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UK council could go bust due to £60m hole in special needs spending

Parents fear government accountancy rules are severely impacting the chances of getting a care programme for Send children

A council has warned that it could in effect become insolvent this year because of the huge financial deficits it has racked up on special education needs, in the latest development in the local government funding crisis.

Most councils in England have overspent their budgets on special education needs and disabilities (Send) since 2015, when the government extended the age range of young people who qualify for Send support without providing councils with the necessary funding. These deficits have fed into councils’ overall education budgets – known as the dedicated schools grant (DSG).

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