Dozens of England’s largest councils face ‘financial emergency’ if their multi-billion pound deficits for special needs provision are put on their budget books, according to new analysis.
The County Councils Network (CCN) found that 16 county and rural authorities predicted they would need to issue a Section 114 notice before 2027 because of surging costs in adult social care, children’s services and home to school transport.
According to the CCN, England’s 38 county and largest unitary authorities have amassed ‘unmanageable’ special educational needs and disabilities (SEND) deficits of £2bn this year.
Currently, these deficits are being kept off councils’ budget books due to the ‘statutory override’, an accountancy method due to expire in March 2026.
If it does expire, the number of councils at risk of declaring effective bankruptcy by 2027 would rise to 26.
CCN SEND spokesperson Kate Foale said: ‘Today’s survey shows the reality of what would happen if these deficits are not addressed and the statutory override removed: an immediate financial emergency that would lead to dozens of councils declaring bankruptcy in the next 18 months, and only four out of 38 surveyed surviving the decade.
‘With the clock ticking to March 2026 when these deficits are placed back onto councils’ budget books, the Government must provide immediate clarity on a national solution to eliminating or managing councils’ deficits.’
