Bournemouth, Christchurch and Poole Council has proposed borrowing £57.5m to tackle a funding gap for special educational needs and disabilities (SEND) provision.
The authority said the borrowing may take the form of a capitalisation direction from the Government, and it may also apply for a capitalisation direction for the associated interest on the borrowing.
The local authority described the plan as a ‘temporary solution’ until the Government establishes a long-term plan for the SEND funding crisis facing local government.
The proposal came as the council put forward a three-year budget, which involves a proposed 4.99% council tax increase next year and £7.8m of annual savings.
The authority warned that increases to the National Living Wage and employer National Insurance contributions had added around £11m to next year’s budget, with extra government funding still leaving the council £1.9m short.
Council leader Millie Earl said: ‘The SEND deficit remains a serious national issue that is adding huge pressure to all council budgets, as well as ours.
‘While I’m pleased that government have recognised this is an issue not of our own making and are working with us to find a temporary solution to next year’s cost, we are clear that the SEND system and the way it is funded needs fundamental revision to become sustainable in the long term.’
