Recommendation 29

The statutory override that allows local authorities to keep deficits of the Dedicated Schools Grant (DSG) off their books is an unsustainable measure that hides the true cost burden on local authorities. The recent extension of the override until 2028 is a necessary step to protect local authorities from the harmful consequences that would have ensued if it had ended in March 2026. As long as the override is in place, local authorities’ accounts will diverge further from reality, and it must not be extended further beyond