Half of Council Budget Could Be Swallowed Up by £208m School Black Hole
Wirral Council faces a £208m school budget deficit, risking half its budget and potential bankruptcy without government intervention
Wirral, UK, School Budget, Bankruptcy, Education
Wirral: The council is in a tough spot with a potential £208 million black hole in its school budgets. This could eat up half of their entire budget, which is pretty alarming.
Auditors have raised the alarm, saying the gap is growing fast. They even warned that if things don’t change, it could balloon to £367 million by 2030. That’s a lot of money!
Right now, the council is trying to manage a tricky situation. They’ve been given a temporary government override to keep school budget deficits off their main budget, but that’s set to end in 2026. After that, they’ll need to find a way to cover these costs.
Education Secretary Bridget Phillipson has pointed out that schools have been neglected, and there are calls for the government to step in and help clear this debt. The local School Forum is also worried, as the budget gap keeps widening despite more funding.
Last year, the gap was around £4.7 million, but it shot up to nearly £13 million this year. By 2025, it could hit £23.8 million, and by 2026, it’s expected to go over budget by £41 million. Yikes!
If the government doesn’t help out soon, the council might have to declare bankruptcy, which could happen in just a few months. Auditors are urging the council to take urgent action to tackle this issue.
To help, the council is part of a program aimed at improving special educational needs services. They’re working hard to create more spaces in special schools, which should help ease the financial pressure.
They’ve already made some progress, with plans for 170 new places by September 2024. This should reduce their reliance on more expensive independent schools, which have been a big drain on their budget.