Recommendation 26

Iain Murray from CIPFA warned that even if these deficits were written off, local authorities would immediately start to accumulate new deficits due to high levels of demand in SEND.71 MHCLG told us that there was huge amounts of work currently going on in central government on special educational needs funding, specifically on the statutory override, and government plans to publish details as part of the spending review in June and the provisional local government finance settlement in the autumn.72 MHCLG was clear that any plan would have to involve reform of the SEND system, as well as a plan for local authorities to manage their deficits.73 HM Treasury added that the upcoming spending review would aim to set out a sustainable position for local government in regard to special education needs funding for the whole of the spending review period.74 Local government reform