Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, whether the Fair Funding Review methodology will take account of historic and projected cost pressures arising from SEND demand and associated Dedicated Schools Grant deficits when determining funding allocations to local authorities.

The Fair Funding review will introduce a fairer, evidence-based funding system that reflects local circumstances and directs more support to the most deprived areas, ensuring the best value for money for government and taxpayers. New methodology will ensure funding is distributed to the places that need it most, using our most up-to-date assessment of need and demand across the system. These updates will account for local circumstances, including for different ability to raise income locally from council tax, and the variation in the cost delivering services.

There is no direct link between Dedicated Schools Grants deficits and allocations following the Fair Funding Review. However, Government recognises that local authorities are continuing to face significant pressure from the impact of deficits on their accounts, and will address this outside of the Fair Funding Review

Ambitious plans for reform of special educational needs provision will be set out early in the new year to deliver a sustainable system which supports children and families effectively. Future funding implications will be managed within the overall government DEL envelope, such that we would not expect local authorities to need to fund future special educational needs costs from general funds, once the Statutory Override ends at the end of 2027-28. We will set out further details on our plans to support local authorities with historic and accruing deficits through the upcoming Local Government Finance Settlement.