Reeves urged to reassure MPs over public finances amid 6bn-a-year Send costs

"Meg Hillier, the chair of the all-party House of Commons Treasury committee, said the chancellor should make clear her long-term plans for the 6bn-a-year Send bill as uncertainty grows over how it will be accounted for at the end of the decade. Reeves, who is due to appear before the committee next month, said in a letterto MPs that she plans to delay a decision until next year."

"The government said this week that it would cover up to 90% of historical debts related to spending by English councils on Send services. Ministers said they will clear about 5bn of the debt up to 31 March this year, although councils must agree to revise how they offer Send services under plans expected to be outlined in an imminent white paper."

Rachel Reeves faces pressure to reassure MPs about public finances as rising special educational needs and disabilities (SEND) costs threaten the government's financial buffer. Meg Hillier demanded clarity on long-term plans for the 6bn-a-year SEND bill amid accounting uncertainty for the decade's end. Reeves plans to delay a decision until next year. City analysts warned investors would be concerned if some or all of the 6bn were deducted from the 22bn budget surplus. The OBR said the 6bn bill was unaccounted for and posed a fiscal risk. The government will cover up to 90% of historical English council SEND debts and clear about 5bn to 31 March, conditional on councils revising services. Handling of expected overspends between April 2026 and April 2028 remains unclear.

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