Exceptional financial support for local authorities
Details of support granted to local authorities that have requested exceptional financial support during the COVID-19 pandemic.
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Added Croydon and Eastbourne capitalisation directions for 2021-22.
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Added governance reviewer appointment letters (Peterborough, Wirral & Slough).
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Added Redcar and Cleveland grant determination.
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Added Croydon and Nottingham capitalisation directions.
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Added Wirral capitalisation direction
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First published.
Documents
Details
TheSince 2020, the government has given considerable support to the local government sector to respond to the COVID-19 pandemic.
However, as a result of particular local circumstances, a small number of individuallocal authorities haveapproached uniquethe circumstancesgovernment orfor residualexceptional issuesfinancial support to help them address financial pressures that havethe resultedconsidered inunmanageable.
Government unmanageabletherefore pressures,agreed andto haveprovide madeadditional financial support to these authorities on an exceptional basis, and on the localcondition decisionthat each council was subject to approachan theexternal governmentassurance review on their financial position (apart from Nottingham City Council and Croydon Council which were both subject to requestnon-statutory support.external reviews during 2020).
The governmentexternal hasassurance thereforereviews agreedwere topublished providein additional2021 and provided a detailed assessment of each authority’s financial supportposition and financial management, with clear recommendations on where the authority needs to thesetake action to improve. In the case of 3 authorities (Peterborough, Slough and Wirral), the external assurance reviews looked at both their financial position and wider governance arrangements, focusing on anthe exceptionalauthorities’ basis.ability to deliver a plan for financial sustainability with policies and procedures in place to ensure robust decision making and accountability.
The detailscapitalisation ofdirections support published above relate to support for the financial yearyears 2020-21.
2020-21 and 2021-22. A small number of authorities have also requested support in relation to unmanageable pressures in 2022-23. In these cases, the 2021-22government financialhas year,agreed eithersupport in additionprinciple subject to acontinued requestprogress foron 2020-21,their orimprovement justand forupdates 2021-22.
on their financial position during 2022-23. The governmentfinal hasamount agreedof support may therefore be subject to change and the government will publish a final outcome in principledue forcourse.
The thesegovernment’s authorities,approach subjectto the 2021-22 capitalisation directions and to in-principle agreements for 2022-23 reflect the outcomefindings ofand anrecommendations from relevant external assurance review.reviews. Therefore,As theindicated finalbelow, amounta small number of authorities who originally requested additional financial support mayfor be2021-22 subjecthave tosince change.withdrawn Wetheir willrequests publishwhere their financial position and pressures have changed. In all cases the government has set a finalclear outcomeexpectation that authorities respond effectively to the challenges and recommendations highlighted in duethe course.external assurance reviews, and provide regular updates to the government on progress.
Authorities that have requested support for both2020-21, 2020-212021-22 and 2021-22
2022-23
Local authority
CapitalisationSupport directions agreed for 2020-21In-principle support agreed infor respect2021-22
Support ofagreed for 2021-22
In-principle support agreed for 2022-23
BexleyCroydon£3.87m£70.0m£5.125m£50.0m£50.0m
£25.0m
EastbourneSlough£6.8m£127.8m (support agreed in-principle including prior year requests to 2018-19)£6.0m£15.2m£95.3m (support agreed in-principle)
£84.1m
Authorities that have requested support for 2020-21 and 2021-22
Local authority
Support agreed for 2020-21
In-principle support agreed for 2021-22
Support agreed for 2021-22
LutonBexley£35.0m£3.9m (capitalisation not utilised)£14.0m£5.1mCouncil no longer expects to require support for 21/22
PeterboroughEastbourne£4.8m£6.8m£20.0m£6.0m£4.4m
WirralLuton£9.0m£35.0m£10.7m£14.0mCouncil no longer expects to require support for 21/22
CroydonNottingham£70.0m£20.0m£50.0m£15.0mCouncil no longer expects to require support for 21/22
NottinghamPeterborough£4.8m (capitalisation not utilised)
£20.0m
£15.0mCouncil no longer expects to require support for 21/22
Wirral
£9.0m
£10.7m
To be confirmed
Authorities that have requested support for 2021-22 only
and 2022-23
Local authority
CapitalisationIn-principle directionssupport agreed for 2020-212021-22Support agreed for 2021-22
In-principle support agreed infor respect of 2021-222022-23
Copeland
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£1.5m
SloughTo be confirmed-To be confirmed
£15.2m
Authorities that have requested support for 2020-21 only
Local authority
Support agreed for 2020-21
In-principle support agreed in respect of 2021-22
Redcar and Cleveland
£3.68m£3.7m
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TheSince 2020, the government has given considerable support to the local government sector to respond to the COVID-19 pandemic.
