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Exceptional Financial Support is no longer exceptional and lacks long-term funding strategy.

Conclusion
Written evidence we received highlighted that EFS was no longer considered exceptional and there were concerns that some local authorities required measures ‘over and above’ the EFS framework, given the scale of their financial distress.64 MHCLG told us it recognised that whilst EFS provided support in the short term, it formed “part of a toolkit”, and was not a long term strategy to deal with local government funding.65 It added that it saw EFS as a short-term intervention until it can make the more fundamental changes it plans.66
Government Response

A response document is linked to this report, dated 18 September 2025. Response attribution to this conclusion has not been verified. Read the response document.

Addressee Bodies
HM Treasury
Timeline
Recommendation age 1.2 yr
Report published 18 Jun 2025