More councils poised to ask for exceptional financial support, LGA warns

The Local Government Association has called for the Autumn Budget to ensure councils' financial stability after a new survey revealed that one in four councils in England are likely to apply for emergency government bailouts in the next two financial years.

The LGA said its survey of 195 councils suggests a worsening crisis with a growing number of councils being pushed closer to the financial brink and likely to need exceptional financial support (EFS) packages.

A record 18 councils have already received EFS from the Government this year.

The survey found that more councils are likely to seek support, with 25% of councils likely to apply for EFS in 2025/26 and/or 2026/27.

Around one in 10 councils meanwhile reported that they have discussed the possibility of requesting EFS from the Ministry of Housing, Communities and Local Government this year.

In addition, 44% of councils with social care responsibilities said that they are likely to apply for EFS in 2025/26 and/or 2026/27 without additional government funding.

The survey also found that social care authorities identified children's social care (93%), adult social care (90%), SEND services (80%), school transport (65%), and homelessness (64%) as their most pressured services.

Shire districts meanwhile reported homelessness (85%) and waste services (82%) as their top concerns.

The survey also found that 8 in 10 councils say services and support for disabled adults and/or older people are likely to face cutbacks.

Service cutbacks are also likely in services and support of children, young people and families (63%).

The LGA has called on the Chancellor of the Exchequer, Rachel Reeves, to take "immediate" action in the Autumn Budget, set to be delivered on 30 October, to stabilise council finances.

Cllr Louise Gittins, LGA Chair, said: "The unprecedented emergency support given to councils this year reveals the extraordinary funding emergency facing local government. As our survey shows, many more councils are being pushed into a precarious financial position.

"This is not just about numbers on a spreadsheet. Budget cuts needed to plug growing funding gaps will affect the most vulnerable members of society and the services our communities rely on every day.

"The Autumn Budget must provide councils with the financial stability they need to protect the services our communities rely on every day."

Adam Carey