Bournemouth, Christchurch and Poole Council has warned it could face serious financial trouble unless the government takes urgent action on Special Educational Needs and Disabilities (SEND) funding.
Council leader Councillor Millie Earl has written to Deputy Prime Minister Angela Rayner highlighting a £171 million debt forecast by March 2026. The debt is linked to SEND service costs which have risen sharply due to increased demand but without matching government funding.
The government recently extended the statutory override until March 2028, allowing councils to temporarily exclude SEND overspends from their financial assessments. However, this does not remove the need for councils to pay the actual costs or resolve who will pay the bill when the override ends.
Councillor Earl says the interest payments alone will cost £7.5 million each year, with the money currently coming out of the General Fund. She warned this has already led to difficult decisions about reducing essential services, including environmental work, play provision, and support in deprived areas.
The council is asking the government to take responsibility for SEND-related borrowing costs above the grant funding. Councillor Earl says this change would help protect local services without needing additional government spending right now.
Further reforms to the SEND system are expected in a Schools White Paper this autumn.