SEND debt forces council to consider extra tax rise

People living in Bournemouth, Christchurch and Poole could face a 7.5% rise in their council tax in April.

BCP council forecasts it will face a £10.5m bill for the interest on borrowing needed to provide support and education to children with extra needs.

The deficit between what the council spends and how much money it receives via the dedicated schools grant (DSG) is estimated to to be £380m by March 2028.

The council has written to the government asking to raise council tax above the 4.99% maximum.

Normally councils have to hold a local referendum to do that, so BCP would need to be considered as a special case.

Leader of BCP council, Millie Earl, said the extra money was needed to "protect key services which local people have told us are important" including paying for lifeguards on the beach and keeping public toilets open.

In 2028, the government has said it will take over financial responsibility for SEND provision.

Ms Earl said it was "prudent" to raise money to cover the debt interest in the short term rather than cutting services which might then "never come back" for local people.

If the council is not granted the 2.43% extra council tax increase by the Ministry of Housing, local government and communities (MHCLG), most of the money will be taken from reserves.

The DSG deficit itself is not added to council budget sheets under what is known as a statutory override.

The Labour government is due to reform the SEND system to create "financial sustainability for councils" but a schools white paper due out in autumn was delayed until early this year.

The council part of tax for a Band D property in 2025/6 was £1,855.41, a 4.99% rise would make that £1,947.56, and a 7.42% rise would cost £1,993.08 - a £46 difference.

Dorset MPs have been lobbying the government to help councils struggling with SEND debt.

Vikki Slade, the Liberal Democrat MP for Mid Dorset and North Poole said it "made sense" to add the interest to the debt to save the need for tax rises, while Tom Hayes said he was working "cross party" to keep BCP council afloat.

Labour's Neil Duncan-Jordan, who represents Poole, said: "I think the government will need to write off that money – because no council has the funds to foot the bill."

A government spokesperson said it had made up to £496.3m available to BCP in 2028-29 "which is up 13.8% compared to 2025-26".

"This finance settlement is our most significant move yet to make English local government more sustainable with fairer funding, targeting the places and services that need it most," they added.