The Government has approved the council’s request for Exceptional Financial Support (EFS) for 2025/26 to support the funding of transformation, restructuring and equal pay

Earlier this week, the council announced it will put forward a balanced budget for 2025/26 without the need for EFS to balance the budget for day-to-day spending

The council applied to extend the previously agreed exceptional financial support (EFS) into 2025/26 because it is required to fund the one-off cost of the transformation programme, restructuring costs, and for equal pay. The Government has confirmed it is minded to approve up to £89.9 million of EFS for 2025/26, inclusive of some support previously agreed for 2024/25. 

Councillor Fielker, Leader of Southampton City Council said:

"We have made major progress fixing our finances over the past year and are now able to set a balanced budget for day-to-day spending without the need for government support.    

"By allowing us to carry forward unused extraordinary financial support from this financial year, Government is supporting us to keep up the pace on our transformation programme to improve services and make them more efficient, and to deal with historic one-off costs such as our outstanding equal pay claim". 

Councillor Simon Letts, Deputy Leader and Cabinet Member for Finance and Corporate Services said:

"As part of the Exceptional Financial Support funding, the council will commit to using this in part to finance service design and restructure.  

"This is not new money, it just gives us the opportunity to use the ESF we were awarded last year over two financial years. 

"We have got to a strong place in our finances by balancing our budget, and this Exceptional Financial Support will help us further to deal with one-off costs to rebuild and transform the council".