Council expects to spend £51m more on schools

Lincolnshire County Council said it expects to spend £51m more than budgeted on schools this year.

The authority said it was experiencing "significant financial pressures" on services, with budget papers warning the overspend is due to more young people needing Special Education Needs and Disabilities (SEND) support in schools.

The government announced earlier this year it would pay off most debts after a warning that eight in 10 councils would face bankruptcy from money built up over SEND.

Council leaders will discuss the budget at an executive meeting on 1 September.

The county council said there has been "sustained growth in demand and complexity of need in SEND provision".

According to the Local Democracy Reporting Service, the council has been running a deficit on its schools budget since the end of the last financial year - and the authority said this would continue growing through 2026/27.

Spending for school debt is ring-fenced, meaning it cannot force a council into bankruptcy in the same way that normal spending can.

A council budget report stated: "The council entered a [dedicated schools grant] deficit position at the end of 2025/26, resulting in a negative reserve balance of £25m, which is expected to increase further during 2026/27.

"This position is consistent with national trends, driven by sustained growth in demand and complexity of need in SEND provision."

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