Revised budget plans could see council increasing deficit to support children with SEND
Councillors will be asked to agree to plans for an increased deficit to support pupils with SEND, after headteachers refused a move to top slice £5.4m from the county's schools budget.
County council officials had initially drawn-up plans for the council to take on a £50m deficit to subsidise 'high needs' funding, in order to support children with special educational needs.
And as part of the plans schools had been asked to contribute £5.4m – equivalent to 0.5 per cent – from the more general schools budget.
But earlier this month a meeting of the Hertfordshire Schools Forum voted against the move to transfer funds from the 'schools block'.
Headteachers and council officials have now drawn-up alternative plans for £2.7m to be transferred from the 'schools block'.
But that will mean the county council will have to agree to increase the planned deficit from £50m, to £52.1m.
The revised plans will now face further scrutiny as part of the council's budget-setting process – before they can be approved.
But, following the discussions, the council's executive director of children's services Jo Fisher has welcomed the 'collective agreement'.
''With one of the lowest high needs funding settlements in the country and tightening budgets, we sadly once again are in the position where challenging proposals need to be agreed with our schools," she said.
"And I'm pleased that by working together constructively we have been able to reach a collective agreement for additional investment into support for children with SEND in our schools."
Meanwhile headteacher Alan Gray, chair of the Hertfordshire Schools Forum, says they have come to an agreement that will share the financial pressure between schools and the county council.
''The county council is not alone in facing squeezed budgets and increased costs and that is why HSF provided challenge to the initial budget proposals presented to us," said Mr Gray.
"While we did not feel we could accept the proposals as presented, we have worked with the Council over the last week to come to agreement that will see the financial pressure shared by schools and the county council."
According to the 2025/26 draft budget plan around £1.5bn is set to be allocated to the county's schools next year – with £207 'high needs' funding earmarked for children with special needs.
Plans for the £50m deficit were drawn up amid fears that the allocated £207m would not be enough.
According to the plans the £50m deficit – or £52.1m under the revised plan – would be funded by county council borrowing.
Data included in the council's draft budget document suggests that by the end of 2025/26 the proposed £50m deficit would lead to an accumulated schools deficit of around £80m – incurring interest costs of £2.585m during 2025/26.
The document also suggests that that could increase to £384m by March 2029 – which would incur interest costs of around £16m a year.
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