The capitalisation directions requested by several councils for 2024/25 have been agreed in-principle by the government.
A Best Value Notice has also been issued at Bradford Council, one of the beneficiaries of Exceptional Financial Support, over “serious concerns” highlighted in a CIPFA review around financial resilience and a children and families trust.
In total, 19 councils will receive capitalisation directions in 2024/25, with 11 councils receiving support for prior years. The financial support is intended to allow the councils to set a balanced budget for the upcoming financial year, and avoid having to issue a section 114 notice for those who have not already done so.
Birmingham City Council will receive £685m in 2024/25, and £570.1m covering the 2020/21, 2021/22 and 2022/23 financial years.
In other high-profile cases of effective bankruptcy, Woking will get £95.6m in government support for 2024/25 and £235.1m for 2023-24, while Nottingham will receive £41.143m and £25.0m respectively for the same financial years.
Capitalisation directives of £68.6m at Thurrock, £23.078m at Slough, and £38.0m at Croydon have also been agreed in-principle for 2024/25, with a further £9.439m at Croydon for 2019-20.
Bradford, which will now be expected to establish an independent advisory panel that has expertise in finance and children’s services, will receive £140m in support in 2024/25, and £80m for 2023/24.
As reported, Havering will receive a capitalisation direction of £54m. This encompasses £32.5m in 2024/25 and £21.2m for 2023-24.
The other beneficiaries of 2024/25 capitalisation directions are Cheshire East (£6.0m plus £11.6m for 2023/24); Cumberland (£41.23m); Eastbourne (£3m plus the same for 2023/24); Medway (£14.742m); Middlesbrough (£13.4m); North Northamptonshire (£3.9m covering 2023/24 and 2024/25); Somerset (£76.9m); Southampton (£121.58m); Stoke-on-Trent (£21.7m plus £20.5m for 2023-24: and West Northamptonshire (£6.6m).
Plymouth has had £72m in support agreed in-principle for a historic accounting correction in 2019-20.
The government said it would confirm the final amounts of capitalisation agreed and capitalisation directions issued in due course.
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