County council gets £59.9m emergency budget help

The government has agreed that Worcestershire County Council can access up to £59.9m in emergency support to help fill a black hole in the budget.

The help, known as Exceptional Financial Support, comes after the council's Reform leadership said the authority was in "crisis" and facing effective bankruptcy.

It comes ahead of a vote on Thursday, when councillors will be asked to vote on a council tax rise of 9%, which would be one of the largest hikes in the authority's history.

In a letter, local government minister Alison McGovern said she recognised "the challenging context" councils were facing.

Her letter also said the council would have to undertake a fresh review of its finances, working alongside central government, to see what new steps needed to be taken to save cash.

"Given the support we have agreed to, it is my clear expectation that your council is fully engaging with these reforms and has robust plans in place to take the action needed to deliver better and more efficient services, as part of your financial recovery," McGovern said.

The council has already scrapped £30m in capital spending, which includes ditching a planned revamp of Redditch Railway Station and some highways improvements.

It is also withdrawing vacant job posts in areas like IT, finance and HR as part of a plan to save £9m, alongside the proposed 9% council tax rise for 2026-27.

The previous Conservative leadership, which lost control of the authority at last year's elections, used the same emergency mechanism to borrow £33.6m last year.

It is described as a "capitalisation direction" by the Institute for Government - a move that allows a council to sell assets or borrow to fund day-to-day costs.

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