Issue - meetings

Cabinet Member: Finance, Property and Transformation

Forward Plan Ref: 2026/052

Key decision

Contact: Jane Billington, Strategic Finance Business Partner

Jane.billington@oxfordshire.gov,uk

Report by Deputy Chief Executive (Section 151 Officer) (CA14)

Explains the arrangements for funding High Needs Dedicated Schools Grant deficits up to the end of 2025/26 as set out by the Government as part of the Final Local Government Finance Settlement for 2026/27.

Provides an update on the estimated share of the 2025/26 deficit that will need to be funded by the relevant council(s) when the statutory over-ride ends on 1 April 2028.

Cabinet is RECOMMENDED to:

a)      Note the update on the treatment of High Needs DSG Deficits up to 31 March 2026 set out in the Final Local Government Finance Settlement for 2026/27.

b)      Note the changes to High Needs Dedicated Schools Grant (DSG) funding and approve the mid and worst case forecast deficits for 2026/27 (paragraph 21 and Table 1).

c)      Note the funding that is planned to be available to meet the residual element that the council will need to fund following the end of the statutory override.

Recommendations approved.

Cabinet received a report which explained the arrangements for funding High Needs Dedicated Schools Grant deficits up to the end of 2025/26 as set out by the Government as part of the Final Local Government Finance Settlement for 2026/27. 

The report provided an update on the estimated share of the 2025/26 deficit that will need to be funded by Oxfordshire County Council, or relevant council(s), subject to Local Government Reform, when the statutory over-ride ends on 1 April 2028.  While the government had not provided information about funding beyond 2025/26 at this time, the report set out scenarios showing the estimated share of forecast deficits for 2026/27 and 2027/28 that may need to be funded locally and how those compared to existing planned funding.

Councillor Dan Levy, Cabinet Member for Finance, Property and Transformation presented the report.

Councillor Levy explained that the government would write off 90% of the high needs block deficit, conditional on the Council submitting and having approved a SEND reform plan. The remaining 10% must be funded locally, and there was uncertainty about future arrangements beyond 2026.

Officers were developing a robust SEND reform plan, with support from the Department for Education. The plan's acceptance was crucial for securing the deficit write-off and ensuring ongoing improvements in SEND provision.

The Council had taken a prudent approach by allocating budget to manage the gap between government support and actual SEND expenditure, and had emphasised the importance of maintaining trust and confidence among parents and carers during this period of change.

Councillor Levy moved and Councillor Gaul seconded the recommendations and they were approved.

RESOLVED to:-

a)      Note the update on the treatment of High Needs DSG Deficits up to 31 March 2026 set out in the Final Local Government Finance Settlement for 2026/27.

b)      Note the changes to High Needs Dedicated Schools Grant (DSG) funding and approve the mid and worst case forecast deficits for 2026/27 (paragraph 21 and Table 1).

c)      Note the funding that is planned to be available to meet the residual element that the council will need to fund following the end of the statutory override.