some funding comes from government agencies. Due to the Olympics they cut back on funding elsewhere or set targets for funding. The ECB "last man standing" is supposed to be a franchise initiative to get adults back into cricket - so the ECB can receive the funding they are use to. Might be more to it but that was what I heard.
The other story from 4-5 years ago was that the ECB wanted to fund less clubs and create a structure below first class. The ECB Premier Divisions were born and all clubs had to get "Clubmark" rating to be involved. Clubmark also meant easier access to funding, which in turn meant less for other clubs. I will stress this is hearsay from somebody involved in the admin side at a low level, but to me it rings true as I've sat in numerous league agm's since where the question "who has got some of this sky money" has been met with a big "no".