However, as a result of particular local circumstances, a small number of individuallocal authorities haveapproached uniquethe circumstancesgovernment orfor residualexceptional issuesfinancial support to help them address financial pressures that havethe resultedconsidered inunmanageable.
Government unmanageabletherefore pressures,agreed andto haveprovide madeadditional financial support to these authorities on an exceptional basis, and on the localcondition decisionthat each council was subject to approachan theexternal governmentassurance review on their financial position (apart from Nottingham City Council and Croydon Council which were both subject to requestnon-statutory support.external reviews during 2020).
The governmentexternal hasassurance thereforereviews agreedwere topublished providein additional2021 and provided a detailed assessment of each authority’s financial supportposition and financial management, with clear recommendations on where the authority needs to thesetake action to improve. In the case of 3 authorities (Peterborough, Slough and Wirral), the external assurance reviews looked at both their financial position and wider governance arrangements, focusing on anthe exceptionalauthorities’ basis.ability to deliver a plan for financial sustainability with policies and procedures in place to ensure robust decision making and accountability.
The detailscapitalisation ofdirections support published above relate to support for the financial yearyears 2020-21.
2020-21 and 2021-22. A small number of authorities have also requested support in relation to unmanageable pressures in 2022-23. In these cases, the 2021-22government financialhas year,agreed eithersupport in additionprinciple subject to acontinued requestprogress foron 2020-21,their orimprovement justand forupdates 2021-22.
on their financial position during 2022-23. The governmentfinal hasamount agreedof support may therefore be subject to change and the government will publish a final outcome in principledue forcourse.
The thesegovernment’s authorities,approach subjectto the 2021-22 capitalisation directions and to in-principle agreements for 2022-23 reflect the outcomefindings ofand anrecommendations from relevant external assurance review.reviews. Therefore,As theindicated finalbelow, amounta small number of authorities who originally requested additional financial support mayfor be2021-22 subjecthave tosince change.withdrawn Wetheir willrequests publishwhere their financial position and pressures have changed. In all cases the government has set a finalclear outcomeexpectation that authorities respond effectively to the challenges and recommendations highlighted in duethe course.external assurance reviews, and provide regular updates to the government on progress.
Authorities that have requested support for both2020-21, 2020-212021-22 and 2021-22
2022-23
| Local authority | In-principle support agreed |
Support |
In-principle support agreed for 2022-23 | |
|---|---|---|---|---|
| £50.0m | £25.0m | |||
| £95.3m (support agreed in-principle) | £84.1m |
Authorities that have requested support for 2020-21 and 2021-22
| Local authority | Support agreed for 2020-21 | In-principle support agreed for 2021-22 | Support agreed for 2021-22 |
|---|---|---|---|
| Council no longer expects to require support for 21/22 | |||
| £4.4m | |||
| Council no longer expects to require support for 21/22 | |||
| Council no longer expects to require support for 21/22 | |||
| £4.8m (capitalisation not utilised) | £20.0m | ||
| Wirral | £9.0m | £10.7m | To be confirmed |
Authorities that have requested support for 2021-22 only
and 2022-23
| Local authority | Support agreed for 2021-22 | In-principle support agreed |
|
|---|---|---|---|
| Copeland | £1.5m | ||
Authorities that have requested support for 2020-21 only
| Local authority | Support agreed for 2020-21 | |
|---|---|---|
| Redcar and Cleveland |
Last updated
Update history
2023-03-02 14:00
Updated table with in-principle support agreed for 2023-24.
2022-11-24 14:27
Added Wirral capitalisation direction 2021-22.
2022-03-21 17:42
Added: Copeland capitalisation direction
2022-03-17 16:49
Added Croydon and Eastbourne capitalisation directions for 2021-22.
2021-04-07 15:14
Added Redcar and Cleveland grant determination.
2021-03-17 15:25
Added Croydon and Nottingham capitalisation directions.
2021-03-05 16:43
Added Wirral capitalisation direction
2021-02-10 21:42
First published.