Millions of pounds of debt Wokingham Council was expecting to pay have been wiped out by the Government, freeing up money to be spent elsewhere.
Threatened services like libraries and buses could be spared under the new arrangements, and services for children with special educational needs and disabilities (SEND) should now be on firmer footing.
Wokingham had previously ring‑fenced large parts of its strategic reserve under a so‑called ‘Safety Valve’ agreement to cover its duty to fund extra help for children with SEND and to pay interest on that money. Under the scheme the Government has now substantially paid off the deficit.
Like councils across the country, Wokingham built up debts meeting rising costs to support children with special needs, much of it under previous governments. Keir Starmer’s Government has stepped in to wipe out 90 percent of that debt, freeing up millions for day‑to‑day spending.
The move is expected to bring 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 LibDem administration in Wokingham said it was treating the news with caution, stressing it did not yet know what the change would mean in practice and that it '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.”
Ted O'Neill, Local Democracy Reporter
