(UK) BCP: Council faces $50M SPED deficit despite govt bailout
Bournemouth, Christchurch & Poole Council has warned that it still faces a £38m [$50M] special educational needs and disabilities deficit, despite the government agreeing to fund 90% of its historic overspend.
The council says its finances are “deeply fragile” and that it is “dealing with a financial challenge on a scale it has not experienced before”.
The Department for Education has written to a large majority of upper-tier councils confirming plans to write off 90% of their deficits on spending for special educational needs and disabilities up to 2025-26.
For BCP, which had its Send reform plan approved by Whitehall, it means a £161.85m grant. But, like all councils, it will remain responsible for the remaining 10%.
In its medium-term financial plan, published on 9 October, BCP says: “Expenditure will continue to outstrip funding by an estimated further £200m over the next two-year financial years. This would still leave the council with £38m of the residual 10% of the debt to fund.
“Continued lobbying to government is crucial for support for the remaining 10% to ensure long-term sustainability for local government.”
The authority says it already faces additional pressures of more than £32m this year and is forecasting a gap of £38.2m for next year, driven by rising demand for children’s and adults’ social care and increasing costs of delivering services. A £15m real-terms reduction in government funding by 2028-29 adds to the financial pressure.
Mike Cox (Lib Dem), cabinet member for finance, said: “BCP Council is dealing with a financial challenge on a scale it has not experienced before.
“The government’s commitment to fund 90% of the historic Dedicated Schools Grant deficit is welcome and gives us greater certainty as we reform Send services. But this is a statutory service that government has underfunded for years and we will be left with a £38m bill that adds significantly to our wider financial pressures.” . . .
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