County council leaders have warned that ‘unmanageable’ special educational needs and disabilities (SEND) deficits risk bankrupting half of England’s largest local authorities.
In March 2026 the statutory override that is currently keeping £6bn of SEND deficits off council balance sheets will expire.
A survey by the County Council Network (CCN) found that 18 county and unitary councils will be insolvent overnight if nothing is done to address the issue. A further six would follow in 2027.
Cllr Kate Foale, SEND spokesperson for the CCN, said: ‘The clock is ticking to March 2026 and we are now just twelve months away from what would be a financial catastrophe for local councils if these unmanageable SEND deficits are placed onto local authority’ budget books.’
In January, local government minister Jim McMahon said deficits would not be resolved by ‘accountancy treatment without a plan', adding the Ministry for Housing, Communities and Local Government (MHCLG) was in talks with the Treasury about finding a solution.
