medway
  • Middlesbrough
  • North Northamptonshire
  • Nottingham
  • Plymouth
  • Slough
  • Somerset
  • Southampton
  • Stoke-on-Trent
  • Thurrock
  • West Northamptonshire
  • Woking

SIGN UP
For your free daily news bulletin
Highways jobs

Social Care Placements Programme Lead

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,434 - £52,632

Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Recovery Worker Substance Misuse

Essex County Council
£30931 - £35362 per annum + + 26 Days Leave & Defined Benefit Pension
Recovery Worker Substance MisusePermanent, Full Time£30,931 to £35,362 per annumLocation
Recuriter: Essex County Council

Principal Transport Officer

Old Oak and Park Royal Development Corporation
£63,112 per annum
leading the capital’s largest new regeneration project. Brent Civic Centre (32 Engineers Way, Wembley, HA9 0FJ).
Recuriter: Old Oak and Park Royal Development Corporation

Senior Occupational Therapist

Essex County Council
£43477 - £52302 per annum + Flexible Working, Hybrid, CPD, Gov Pension
The role will be responsible for supporting adults to develop their abilities to enable them to live as independently as possible. This may include England, Essex, Harlow
Recuriter: Essex County Council

Director of Commissioning and Performance

Northumberland County Council
£100,157 - £109,081
We are looking for an individual to help us achieve excellence in adult social care in Northumberland. Northumberland County Council, Morpeth, United Kingdom
Recuriter: Northumberland County Council
Linkedin Banner

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.