Oral Answers to Questions

Debate between Jim McMahon and David Davis

Monday 7th April 2025 Commons Chamber

[David Davis (Goole and Pocklington) (Con)]

14. What discussions she has had with the Chancellor of the Exchequer and the Secretary of State for Education on the potential implications for her policies of councils becoming insolvent due to inadequate funding for SEND education.

[The Minister for Local Government and English Devolution (Jim McMahon)]

The Government recognise the impact that spending on special educational needs and disabilities is having on council finances. A £1 billion increase to SEND and alternative provision was announced for 2025-26 in the autumn statement. The Government intend to set out plans for reforming the SEND system in further detail this year. That will include details on how the Government will support local authorities to deal with their historical and accruing dedicated schools grant deficits.

[David Davis]

Next March, when local authorities can no longer exclude the high needs elements from their balance sheets, half of them will go bankrupt as it now stands. For the East Riding, it is estimated that this year’s education budget is £17 million in deficit. That is largely because of increased high needs spending on pupils with special education needs. Can the Minister give me an undertaking that we will not next year find ourselves either crushing the needs of special needs children or those of other needs in society?

[Jim McMahon]

First, we need to repair the system of SEND provision and deal with its impact on local authorities. The system is not sustainable in its current form, and we must reform it from the ground upwards. Secondly, deficits have been accruing and are still accruing, and that is a big issue. We certainly do not intend councils to be the victims of a system over which they have had no control, and we will work with them in our endeavour to prevent that.

[Jim McMahon]

As my hon. Friend says, this issue requires a whole-of-Government approach. When Governments work in silos, it is those who need support the most who fall through the gaps in the end. This Government do work across Departments, including our own and the Department for Education, to ensure that we have a single plan. Ultimately, of course, we have to deal with the financial impact on councils, but it is the young people going through the system who really matter.

[David Davis (Goole and Pocklington) (Con)]

T1. If she will make a statement on her departmental responsibilities.