Up until now, a government “statutory over-ride” has kept spending deficits relating to SEND off councils’ revenue accounts, but this intervention will end in March 2026.
Survey findings from the Local Government Association (LGA) have revealed that 53% of the responding councils responsible for SEND provision say they will not be able to set a balanced budget in 2026/27.
This figure rises to 63% in 2027/28 and to 65% in 2028/29.
In January, a report from MPs on the House of Commons Public Accounts Committee warned that the SEND system in England is in “dissarray” and has become an effective postcode lottery.
The MPs’ investigation found that many local authorities are facing effective bankruptcy because their spending on SEN has outstripped government high needs funding for years and has led to “substantial deficits”.
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