Councils face a “cliff-edge” of effective bankruptcy notices without accounting immunity and extra SEND funding which is currently “far from sufficient”, a cross-party group of MPs has warned.
The Levelling-Up, House and Communities committee has urged ministers to agree “realistic” steps and additional cash with councils by April to eliminate high needs budget deficits.
These deficits have soared to £1.58 billion, but councils have been allowed to keep them off their books as part of a “statutory override” due to expire in March 2026.
Thirty four councils have also been subject to safety valve agreements, where the government offers bailouts totalling nearly £1 billion in exchange for sweeping reforms.
