More than half of unitary and upper tier councils could be unable to balance their books when the statutory override for special needs spending expires, a survey has found.
The temporary accounting measure means councils can keep high needs deficits, which are projected to rise to a total of £5bn next year, off their main revenue accounts until March 2026.
In a Local Government Association (LGA) survey of councils responsible for special educational needs and disabilities (SEND) provision, 53% of respondents said they would be unable to set a balanced budget in 2026-27 if the override ends as planned.
The figure rose to 63% of respondents in 2027-28 and 65% in 2028-29.
The chair of the LGA’s children and young people board, Arooj Shah, said: ‘The ending of the statutory override threatens councils’ financial viability.
‘Only by taking bold and brave action in the Spending Review and writing off councils’ high needs deficits can councils have the financial stability they need to ensure children with SEND get the support they need.’
The Department for Education said it would set out how it planned to support councils to deal with their historic and accruing deficits this year.
