As England’s local elections approach in May 2026, a storm is brewing over the financial health of the nation’s councils, with special educational needs (SEND) costs at the heart of the crisis. According to multiple warnings from Reform UK’s leadership, councils across the country are teetering on the edge of bankruptcy, unable to keep up with the ballooning expenses of supporting children with special needs. The situation is so dire, some leaders argue, that basic services like bin collection and pothole repairs may soon be out of reach for many local authorities.
Richard Tice, Reform UK’s deputy leader and head of its cost-cutting DOGE unit, sounded the alarm at a press conference in Westminster on March 30, 2026. He painted a bleak picture: “This is a crisis is completely out of control.” Tice pointed to a 10 percent annual rise in the number of pupils receiving Education, Health and Care Plans (EHCP) in some areas, with the total cost of the SEND system now hitting £10 billion a year. The financial strain is not hypothetical—Tice warned that in four to five years, almost half of all councils could be functionally bankrupt, with deficits greater than their reserves.
Behind these numbers lies a system that, according to Tice, is riddled with inefficiencies and perverse incentives. He called for the government to scrap the requirement for annual EHCP reports—each costing £4,000—arguing that this would save millions in every area. He contended that psychologists are being diverted from providing therapy to children who need it, spending excessive time on assessments instead. “Psychologists are unable to do therapy because they are spending so much time carrying out assessments, leading to worse outcomes for children who need help,” Tice explained.
Transport costs have also spiraled, with local authorities paying enormous sums to taxi firms for school runs. Tice cited one example of a taxi company with just ten drivers holding a £4.2 million contract with a council to ferry SEND pupils to school. He also claimed that some parents use disability benefits to obtain a car through the Motability scheme, yet the car “sits on the drive” while they “demand a taxi” for their children’s school transport. “This is insane, and we have to call it out,” he said, expressing frustration with what he sees as systemic abuse and inefficiency.
Adding to the controversy, Tice accused some “middle-class parents” of exploiting the EHCP system to avoid paying VAT on private school fees—an issue brought to the fore after Labour imposed VAT on such fees. “If you get an EHCP, you don’t pay the VAT, so they’re employing solicitors in order to file their claims,” he alleged. The result, he suggested, is a system where resources are not always going to those most in need.
Reform UK’s proposed solution? Push more responsibility back to schools, trusting teachers to make support decisions without the need for extensive labeling or bureaucratic hurdles. “The best thing to do actually, is to push almost all of it back to the schools. The schools know best, the teachers know best,” Tice argued. He lamented the “mad situation” where children without any form of label are starting to feel left out, and criticized the “insane” sight of pupils wearing ear defenders in class, claiming that both teachers and headteachers want it to stop.
Despite these criticisms, Reform UK claims some success in its own backyard. Since May 2025, the dozen councils run by Reform have reportedly identified over £300 million in savings by cutting waste and renegotiating contracts. However, Tice warned that the broader picture is grim: “About one in five of all councils, not ours, but of all councils, are in extreme financial support. Within four or five years, almost 50 per cent of councils will be basically bankrupt, where essentially, their deficits are greater than their reserves, the direction of travel is very bad indeed.”
While the SEND crisis dominates the headlines, it is not the only issue fueling voter frustration. Nigel Farage, Reform UK’s leader, has been vocal about the broader malaise affecting local government, particularly in London. Speaking to the Evening Standard, Farage relayed what he’s been hearing from voters: “Nothing seems to work anymore. What should be the beacon of Britain is riddled with crime, potholes and struggling schools.” This, despite London’s education system being considered better than most other regions.
Farage also highlighted the strain on household budgets, pointing out that council tax in London has risen by an average of 22 percent over the last five years. “Across London, council tax has risen by an average of 22 per cent in the last five years and it’s not hard to see why. As a result of total fiscal illiteracy by Labour, the Conservatives and Liberal Democrats, London councils have racked up a staggering £20.5 billion of debt,” he said. Reform UK, however, has faced criticism for promising council tax cuts elsewhere and failing to deliver, raising questions about the party’s ability to implement its own prescriptions.
With the May 2026 local elections looming, the political stakes are high. Reform’s London mayoral candidate, Laila Cunningham, is spearheading the party’s campaign in the capital, aiming to recruit 1,800 candidates. The Conservatives are seeking to claw back control of key boroughs like Westminster, Wandsworth, and Barnet, all of which were won by Labour in 2022. Meanwhile, the Liberal Democrats, led by Sir Ed Davey, hope to become a minority administration—or even win outright—in Merton, which would increase their tally of London councils to four.
The fragmentation of British politics adds to the unpredictability. As Professor Tony Travers of the London School of Economics told the Evening Standard, Labour could lose up to 600 seats in London alone. The rise of Reform UK and the Green Party means many wards could be decided by margins as slim as 20 votes. National issues are also likely to play a role, with the Prime Minister’s recent handling of the Iran war providing a possible boost for the Conservatives, even as local grievances simmer.
All the while, the pressure on councils continues to mount. With SEND costs projected to rise even further—potentially reaching £18 billion by 2029—there are real fears that England’s biggest councils could crumble under the weight of a £5.9 billion SEND crisis by 2027. The debate is no longer just about numbers; it’s about whether local government can continue to deliver the services people rely on, and whether the most vulnerable children will get the support they need.
As the campaign trail heats up and the rhetoric grows sharper, one thing is clear: the choices made in the coming months will shape not just the balance of power in town halls, but the very future of local services across England.