Concern over future of council's £130m SEND deficit

FEARS have been raised about Devon County Council’s ability to start its budget-setting process amid ongoing uncertainty around its huge special needs deficit.

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Many councils across the country, including Devon, were hoping for clarity from the Government about what it will do about roughly £6 billion of special educational needs and disabilities (SEND) deficits nationwide.

The previous government allowed councils to effectively ring fence these deficits out of their annual accounts, but that permission - officially called the statutory override - ends next March unless it is extended or an alternative solution is created. What that means is a council's SEND deficit will be moved back onto its balance sheet.

In Devon's case, at more than £130 million, it is greater than the council's cash reserves.

Addressing the audit committee last month, the council's finance director Angie Stewart said if no government action is taken it would put its finances at risk.