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(UK) Essex: "High needs block" facing $301M deficit by 2028/29

Jan 15, 2025, Yellow Advertiser: County council could face massive costs over special education needs funding 

SE England


Essex County Council says it is pressing the Government to resolve special education needs funding as a “matter of urgency” because it could face significantly increased costs.


The 2025/26 High Needs Block deficit is forecast to be £30.3 million [$3.8M], but this could rise to £243 million [$301M] by 2028/29.


There is currently a statutory override in place for the dedicated schools grant – which includes the High Needs Block- which separates this deficit from the local authority’s wider accounts


However, this is due to finish on March 31, 2026. The council has said that if the statutory override is not extended by the government, this will place immediate pressure on the authority’s general fund, as the deficit will need to be offset against reserve balances under the current financial strategy for the medium term.


Councillor Chris Whitbread said: “We recognise that this is a challenge, and that’s why it’s in the budget papers. . . .


 “We have to make sure that the government understands the pressures that we are living under, and they are really significant, and it’s a growing problem.”


“If the statutory override is not extended by the government past March 2026”, he said, “we will meet the challenge.”


He added: “I am confident that the government will listen. This is a major national issue.

“It’s not just here in Essex; it’s a nationwide issue, and government needs to listen to professionals who are saying this needs to be addressed.


“I don’t believe any government would want to let down the most vulnerable.”


The council is proposing a 3.75 per cent council tax increase for 2025/26. This would be a 1.75 per cent general increase and two per cent increase in the adult social care precept.


For an average Band D property, it would mean an increase in the county council element of Council Tax of £1.09 a week.


Essex County Council’s cabinet will consider whether to recommend the Everyone’s Essex Annual Plan and Budget 2025/26 on January 21.


The budget and plan will then be discussed for approval at a meeting of the Full Council on February 13.


Cllr Whitbread said: “I want to be very clear that we will never increase council tax more than we need to, and Essex continues to have the lowest council tax for a county of our size.


“However, we must also be realistic that we are working within very challenging circumstances which we need to respond to. . . .



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