A £183m allocation from the government will still leave West Sussex County Council with a £147m deficit on its Dedicated Schools Grant (DSG) by the end of 2026/27.
And having to pay off that deficit using its own funds will reduce the money available for investment, meaning a loss to the treasury of around £9.3m of income.
The figures were shared during a scrutiny meeting at County Hall, Chichester, on Friday (September 18).
The DSG is a ring-fenced government grant used to fund the county’s schools budget, including blocks for early years and high needs. But, as local authorities all over the country have found, there is never enough money to keep up with the costs, especially when it comes to the increasing demands of special educational needs (SEND).
The government knows this and, for years, the deficits have been kept off of the councils’ books by a statutory override – which essentially stops them from going bankrupt. That override is due to end on March 31 2028.
In the meantime, it has pledged to pay off 90 per cent of the SEND deficit via a High Needs Stability Grant – as long as councils submit a suitable SEND reform plan.
West Sussex has done this and hopes to receive its grant soon – though the government has yet to set a date. But years of being under-funded until the deficit reached such terrifying levels left some councillors unimpressed.
Jacquie Russell (Con, East Grinstead South & Ashurst Wood) said: “I think the government has got a cheek calling it a High Needs Stability Grant. It’s actually money that they owe us that we’ve been bankrolling over the last few years.”
Mike Suarez, executive director of finance & support services, told the committee that a second grant was scheduled for 2027/28. Without the grants, the DSG deficit was expected to be £500m by April 2029.
Mr Suarez added: “The county council, along with other partners in the local government sector continues to lobby for 100 per cent payment because of the significant impact it’s having on our treasury.”
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