Exceptional financial support 'provides clarity'

The government's decision to grant Warrington Council exceptional financial support gives the local authority "immediate clarity" on its financial position, it has said.

A total of £92.047m has been allocated in principle for Warrington during the next financial year. It is the highest level awarded to any council in England.

Exceptional Financial Support (EFS) is not additional funding. Rather, it allows councils to borrow money to cover some of its day-to-day spending. Usually, money can only be borrowed for longer-term capital expenditure.

The council said the decision meant it now had "the opportunity to become financially sustainable".

Warrington Council is one of six councils in the North West to be awarded EFS.

A total of £87.29m has already been allocated for the current financial year.

The local authority has also been given permission by the government to increase council tax bills by up to 7.5% from April.

Warrington Council has faced significant financial issues after building up £1.9bn of debt, due mainly to its investment programme.

Ministerial envoys were appointed to work with the council last summer.

Earlier this year, the local authority said its commercial approach"had failed" and has now reduced its debt to £1.4bn.

Denis Matthews, the council's cabinet member for finance, said the confirmation of EFS was "gratefully received".

"While EFS is a time-limited and temporary measure, having confirmation... for this financial year and next means that we have the opportunity to become financially sustainable," he said.

"With the support of our ministerial envoys, we are working up credible plans that will ensure we can ultimately live within our means.

"The council will need to become smaller in parts, focusing our money and resources on services that most improve and support our residents.

"EFS gives us this one important chance to change for the better, and become a sustainable, modern and efficient council."

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