THE Government has confirmed that debt-ridden Warrington Borough Council is able to access Exceptional Financial Support (EFS).
Following failed risky investments and debts of around £1.4b, confirmation in principle was given yesterday, Monday 23 February, that the Council will be able to access £87.029million of EFS this financial year (2025/26), and £92.047 million next financial year, 2026/27, to support plans for financial sustainability.
This follows confirmation earlier this month that the Council would be able to increase Council Tax in 2026/27 by 2.48% above the normal 5% cap, to an overall 7.48% increase.
Earlier this month, the Council submitted an amended EFS request of £354 million over five years, up to 2029/30.
EFS is effectively a form of government loan that needs to be paid back over 20 years. In Warrington’s case, EFS comes through the mechanism of a capitalisation directive. This means that the Council has been given permission to treat day-to-day spending (known as revenue) as if it were longer-term capital spending funded through borrowing, which councils can’t usually do.
Confirmation of the two-year package gives the Council the opportunity to establish and deliver credible plans to begin closing its overall £178.9 million gap up to 2029/30. The Council has identified £40 million of savings, and EFS will now provide the mechanism for the Council to make further significant changes and savings, as it works to become financially sustainable.
Government process means that EFS in-principle agreements are granted for up to two financial year periods at a time. The two-year package that has been agreed with the Council does not therefore mean that the Council will not be able to agree further EFS support as needed in future years, as part of its four-year plan.
Cabinet member for finance, Cllr Denis Matthews, said: “Confirmation from government of this initial EFS support package is gratefully received, as it gives us immediate clarity on our financial position going forward.
“While EFS is a time-limited and temporary measure, having confirmation of EFS support for this financial year and next means that we have the opportunity to become financially sustainable.
“With the support of our Ministerial Envoys, we are working up credible plans that will ensure we can ultimately live within our means. The Council will need to become smaller in parts, focusing our money and resources on services that most improve and support our residents.
“EFS gives us this one important chance to change for the better, and become a sustainable, modern and efficient council.”
On Monday, 2 March, Full Council – a meeting of all elected borough Councillors – will meet to discuss and be asked to approve the Council’s budget for 2026/27. This will include considering the overall EFS support package available and the initial £40 million of savings being proposed.
