Central government has introduced measures to help local authorities manage budget overspends. In 2020–21, MHCLG introduced the Exceptional Financial Support (EFS) framework to help local authorities that are in financial trouble.57 Since then, 42 local authorities have received over £5 billion of support through EFS.58 Thirty local authorities received support in 2025–26 to help them balance their budgets.59 Councils need to either sell off capital assets or borrow to raise these funds.60 In most cases, MHCLG has provided support through allowing local authorities to use capital finances to fund day-to-day spend.61 Written evidence we received from CIPFA explained that this does not result in significant additional funding being provided to the Councils affected.62 Iain Murray from CIPFA told us that an increasing number of councils that are otherwise well run are finding themselves in financial difficulties.63