Government £5bn SEND package receives cautious welcome

By Local Democracy Reporter Simon Finlay

A multi-billion-pound government lifeline to rescue councils facing bankruptcy because of the soaring cost of special educational needs and disability (SEND) has been welcomed cautiously.

The government said it will aim to wipe off 90% of upper tier authority debt with a £5bn package, details of which will be contained in a forthcoming White Paper.

Opposition parties at Kent County Council (KCC) said many of the issues surrounding SEND provision, such as funding and places, will not be solved by clearing historical deficits.

KCC’s accumulated overspend currently is forecast to be £135m at the end of the 2025-26 financial year, according to council papers to go before full council on Thursday.

Demand for SEND placements has grown in recent years and has placed huge pressure on council finances.

‘Improving SEND’

KCC cabinet member for education, Cllr Beverley Fordham, said the announcement lifts a “major risk” from councils.

She added: “But with funding still tightly constrained due to the government freeze on the high needs fund from next financial year, we must continue to manage spending carefully within the money provided.

“We’ve continued to make improvements to SEND services and support and remain firmly committed to improving SEND services so that every child, young person and their family in Kent receives the right support at the right time.”

Liberal Democrat opposition leader Antony Hook said: “This debt didn’t appear out of nowhere. It is the toxic legacy of years of Conservative mismanagement in Kent, now left in the lap of a Reform UK administration that is showing little change in attitude from the Conservatives.”

The announcement does not alter the risks identified in the draft Reform UK KCC budget to go before members this week, as SEND costs are noted as a longer-term concern. A temporary accountancy rule means the deficit is protected until 2028.

‘Deep concern’

Cllr Hook added: “While the accountants at County Hall will breathe a sigh of relief today, this announcement changes nothing for the thousands of parents in Kent currently fighting for an EHCP or waiting for a suitable school place for their child.

“Our deep concern is that the county still has not got sufficient SEND places and funding in each setting – mainstream, specialist resource provision and specialist schools.”

Conservative group leader Cllr Harry Rayner, a former deputy cabinet member for finance at KCC, said he believes the council’s eventual deficit will run to £150m.

He added: “It gives you some idea of the scale of the problem that all upper tier authorities face.

“But the government announcement is undoubtedly good news and while £5bn is a huge sum of money, there is a feeling within local government circles that the overall bill is actually closer to £15bn and rising.”

Cllr Mark Hood, leader of the Green Party group, said: “It’s a huge relief because there was always a danger that the deficit could end up on our balance sheet and the council would have gone bust.”

‘Vital step’

Jonathan Carr-West, chief executive of the Local Government Information Unit, said: “It’s good news – a vital step because without it the vast majority of large upper tier authorities would be facing bankruptcy.

“So it is good to see the government has recognised this as a massive issue but council finances are still under terrible strain in other ways.”

Cllr Louise Gittins, chairperson of the Local Government Association, which represents councils across England, said the government action removes the immediate threat of insolvency.

She said: “Councils continue to work hard to use their finite resources in the best way possible to ensure the best outcomes for children and to meet their legal duties to support children and young people with SEND.

“It is important the Schools White Paper delivers the much-needed reform of the SEND system, leading to better outcomes for children and families, both now and in the future, and that is financially sustainable for councils.

“Overall budget-setting will be another hugely challenging task for many councils this year and beyond. It is crucial that government works with councils on reform of key services, including SEND and adult social care.

“Long-term reform of the overall local government finance system is also needed to ensure all councils have adequate funding to meet demand pressures, deliver the services communities expect and help deliver on national priorities.”

A government statement said: “Councils will have 90% of their historic SEND-related deficits up to 2025-26 written off, protecting their ability to continue to support children and young people with SEND at their local school, alongside delivering wider services and tackling deprivation.”