BCP Council is negotiating a £57.5 million loan from the government to cover budget shortfalls, particularly for SEND services.
BCP Council is in talks with the government. They need £57.5 million to cover extra costs. This money will help on top of a £64.5 million grant already provided.
The council may borrow this money through a capitalisation direction. They might also ask for help with the interest on this loan.
This borrowing is a temporary fix. The council is working with the government for a long-term solution for all local authorities.
A recent report showed that many councils will face deficits by March 2026 due to SEND services. This is a growing concern for BCP Council.
Council leader Millie Earl mentioned that the SEND deficit is a serious issue. It puts pressure on all council budgets, including theirs.
She noted that the government recognizes this problem isn’t the council’s fault. They are working together to find a temporary solution for next year.
Millie also stated that the SEND system needs a complete overhaul for long-term sustainability.
BCP Council, along with its MPs, is making sure the government understands the issue. They want a solution that benefits local residents.
Nationally, councils could face an £8 billion deficit by 2026/27. BCP Council was the first to raise this concern with the government.
If SEND services become unmanageable, BCP Council could receive a s114 notice. This is not bankruptcy but means the government would control spending until issues are resolved.
Last month, the government set aside £740 million to create more specialist places in schools for children with SEND.
Additionally, an inquiry will be launched to review SEND provisions across the country to tackle the ongoing crisis.
