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  • Local Government Newsletter | 📉 CIPFA: Local Gov Finances on the Brink

Local Government Newsletter | 📉 CIPFA: Local Gov Finances on the Brink

Plus: How Agilisys EHCP has helped Stoke boost EHCP timeliness from 29% to 83%🧠

Local Government Updates

Welcome to Local Government, your weekly newsletter offering insights and strategies to help UK council leaders innovate, engage, and deliver better public services.

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TOP STORIES OF THIS WEEK🎯

  • CIPFA Issues Crisis Warning: Local government funding is at breaking point — urgent national intervention is needed to prevent systemic failure.

  • £5B SEND Deficit Threatens Councils: Mounting SEND costs risk bankrupting multiple authorities by next March, with no government plan in sight.

  • Stoke’s EHCP Turnaround: AI deployment helped Stoke-on-Trent lift timely EHCP delivery from 29% to 83% — showing the value of tech done right.

EHCP TOOL- USED BY 40+ COUNCILS

We are going to be honest – we at UKGovTech are fans of Agilisys and their EHCP tool. We are not the only ones though, as over 40+ councils are now using the tool to transform Education Health and Care Plan creation for SEND children across the UK! ​

“AI tools do more than save time — they must transform how we support children with SEND.​”

The Agilisys EHCP solution is now used by over 40 councils across the UK, helping to radically improve the way Education, Health and Care Plans are drafted and delivered. It is not just about speeding up the process - it is about delivering better outcomes for children, families and professionals.

Read more about the Agilisys EHCP solution and hear how other councils are transforming their EHCP processes.​

Book a demo today to see the impact for yourself.​

Press here to book a demo👆

GOVERNMENT FINANCE CRISIS

The Chartered Institute of Public Finance and Accountancy (CIPFA) warns of a looming financial crisis in UK local governments, emphasising the urgent need for immediate governmental intervention. The current funding model fails to meet the demands placed on councils, threatening essential services such as social care and education for vulnerable populations. Immediate, coordinated action is essential to prevent systemic failure.

EDUCATIONAL FUNDING CRISIS

Local authorities in England are on the brink of financial collapse due to a staggering £5 billion deficit in SEND funding. The crisis, fuelled by years of overspending and escalating demands for Send services, could render numerous councils effectively insolvent within months. The government's recent spending review failed to address these mounting debts, leaving councils without clear guidance on financial sustainability. As the statutory override allowing councils to exclude accrued deficits from their balance sheets expires next March, the risk of bankruptcy looms large.

The situation is exacerbated by a substantial rise in children requiring special needs support, with 1.7 million pupils affected, and an increasing number of legal disputes over educational health and care plans. Councils are currently struggling to balance these unprecedented financial pressures, with some having to secure loans to meet immediate needs. Without timely intervention, this financial instability threatens essential community services, employment, and local assets, casting doubt on councils' ability to fulfil their legal and social obligations.

GOVERNMENT SPENDING REVIEW

The Spending Review disappoints London, offering a £2.2bn four-year settlement for Transport for London but lacking crucial investment for new infrastructure projects needed for the capital's growth. Sadiq Khan criticised insufficient police funding against a substantial £260m shortfall in the Met's budget. While £39bn is promised for affordable housing across ten years, it remains unclear how much will benefit London directly, leaving urgent housing needs unmet.

HEALTHCARE STRATEGY

The UK spending review outlines a promising financial boost for health and social care, featuring a 3% annual NHS budget increase and a £10 billion allocation for digital transformation. However, crucial implementation details are lacking, raising concerns about the long-term impact and inclusivity of technological advancements in the sector.

SPECIAL NEEDS REPORTS

Artificial intelligence is being integrated by Stoke-on-Trent City Council to combat delays in issuing EHCPs for children with special needs. Struggling to meet the demand, the council’s traditional methods led to only 29 per cent of the plans being completed within the required 20 weeks by December, far below the national target. AI now supports case workers by swiftly processing information from various reports, allowing them to focus on ensuring the quality and accuracy of each plan, thus reducing lengthy waiting times for families.

In addition to AI, the council has increased educational psychologists and improved application processes to tackle the backlog, resulting in a marked improvement. Provisional data for April indicates a significant rise to 83 per cent of EHCPs issued on time. This transformation demonstrates a commendable commitment to addressing the needs of the community by leveraging technology efficiently, though the council acknowledges more work is needed to reach their ultimate goals.