THE leader of Bournemouth, Christchurch and Poole (BCP) Council said the authority faces “imminent financial threat” in light of a SEND funding crisis.

In a letter to deputy prime minister Angela Rayner, councillor Millie Earl said BCP Council faces dealing with a £171 million hole in its finances thanks to debt built up to pay for its special educational needs and disabilities (SEND) services.

The council is not alone in being faced with these particular financial challenges, with many councils around the country struggling in light of the demand for SEND services increasing rapidly over the years.

BCP Council said the demand outstrips government funding to pay for it and that more than half of councils across the UK warned they would become insolvent when the system to defer payment to pay for SEND services, the statutory override, was due to end next year.

A two-year extension to the statutory override means councils now have until March 31, 2028.

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This will allow some breathing space and allow councils to effectively ignore the overspend on providing SEND services, but they still need to provide the cash to fund the services being provided.

This also does not solve who will pick up the bill when the override ends.

Cllr Earl has warned BCP Council could see cuts to “key services” to help pay for it.

Her letter reads: “By the end of this financial year, in March 2026, we forecast that the accumulated deficit on the Dedicated Schools Grant (DSG) will reach £171m, which means that we are both technically insolvent, and also facing an ongoing bill of £7.5m each year, just to service the debt.

“This cost is currently charged to the general fund revenue account and means that we have had to consider further cuts to vital services including environmental services, play provision and support services in our most deprived communities, because this issue has not been resolved.”

The council has had an ongoing deficit in its allocated budget for SEND services for the past six years.

By March 2026 this will have risen to an estimated £171m.

BCP Council is urging the government to change who is responsible for the borrowing costs on SEND spending above the government grant.

It said this would help the council address its future funding challenges.

Cllr Earl’s letter said: “This decision would prevent us from making further damaging cuts to our vital front-line services, at no cost to the government at this time, and would support the council to balance its revenue budgets.”

Details of how the government intends to reform the SEND system are due to be set out in a Schools White Paper in the autumn.