BCP Council debt rises by £80m as SEND crisis pushes local authority to ‘technical insolvency’
BCP Council’s debt has soared by nearly £80 million in a year - now totalling almost £371 million, or £918 per resident
The debt burden of Bournemouth, Christchurch and Poole (BCP) Council has ballooned by nearly £80m in the past year, leaving the authority warning it is “technically insolvent” amid mounting pressure over children’s services.
Figures from the Ministry of Housing, Communities and Local Government show BCP’s debt rose 25% to £370.9m at the end of the last financial year, equivalent to £918 for every resident - an increase of £188 in just 12 months.
Neighbouring Dorset Council has also seen a sharp rise, with borrowing climbing 32% to £292.5m. That translates to £760 per head, though adjusted calculations suggest the true burden could reach £1,791 per resident.
Both councils have relied heavily on short-term loans from central government - often used to plug holes in day-to-day budgets rather than for capital investment.
Although BCP has since trimmed its short-term borrowing to £108m, down 10% since April, the overall debt picture remains stark.
Earlier this year, BCP Council revealed a £171m deficit in its special educational needs and disabilities (SEND) services, which it said had pushed it to the brink of collapse.
Council leader Millie Earl wrote to the deputy prime minister, Angela Rayner, warning the authority was “both technically insolvent and also facing an ongoing bill of £7.5m each year just to service the debt.”
Cllr Earl said: “Our council, like many others, is experiencing a crisis in SEND services. We have a huge deficit from delivering this support for a very long time.
“We need a sustainable solution and the government needs to step in and provide councils with what they need to deliver this very important service to children and their families.”
But Jessica Toole, Labour MP for Bournemouth West, blamed “14 years of austerity” for undermining councils’ ability to meet rising demand. “It is unsurprising to see local authorities across the country dealing with debt, but of course it is worrying to see this rising here in BCP,” she said.
She added: “This government is already taking action to fix the foundations of local government finance - including tackling the SEND crisis that is driving some of this borrowing.”