Lincolnshire County Council is expecting to spend £51 million more than budgeted on schools this year amid ‘significant financial pressures’ on services.
Budget papers have warned the huge overspend is due to more young people than ever requiring Special Education Needs and Disabilities (SEND) support in school, writes Local Democracy Reporter Jamie Waller.
While the shortfall doesn’t impact council budgets in the way other spending does, it shows how the demand has grown constantly in the county.
The council says there has been “sustained growth in demand and complexity of need in SEND provision.”
The council has been running a deficit on its schools budget since the end of the last financial year – something nearly every authority has experienced – and it says this will continue growing through 2026/27.
School debt is ring-fenced, meaning it can’t force a council into bankruptcy or issuing a Section 106 notice in the same way that normal spending can.
Leaders will discuss this at the Executive meeting next week (Tuesday, September 1).
The government announced in February that it would pay off the majority of debts which councils had built up over SEND.
The Local Government Association previously warned that eight in 10 councils would face bankruptcy if they had to pay back these debts.
A council budget report says there is “significant financial pressures affecting schools funding, primarily driven by a forecast overspend of £51m within the High Needs block.
“The council entered a [dedicated schools grant] deficit position at the end of 2025/26, resulting in a negative reserve balance of £25m, which is expected to increase further during 2026/27.
“This position is consistent with national trends, driven by sustained growth in demand and complexity of need in SEND provision.”
90 per cent of the debt will be taken on by the government, while “the remaining residual risk will need to be managed through future financial planning.”
There is sunnier news in the council’s general budget, which is expected to come in at £100,000 under the predicted level.
