Millions of pounds of debt Wokingham borough council was expecting to pay may have been wiped out by the government, allowing the council to spend that money elsewhere.
Threatened services like libraries and buses could be spared under new arrangements which should stop forcing both councils to make so many new cuts.
And at the same time, services for children with special needs should now be on a firmer footing.
Wokingham’s budget had previously set aside so-called ‘Safety Valve’ money to cover the council’s duty to fund extra help for children with special educational needs and disabilities (SEND), and the council to pay interest on that money.
Under the Safety Valve scheme, Wokingham had ring-fenced great swathes of its strategic reserve to fund a deficit that the government has now substantially paid off – so the council can now invest that money back into local services.
Like councils across the country, Wokingham has built up debts to meet increasing costs to supporting special needs children, much of it under previous governments.
Now, Keir Starmer’s government has stepped in to wipe out 90 percent of that debt, freeing up millions for day to day spending.
The news is expected to bring more much needed long-term financial stability to Wokingham and many other authorities.
At the same time, the government announced it would end the Safety Valve – a programme designed to force councils to reduce SEND deficits by cutting spending.
The Lib Dem administration in Wokingham are treating the news with caution, stressing that they didn’t know yet what the difference would actually mean in reality and said that they ‘had been burned by these things before’.
Cllr Imogen Shepherd-DuBey, Wokingham’s finance spokesperson, said: “We welcome the Government’s announcement and any additional support for children and young people with special educational needs and disabilities.
“Like all councils with a historic SEND deficit, we expect to receive a High Needs Stability Grant next year.
“However, our current Safety Valve agreement runs until 2028 and the Government has not yet confirmed how this new funding will work beyond 2025/26.
“That means there is still some uncertainty about what the announcement really means for us in the long term.
“We’re in the process of clarifying with the Department for Education what the implications could be without a government plan for up to 2028.”
