54 Accepted

Publish supporting information demonstrating necessity and form of new Exceptional Financial Support cases.

Recommendation
When the Ministry announces new cases of EFS, it must publish alongside its announcement sufficient supporting information to demonstrate how it determined that EFS was necessary, how much it would provide, and what form it would take. This published information should be the same information that the Ministry used to make its decision. (Recommendation, Paragraph 205)
Government Response Summary
The government states it already maintains transparency regarding EFS and publishes external assurance reviews, which cover the reasons, assessment, and amount of support, on GOV.UK.
Government Response
Accepted
HM Government Accepted
The Government has always maintained transparency regarding which councils have been in receipt of EFS and the amount of support provided. As part of the EFS framework, councils are required to undergo an external assurance review of their financial position ahead of being issued with a formal capitalisation direction. These reviews cover the reason for a council’s request for support, provide an assessment of the support request and are all published on GOV.UK.
Source
Committee Housing, Communities and Local Government Committee
Inquiry The Funding and Sustainability of Local Government Finance
Report 2nd Report - The Funding and Sustainability of Local Government Finance 23 Jul 2025 HC 514
View on Parliament website
Addressee Bodies
Ministry of Housing, Communities and Local Government
Timeline
Recommendation age 0.9 yr
Report published 23 Jul 2025