A workaround allowing councils with responsibility for special educational needs and disabilities (SEND) to balance their books will continue after March to 2028, the Government has confirmed.
MPs on the Public Accounts Committee had warned that hundreds of councils faced a financial cliff-edge because of billion-pound ‘high needs’ SEND deficits that are currently kept off their main budgets by a ‘statutory override’.
The confirmation that the override will continue came with the publication of a consultation on local government funding reform, as first was going to press.
Cllr Pete Marland, Chair of the LGA’s Economy and Resources Board, said: “Clarity on councils being able to keep high-needs deficits off their main balance sheets is helpful. We continue to urge the Government to write off these deficits as part of its comprehensive SEND reform plan.”
He added: “An opaque funding system has weakened councils’ financial sustainability and vital public services, and we will be working through the details of this consultation.
“Different councils will have contrasting views on these proposals. Individual councils will need to know the implications and a transitional mechanism is crucial to avoid putting services at risk.
“Greater financial certainty and a simpler funding system are important. However, council finances remain under pressure, and all councils need adequate resources to meet growing cost and demand pressures.”
Also published was a consultation on ‘Modernising and improving the administration of council tax’, seeking views on creating a “fairer and more efficient” system for taxpayers and local authorities.
Cllr Marland said: “Council tax income is an increasingly important funding stream for the local services millions rely on every day. Councils also know residents can be affected by debt and financial hardship, and have implemented a wide range of measures to ensure that recovery practices are fair and support is available for households who are struggling to pay their bills.
“We look forward to working with government on an approach that enables councils to invest in council tax collection practices that effectively balance the collection of vital revenues with measures that help those struggling to pay.”