What did the Local Government Association say about council finances in 2026?: The LGA's Spring Statement submission found that 22% of upper-tier councils were balancing 2026/27 budgets only through Exceptional Financial Support, concluding that EFS arrangements 'are no longer exceptional, but are becoming an ever more relied upon mechanism'.Source: Local Government Association
What is the Local Government Association?: The Local Government Association is the cross-party membership body representing councils in England and Wales. It includes Conservative, Labour and Liberal Democrat council leaders and lobbies central government on funding, legislation and service pressures.
How many councils are on Exceptional Financial Support in 2026?: The LGA found 22% of upper-tier councils responsible for adult social care, children's services and statutory housing are on Exceptional Financial Support for 2026/27.Source: Local Government Association

Background

The Local Government Association is the cross-party membership body representing councils in England and Wales. In its Spring Statement submission ahead of the 7 May 2026 elections, the LGA found that 22% of councils responsible for adult social care, children's services and statutory housing were balancing their 2026/27 budgets solely through Exceptional Financial Support — the Treasury's emergency rescue mechanism for authorities unable to set a legal budget. Its verdict: EFS arrangements 'are no longer exceptional, but are becoming an ever more relied upon mechanism'.

The LGA is a politically balanced body — its leadership includes Conservative, Labour and Liberal Democrat council leaders — giving its interventions cross-party credibility that individual councils cannot provide. It lobbies central government on funding settlements, legislative changes and service pressures.

The Spring Statement finding landed in the middle of a local election campaign in which council finance had become a central issue, with Birmingham, Nottingham and Thurrock's Section 114 notices providing the high-profile backdrop. The LGA's data gave all parties statistical evidence to deploy, though they differed sharply on causes and remedies.

How the World Sees Them

HM Treasury

Treats EFS as targeted and time-limited emergency support; has not accepted the LGA framing that it is now a structural feature of the local government finance system.

Council leaders (all parties)

The LGA's cross-party finding gives political cover to all sides: Labour blames underfunding from Conservative years; Conservatives blame Labour spending; both use the data.