Cliff Edge Our Future
Councils today warn that there is just 12 months to avert a financial catastrophe for local authorities, with £6bn in special educational needs and disabilities (SEND) deficits set to be placed on their balance sheets in March 2026 unless government takes action.
These ‘unmanageable’ deficits have been rapidly growing for years as demand and costs for SEND services has soared. Since 2020 councils have been given accountancy immunity, meaning they do not have to include these giant and growing deficits in their budgets.
But that accountancy trick – called the statutory override – is due to end in March 2026.
The County Councils Network (CCN), which represents England’s largest councils, says if government does not urgently address this issue and if these deficits are placed onto council budgets in 12 months’ time, it could trigger a wave of bankruptcies.
A survey carried out by the CCN found that if the override ends in March next year with the deficit placed onto budget books, 18 county and unitary councils will be in