SEND Budget Funding

Baroness O'Neill of Bexley Excerpts

Wednesday 3rd December 2025 Lords Chamber

[Baroness Smith of Malvern (Lab)]

In actual fact, I think all children can really thrive in alternative provision. The important thing here is that we ensure that all of our teachers and schools are able to deliver the inclusive teaching and provision that will ensure that children can not only have their needs identified as early as possible but can then receive excellent teaching, which is what will make a difference. Also, I can reassure the right reverend Prelate that we have actually seen a record low in the number of teachers leaving the profession this year.

[Baroness O'Neill of Bexley (Con)]

My Lords, I remind the House of my interest in having recently stood down as the leader of the London Borough of Bexley, but I am still a councillor. The OBR has red-flagged the £14 billion existing deficit that local authorities are in, at a cost that is currently unaccounted for in government plans. Some estimates suggest that, by the time SEND spending returns to council balance sheets in 2028, nine out of 10 upper-tier authorities could be forced to declare bankruptcy. How do the Government aim to clear that deficit and solve the problem?

[Baroness Smith of Malvern (Lab)]

I take the noble Baroness’s point, but perhaps, if it were that serious, more effort could have been made on reform before we got to this Government. Nevertheless, this Government will work with local authorities. By the way, it is not an OBR red flag; it is an OBR assessment of what the costs will be in 2028-29. The OBR has been very clear—including this week in the Treasury committee—that its suggestion about the impact on core schools budget is hypothetical. We will continue to support local authorities, including, for example, alongside an extension to the dedicated schools grant’s statutory override. We will set out further details on our plans to support local authorities with historic and accruing deficits, including conditions for accessing the support we are providing through the upcoming local government finance settlement.