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Councils in severe financial distress granted support to protect services
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The UK government has granted financial support to 30 councils facing severe financial difficulties, allowing them to borrow money or sell assets (excluding community and heritage assets) to cover daily expenses. This support, through a process called "capitalisation," aims to ensure the sustainability of local services. The government emphasized its commitment to helping councils improve their financial positions and deliver high-quality services. Additional funding will be provided starting in 2026-27 to enhance certainty for councils.
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