For the first time, the government has imposed conditions preventing councils granted EFS help from selling what it calls “community and heritage assets”, reflecting fears that desperate councils could embark on a fire sale of well loved parks, golf courses, regeneration land and artworks.
Jim McMahon, the minister for local government, said: “We are under no illusion of the state of council finances and have been clear from the outset on our commitment to get councils back on their feet and rebuild the foundation of local government.
Now most councils granted EFS are thought to be generally well-run victims of years of the structural underfunding that accompanied austerity, high inflation costs, as well as soaring demand for adult social care, child protection and homelessness services.
A record 30 English local authorities have been granted effective “bailouts” enabling them to borrow money to avoid bankruptcy, as ministers advised them against selling off prized local assets such as historic buildings, parks and allotments.
Six councils who are in special measures after declaring effective bankruptcy in recent years – Birmingham, Croydon, Nottingham, Slough, Thurrock and Woking – have again been granted special financial help.
