(UK) Notts: Council facing $17M SPED deficit; expected to be $42M by end of 2025-26 year

Oct 8, 2025, Nottinghamshire Live: Nottingham City Council still facing £13m [$17.4M] black hole in special needs budget despite improvements 

'It is difficult when most of it is around demand and increased demand'

https://www.nottinghampost.com/news/nottingham-news/nottingham-city-council-still-facing-10558200.amp

Education leaders say it is proving “difficult” to close a multi-million pound black hole in Nottingham City Council ’s special needs budget – but improvements have been made.

The Labour-led authority says its financial reserves for children with special educational needs and disabilities (SEND) are dwindling, with “significant overspending” due to soaring demand.

Its high needs reserves are expected to decrease from just over £19 million in 2024/25 to just £3.1m by 2027/28.

Reserves are anticipated to then fall into a deficit of £4.9m in 2028/29 and further to £13.174m by 2029/30.

This marks a slight improvement from June this year, when the deficit was forecast to be £15.2m by 2029/30.

The problem – which a significant number of local authorities across the country are also facing – was discussed at a Schools Forum meeting on Tuesday (October 7).

Jo Moxon, interim director of education at the council, said: “I hope that is encouraging…the better grip if you like on the finance.

“What is next is to really get underneath those budget lines and find out the real reasons for those that are overspending, and more importantly the mitigations we can work on and put in place.

“It is difficult when most of it is around demand and increased demand, and that is what many local authorities are facing. But there are still things and actions that can be taken.”

The meeting, which was attended by school leaders and council officials, heard the costs were being driven by exclusions, and the costs of managing and supporting pupils in costly alternative provision placements.

Councils have been allowed to keep spending on high needs education off their main bank accounts since 2020, to help stop them falling off a financial cliff edge.

The accounting loophole was due to come to an end in April 2026, but the Labour Government announced on June 20 it would be extended to 2028 while it considers further reforms.

Estimates have suggested the combined deficits of all councils across the country was nearing £6bn [$8B], with some authorities facing deficits in the tens of millions of pounds, according to the County Councils Network (CCN).

Reform-led Nottinghamshire County Council is expecting a £31.1m [$42M] overspend in its high-needs block by the end of the current 2025/26 financial year.

Danny Doherty, strategic finance business partner at the council, added: “It is a challenge for all of us as heads as it were, and it is a challenge for us on the finance side, and if we work effectively together with the service we can actually pre-empt that deficit.