Councils will get over £1.3billion of extra emergency cash from the Government over the next year as town halls struggle with the skyrocketing cost of providing services.
Thirty local authorities in England will receive Exceptional Financial Support in 2025/26, the Ministry of Housing, Communities and Local Government said.
This includes seven London boroughs - Newham, Croydon, Haringey, Enfield, Barnet, Havering and Lambeth - which will be handed £418million to ensure services can still be delivered.
The outer London boroughs have all argued the soaring cost of providing temporary accommodation for homeless families and the increasing demand and cost of social care has put “unsustainable” pressure on budgets and depleted reserves.
Croydon, which has collapsed into bankruptcy three times since 2020, will get the largest payout at £136million. Havering was allocated £88million, Barnet: £55.7million, Haringey £37million and Enfield £10million.
Newham will be handed £51.2million. Residents there will also see a 9% council tax rise, almost twice the maximum allowed elsewhere in the country, from April.
Lambeth was allocated £40million to manage financial pressures within its housing revenue account, which covers the expenditure of running the town hall’s own housing stock.
Several councils in the commuter belt will also get emergency money to help them stay afloat. The Government agreed an over £18.4million package for Medway in Kent and £14.7million for Swindon.
Windsor and Maidenhead will get £41million of extra support and residents there will see a 9% council tax increase.
Slough Borough Council, which went bust in 2021 is again warning it faces a financial ruin over its hundreds of millions of pounds of debt, will get over £15.7million of extra support this year.
As part of a major Government shake-up the authority has also proposed merging with another council which include Hillingdon or Hounslow - the west London boroughs it borders.
Others councils who will receive emergency funding including Birmingham which will be given £180million, Bradford (£127.1million), Nottingham (£25million) and Shropshire (£26.9million).
Jim McMahon, Minister of State for Local Government and English Devolution 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."
He added: “We are working with local leaders, encouraging councils to come in confidence where needed to seek help and be assured we will offer a relationship of partnership - not punishment - in our joint mission to improve public services for communities and create economic stability as set out in our Plan for Change.”
