Exceptional Financial Support (EFS)
Councils face significant budget shortfalls and rising costs, with some anticipating or planning to reduce reliance on Exceptional Financial Support.
Haringey Council is facing a £21.7 million budget shortfall for the current financial year, attributed to base budget pressures and non-delivery of planned savings, according to a September 2026 report to Cabinet. In September 2026, Havering Council reported an estimated £45 million overspend in its Dedicated Schools Grant, primarily due to increasing demand for specialist educational support. Barnet Council also forecast a £2.6 million overspend for Q1 2026-27, with its Medium Term Financial Strategy indicating Exceptional Financial Support will be required in 2027-28.
Croydon Council's Cabinet approved a financial strategy in July 2026 aimed at achieving financial sustainability and ending its reliance on Exceptional Financial Support, addressing approximately £1.1 billion in debt. Redbridge Council faced a projected £5.4 million budget overspend for the current financial year, with its Cabinet discussing the borough's financial performance in July 2026. Lambeth Council also projected a £15.9 million overspend for 2025/26, driven by demand-led services.
Exceptional Financial Support is temporary financial assistance provided by the government to local authorities facing significant financial difficulties, often due to rising demand for services like social care and housing, and funding gaps. Councils are working through how to manage these pressures and reduce their reliance on such support.
Key facts
- Haringey Council faces a projected budget shortfall of £21.7 million for the current financial year. Source
- Havering Council is facing an estimated £45 million overspend in its Dedicated Schools Grant. Source
- Barnet Council forecasts a £2.621 million overspend for the first quarter of 2026-27. Source
- Barnet Council's Medium Term Financial Strategy indicates Exceptional Financial Support will be required in 2027-28. Source
- Croydon Council's Cabinet approved a financial strategy in July 2026 to end its reliance on Exceptional Financial Support. Source
About this summary
This summary was written automatically from our published stories and the council meeting records they draw on. It describes what councils have discussed and decided; it does not take a view on any decision. Each key fact links to the story it comes from. Updated 30 September 2026. Spotted a mistake? Email community@opencouncil.network.