MHCLG grants Exceptional Financial Support to 37 councils for 2026-27
The Ministry of Housing, Communities and Local Government (MHCLG) has granted Exceptional Financial Support to 37 local authorities for the 2026-27 financial year, with amounts ranging from £5m to £121m. The support, totalling over £1.5bn, allows councils to use capital funding including receipts from sales and borrowing to cover day-to-day costs, subject to rigorous conditions including complete financial assessments. Notable recipients include Shropshire (£121m), Croydon (£119m), and Warrington (£92m). The City of London receives separate £2.65m support for its Housing Revenue Account. Six councils remain under statutory intervention: Birmingham, Croydon, Slough, Thurrock, Woking, and Warrington. Birmingham's support profile for previous financial years has been revised, with 2024-25 support reduced from £491.1m to £405.7m and 2025-26 support reduced from £180m to £36.7m. The Exceptional Financial Support process, established in 2020, enables councils facing financial failure to set balanced budgets through capitalisation directions that will be formally issued once final amounts are confirmed.