Worcestershire County Council Requests £71 Million Emergency Funding

Worcestershire County Council has formally requested Exceptional Financial Support from the UK government to address a severe budget shortfall and avoid issuing a Section 114 notice, which would restrict spending to statutory services.

The council is seeking approximately £71 million in additional funding for the upcoming financial year. This request follows a previous allocation of around £33 million in Exceptional Financial Support provided for the current year to prevent effective bankruptcy.

To reduce costs, the council has begun job reductions affecting departments such as IT, human resources, finance, highways, and economic development. These measures are part of a £9 million savings plan intended to help close the budget gap.

The authority is also planning to demolish County Hall, which has remained unused since June 2024 due to structural and health concerns. The council intends to sell the land after demolition to generate further revenue.

What the numbers show

• £71 million in Exceptional Financial Support requested for 2026-27
• More than £70 million budget shortfall projected for the next financial year
• £33 million in support received for the current year to avoid a Section 114 notice
• £9 million targeted in departmental savings through job cuts
• Council tax increase under consideration, with plans based on a 5% rise and a possible maximum of 10%

According to council statements, the authority is considering raising council tax by up to 10%, although current financial plans are based on a 5% increase. These potential changes are being evaluated as part of efforts to address the ongoing funding gap.

A Section 114 notice is a formal process that requires a local authority to limit spending to essential statutory services. This mechanism is often described as an effective declaration of bankruptcy for a UK local authority.

The council has indicated that it would have issued a Section 114 notice in the absence of the Exceptional Financial Support received for the current year. This support has allowed the authority to continue operations while seeking further financial solutions.

Worcestershire County Council continues to implement cost-saving measures and explore options for increasing income as it works to stabilize its financial position for the next financial year.

* This article is based on publicly available information at the time of writing.