Education Funding: Distribution

Caroline Nokes Excerpts

Wednesday 28th January 2026 Commons Chamber

[Pippa Heylings]

I have some key questions for the Minister about exactly that point.

A stark reality keeps county councillors and their finance officers awake at night. Cambridgeshire’s overall dedicated schools grant deficit stood at £62.8 million at the end of 2025. Forecasts show that the high needs block deficit will rise to about £94 million by March 2026, and potentially to £200 million by April 2028. The council is now paying about £3 million a year to service the interest on the debt, which places the county in severe financial risk. I raised this question with Minister McGovern when we had a meeting about the local government financial settlement—

[Madam Deputy Speaker (Caroline Nokes)]

Order. We must not refer to right hon. and hon. Members by name. Although the hon. Member for Birkenhead (Alison McGovern) was the Minister in post, we would still not refer to her by name.

[Pippa Heylings]

Thank you, Madam Deputy Speaker.

Everyone now needs to know what will happen to the debt in 2028 when the Government centralise the funding, as they have announced that they will. If it is not absorbed or absolved by the Government, Cambridgeshire, like many other councils, could be approaching section 114 bankruptcy territory. That is what is keeping its councillors awake at night.