Reform UK is calling for the Government to step up and increase Leicestershire special needs funding amid "spiralling" council costs.  

Budget deficits for the Leicestershire County Council service have reached "eye-watering levels", council boss Dan Harrison said in a letter to UK chancellor Rachel Reeves. 

The difficulty is only getting worse as "uncertainty" about potential changes to special need support "is driving demand to unprecedented levels", the leader added.  

The county now has more than 8,000 education, health and care plans, around a 25 per cent increase on 12 months ago, with the situation being described as a "mission impossible". 

Clarity on the new system and additional money for the authority are "urgently" needed, Cllr Harrison told the chancellor.  

The letter to Ms Reeves comes as the council is facing increasing financial pressure across its budget as a whole. 

A report published last week revealed that the authority is expecting to "face significant additional costs" for the current 2025/26 financial year and in future years too.

An additional £8.12 million already needs to be found for this year compared to when the budget was agreed in February.

February's budget identified a £91 million gap by the end of 2027/28 despite around £290 million having already been saved since 2010. 

Finance officers at the authority have now warned that savings options will "inevitably" need to include "stopping or reducing" services if Leicestershire County Council is to balance its books – something it is legally bound to do.

Much of the additional financial strain relates to the children's and schools' budgets, with more children needing special needs and social care placements, and demand for Education, Health and Care Plans (EHCPs) rising, the report added. 

The letter reads: "Uncertainty about national reform of special educational needs and disability (SEND) support is driving demand to unprecedented levels. We welcome Government's recognition of the problem but there is an urgent need for clarity on the new system and additional funding to meet the growing demand for education support. 

"In Leicestershire, we now have over 8,000 education, health and care plans. This is 1,600 more – 25 per cent – than just 12 months ago and a 54 per cent rise compared to 2020. Understandable concern from parents about future plans is driving this surge. Whilst we wait for the White Paper, demand continues to outstrip the Government grant and deficits reach new eye-watering levels. 

"In Leicestershire, we expect this to total £118m by 2028/29 – equivalent to 20 per cent of the total budget for the council. Nationally, this isn't small fry either, with the County Councils Network expecting deficits to reach £6bn by next March.

"Cash strapped councils are doing their best to stem rising costs. Indeed, over the last three years, Leicestershire has avoided costs by £16.6 million. 

"Despite this, funding is not keeping pace with demand, making it a mission impossible and simply piling on increased financial pressure. At the heart of this is parents, carers and children who quite rightly expect councils to provide specialist support. The right support changes lives and we owe it to them to get the system right, now." 

Cllr Harrison added his Reform UK administration is "committed to getting maximum value" taxpayers, but it needs the "Government to step up and address the spiralling SEND costs and help councils cover costs in the interim". 

The administration's approach to its finances was strongly criticised by opposition councillors at a scrutiny meeting this week. One Conservative member accused them of engaging in "bonkers economics" and said he did not think they have a "credible" plan for the county's money. 

Phil King added: "You and your party are adamant that you can save a substantial amount of money on top of £290 million in efficiencies [saved over since 2010], on a yet uncosted, unworkable programme, in three month's time and, at the same time, deliver tax cuts […] What you're talking about doesn't add up at all. It's unfunded tax cuts. It's bonkers economics." 

However, Reform maintains it intends to deliver tax cuts without impacting on frontline services in next year's budget. 

Council Harrison said: "We've re-directed £2m into tackling flooding and are releasing nearly £1m in children and families services by holding vacancies. Sensible, permanent changes to street light brightness are on track to save over half-a-million-pounds a year and the new homecare procurement process has the potential to save around £1m per year. 

"Efficiency is our focus and we're working hard to pinpoint more opportunities to drive down costs."