Councils set to receive support package to improve services
Financial aid is assured for Gloucester, Somerset, Swindon, and Worcestershire - among others
Councils across the South West are poised to receive critical financial backing to aid in the improvement of essential services, particularly in areas experiencing deprivation.
Among the beneficiaries are Gloucester, Somerset, Swindon, and Worcestershire, all of which have been assured multimillion-pound financial support.
Gloucester is set to receive £9.05 million in principle for general support, alongside £2.56 million and £3.89 million earmarked for 2025-26 and 2024-25 respectively.
Somerset's support figures have been updated, now standing at £45.118 million for 2025-26, revised from an initial £63 million.
Swindon will benefit from £22.3 million in principle support, while Worcestershire's allocation totals a significant £59.933 million.
These councils are among 37 authorities nationwide identified as requiring exceptional financial support to fulfill their legal obligation of delivering balanced budgets.
Capitalisation support, pending final confirmation, will enable these councils to utilize capital funding such as receipts from sales and borrowing to cover everyday expenses.
A Government review, considering the latest deprivation indices, has led to a revamped method for funding distribution, addressing local needs and the true costs of service provision in disadvantaged areas.
Local government minister Alison McGovern emphasised the importance of this support, criticising the effects of past austerity and centralisation: “People in deprived areas have been let down for too long, with councils in the poorest areas left on their knees and services cut back as a result."
The implementation of reforms signifies a shift, with more deprived areas receiving significantly better funding, about 45% more per head compared to less deprived regions.
The multi-year funding agreement, described as "record-breaking," offers £78 billion to local government, a pivotal move in ensuring councils can recover from previous financial shortcomings.
This initiative is part of a broader effort by the Government to allocate resources effectively, facilitated by new local need assessments.
Education Secretary Bridget Phillipson added the ongoing reforms in schools would ensure sustained support for children with complex needs.
The Ministry of Housing, Communities, and Local Government confirmed that 90% of accumulated deficits related to high needs support until 2025-26 will be absolved, amounting to more than £5 billion.
Ms McGovern remarked on the necessity for transformation to achieve sustainable recovery, contrasting the current administration's approach with prior government strategies.