Ministers are considering a U-turn on plans to force councils to fill a huge black hole in school budgets next year, as some local authorities say they risk bankruptcy.
Soaring demand for support for pupils with special educational needs and disabilities has left councils with a £1.9 billion deficit on everyday school funding, according to Local Government Association (LGA) estimates.
The government issued a “statutory override” of standard accounting rules in 2020, letting councils leave dedicated schools grant (DSG) deficits unaddressed. It acknowledged they may otherwise have to raid reserves or cut wider services.
Earlier this year the Department for Education said that the reprieve would end next April.
