Essex County Council's efforts at at alleviating the worst impact of the recession have been singled out today as amongst the best in the country by the Audit Commission. (The government's watchdog responsible for improving the delivery and effectiveness of public services.)

The report, "When it comes to the crunch ..." published today highlights Essex County Council's Banking on Essex scheme, that makes loans of up to £100,000 available to small and medium sized businesses, as one of the leading examples of how local authorities are assisting their communities. 

The report goes on to warn that councils should prepare for worsening social impact as unemployment rises and that most councils face extra demands for benefits, welfare and debt counselling as well as extra pressures on school places, social care and mental health as a result of the recession.

To address exactly these sorts of issues, Essex County Council will be launching next month a detailed economic recovery action plan that will set out a range of measures to further support Essex during the recession and to position the county for when the economy recovers.

Leader of Essex County Council Lord Hanningfield said:

"Establishing Banking on Essex was one of the best things that Essex County Council has done. Real, practical support to our county's small businesses when they need it most, keeping businesses afloat and people in jobs, and I am pleased that the scheme has been recognised nationally as one of the leading initiatives in the country to combat the impact of the recession.  

"The Audit Commission is also correct to warn of the additional pressures that councils will face as a result of recession. This is precisely why we embarked some time ago on a process to transform our business that will save £200m from processes and bureaucracy. This money will then be invested in front-line services so that in Essex we are not faced with limiting or reducing the level or quality of services we provide to our residents."

Businesses wishing to apply for a loan should visit www.bankingonessex.com

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• A full copy of the report can be found on the Audit Commission's website.