Council insolvent due to SEND debt, leader says

BCP Council is forecasting a £171m SEND budget shortfall

A council is facing an "imminent financial threat" because of rising demand for special educational needs and disability (SEND) services, its leader has warned.

Bournemouth, Christchurch and Poole (BCP) Council leader Millie Earl said the increasing cost was not fully funded by the government.

In a letter to Deputy Prime Minister and Local Government Secretary Angela Rayner, she said the authority would have a £171m shortfall by March 2026 and was "technically insolvent".

The government previously said it had set aside £760m over two years to reform the SEND system in England and plans would be announced in a White Paper this autumn.

Earl said the authority had run SEND budget deficits since 2020.

She said it would soon cost £7.5m a year just to service the accumulated debt.

The Liberal Democrat's letter said: "We have had to consider further cuts to vital services including environmental services, play provision and support services in our most deprived communities, because this issue has not been resolved."

More than half of councils had warned they would become insolvent when the system to defer payment to pay for SEND services, the statutory override, was due to end next year, she said.

The deadline was later extended to 31 March 2028.

Earl told the Deputy Prime Minster: "[Councils] still need to provide the cash to fund the services being provided, and it does not solve the problem of who will pick up the bill when the override ends."

She proposed that the government should pick up the bill for borrowing costs on SEND spending.

The Ministry of Housing, Communities and Local Government has been approached for comment.

Previously the government said it had inherited a system "left on its knees".