Many local authorities have seen rises in Special Educational Needs (SEND) demand, and the NAO has previously reported that 101 local authorities overspent their SEND-related budgets in 2022–23.67 Department for Education (DfE) estimates suggest that by the end of 2027–28, overspending on SEND-related budgets could be between £2.9 billion and £3.9 billion.68 Since 2021, MHCLG has allowed local authorities to exclude these deficits from their main revenue budgets, termed the ‘statutory override’. The override is only in place until March 2026. We previously asked government to develop a fair and appropriate solution for when the statutory override 57 C&AG’s Report, para 3.30 58 C&AG’s Report, para 22 59 Q 3 60 Q 57 61 C&AG’s Report, para 3.31 62 LGFS0019 63 Q 12 64 LGFS0001, LGFS0004, LGFS0019 65 Qq 56, 57 66 Q 57 67 C&AG’s Report, para 3.35 68 C&AG’s Report, para 3.35 18 ends and to set out its plans, as a matter of urgency by March 2025.69 However, although our recommendation was accepted, a solution for the override and plans for how local authorities will manage cumulative deficits after March 2026 have not yet been brought forward.70