"We have received the news today that the government is minded to approve our application for Exceptional Financial Support (EFS) which will be used to help with our programme of transforming the services we provide to our residents.
Today’s announcement means we now have the ability to utilise up to £41.23m through a capitalisation direction to support our service transformation plan and also cover the additional costs associated with bringing services together after local government reorganisation (LGR). These initial additional costs were predicted in the business cases for LGR.
This support is fully accounted for in the proposed budget to 2024/25 and the medium-term financial plan.
Since 1 April 2023 we have developed a robust plan which will see us maximise on the opportunities of becoming a unitary as we develop a new and modern organisation that is more effective and efficient and delivers quality services to our residents. This process includes developing an early help culture, taking a more preventative approach to issues before they escalate which we know is better in the long term for our communities.
This process will result in some initial costs as we invest in our services, so this extraordinary financial support gives us the space and time to manage this process more effectively.
As part of today’s agreement we shall be establishing an independent panel to oversee progress on our transformation plans."
Speaking on the news, Cllr Barbara Cannon, Executive member with responsibility for financial planning and assets, said: "Today’s announcement shows confidence in our approach, that our plans and financial management arrangements are on track. It also shows that the government have recognised the true cost of local government reorganisation. It remains our ambition to transform the way we provide services to our residents, so that we can make a real, long lasting and positive difference to their lives.”