(UK) Herts: Co Council borrowing close to $1B; SPED costs "remains key pressure"

Aug 7, 2026, Bishop’s Stortford: Spending on special educational needs and disabilities fuels Hertfordshire County Council borrowing

Provision for special educational needs and disabilities (SEND) remains a key pressure on Herts County Council, as its borrowing rose to £703.7 million [$948M] at the end of the last financial year.

This was an increase from the £602 million [$811M] borrowing debt recorded at the end of the 2024/25 financial year.

The figure emerged during an audit committee meeting as councillors were presented with a treasury management service report, which laid out some of the financial burdens facing the local authority.

The report warned: “Nationally, although the amount of funding provided through the high-needs block has increased significantly in recent years, by over 30% since 2020, spend has increased at a higher rate. . . .

Scott Walker, head of corporate finance, told members: “One of our biggest risks continues to be the SEND deficit, which has a cash impact on the council, so as we manage that deficit and also look at the government funding grant which is expected to come in in this financial year will help that cash position but there’s still a lot of uncertainty in the area which impacts on our cash management.

 “Going forward, I think it’s fair to say our biggest risk that we’re managing is interest rate risk and economic volatility in the market, where we’ll continue to monitor decisions on borrowing and where we invest our funds, but currently our policy feels robust and sound going forward.

Cllr John Graham (Con, Potters Bar East) asked whether the £83m [$111M] high-needs deficit was included in the council’s borrowing debt and was told it was.

Mr Walker added: “Because we’ve paid out more in SEND provision, in higher needs block, more than the grant we’ve had from government, that will have a negative impact on our cash flow and therefore that’s part of our borrowing decisions so that would be within those numbers.”

Cllr Graham asked for the precise number of the council’s borrowing, and Mr Wilson referred to figures quoted at the end of the report, stating: “At end of quarter four, there was £703.7 million of external borrowing, including lease and PFI commitments.”

Cllr Graham said: “At what level do we start to get worried, at what, £700 million? It wasn’t so long ago we were running at figures significantly lower than that. We’ve gone up by at least £103 million. I suspect we’ve gone up by more because of the special needs.

“There must be a forecast for next year suggesting that is probably going to come close to £1 billion. So at what point does this committee start to worry at the level of borrowing?”

Cllr John Hale (Lib Dem, Colney Heath and Marshalswick), chair of the committee, said members would receive a risk focus report later this year.

He added: “One of the risks I’ve identified as something we should be looking at is financial pressures. I think that this just demonstrates that would be a risk we definitely need to look at, given, as you say, that we’ve got this increase in borrowing.”