Bournemouth, Christchurch and Poole (BCP) Council has warned that it is facing an “imminent financial threat” due to escalating demand for Special Educational Needs and Disability (SEND) services—leaving the authority technically insolvent, according to its leader.

In a letter to Deputy Prime Minister and Local Government Secretary Angela Rayner, council leader Millie Earl stated that BCP is projecting a £171 million shortfall by March 2026. The rising costs of SEND provision, she argued, are not being matched by adequate central government funding.

The council has been running SEND budget deficits since 2020. Earl revealed that servicing the accumulated debt will soon cost BCP £7.5 million annually—money that could otherwise fund vital local services.

“To manage this growing financial burden, we’ve had to consider cuts to essential areas such as environmental services, play facilities, and community support in deprived areas,” she wrote.

The situation reflects a broader national crisis. More than half of English councils have warned they face effective insolvency if no long-term funding solution is found before the expiration of the statutory override—a temporary measure allowing councils to defer recognising SEND-related deficits on their balance sheets. Although the override was recently extended to March 2028, Earl said this only delays the reckoning.

“Councils still have to find the cash to fund these services, and there is no plan for who pays once the override ends,” she cautioned. Earl has proposed that the government should assume responsibility for the borrowing costs associated with SEND provision.

The government has pledged £760 million over two years to reform the SEND system, with further plans expected in a White Paper this autumn. However, local authorities remain under mounting financial strain in the meantime.

At Parker Walsh, we understand how quickly debt and statutory obligations can place pressure on even the most well-managed public or private organisations. Whether you're a company director or a public body facing financial stress, acting early and understanding your legal responsibilities is key.