Bucks Council facing a £27.3 million shortfall in part of education budget

Buckinghamshire Council is facing a £27.3 million shortfall in the part of its education budget that supports children with special educational needs and disabilities.

This is despite a rise in government funding, with a report to the county’s Schools Forum shows the council’s High Needs Block allocation for 2026–27 will be £143.6m, but projected spending is expected to exceed that figure by £27.3m, reflecting rising demand and higher placement costs.

Although the High Needs allocation has increased by £5.6m compared with the current year, council officers cautioned that the uplift may not represent a real-terms increase. Russell Dyer, interim head of finance for children’s services, said the way funding is presented can be misleading.

“When this information came out what the department does is it mainstreams a lot of grants which makes it sometimes look artificially as though we have had a higher amount,” he said.

The High Needs Block funds support for children and young people with education, health and care plans (EHCPs), specialist placements and alternative provision.

The report identifies several drivers behind the projected overspend, including rising demand, higher placement fees, and additional short-term costs linked to tackling a backlog of EHCP assessments.

The council is investing £3m over two years to reduce delays, a move expected to increase short-term pressure on the budget.

Mr Dyer said the figures were still being reviewed, he said: “We are still doing the work to make sure to look at the numbers, I think we want to treat the figures with a bit of caution. I think it’s between 27 and 30 million.”

Concerns were echoed by school leaders. Gaynor Bull, chair of trustees at Insignis Academy Trust, said the increase in funding needed to be viewed in context.

She said: “The good news I suppose we should immediately recognise, is that we do have an increase in funding of £5.6 million, balanced with a proposed in year deficit of £27.3 million.”

If the gap is not addressed, the cumulative High Needs deficit is forecast to reach £74.7m by March 2027. Councils are currently permitted to carry SEND-related deficits under a temporary government “statutory override”, but the report warns that the position presents significant longer-term risks.

It states that if SEND deficits were to exceed the council’s available reserves in future years, this could ultimately trigger a Section 114 notice, effectively preventing the authority from balancing its budget.

Mr Dyer added that there remained time to revisit the forecasts before a final decision is taken.

“The council normally sets the budget in February so we do have a bit more time to look at the numbers and to revise our forecasts, “he said.

Buckinghamshire’s position mirrors a national trend. The report notes that the cumulative SEND deficit across England is forecast to rise from around £6.6bn to £13.4bn by 2028, amid warnings from local authorities that existing funding arrangements are unsustainable.

The government has said it will continue to underwrite SEND deficits until at least March 2028, with further detail expected as part of wider reforms.