Published on Monday 02 February 2026
BCP Council has set out proposals for a balanced 2026/27 budget that prioritises the services residents depend on most, with a focus on protecting support for vulnerable children, families and adults.
Despite the financial pressures facing councils nationally, the budget is designed to give residents confidence that essential care, support and day‑to‑day services will continue whilst also investing in the future of Bournemouth, Christchurch and Poole.
If proposals are approved, the council will spend £452m running services for more than 400,000 residents across Bournemouth, Christchurch, and Poole, with the majority of the budget supporting the most vulnerable children and adults.
The proposals protect key services such as social care, waste collections, transport and housing, while also making sure that valued non‑statutory services which directly benefit local communities, like beach lifeguards and public toilets, remain funded and accessible.
This means residents can continue to enjoy safe beaches, clean public facilities and trusted community spaces, all while knowing that the most vulnerable people in Bournemouth, Christchurch and Poole are protected.
Following a decade of austerity, local authorities, including BCP Council, face severe financial pressures mainly due to the growing funding gap for delivering Special Educational Needs and Disabilities (SEND) services.
BCP Council acknowledges that the government inherited the SEND financial challenge and is committed to working with them to find a long-term, sustainable solution for the historic and ongoing Dedicated Schools Grant (DSG) pressures.
BCP Council alone has a historic SEND deficit of £183.6m coupled with a forecast shortfall for 2026/7 of £95.7m, creating a total estimated deficit of £380m by 31 March 2028.
The council is currently protected only by a temporary statutory override, which allows local authorities to ignore DSG deficits until 31 March 2028 within their accounts. But the council must still pay annual interest on this debt which is estimated to amount to £32m between 1 April 2025 and 31 March 2028.
This extra pressure on the budget comes at a time when the council’s financial situation is already challenging as both the cost of, and demand for, services continue to rise.
The council is proactively tackling these challenges – finding £14m savings including increased income and improved efficiencies while still delivering for residents. It has also requested government for help to support with the SEND deficit either by permission to raise extra council tax, or to use the money raised from selling buildings and assets to support the day-to-day running of services.
To protect key services, the council is proposing to raise Council Tax by 4.99%, including a 2% social care precept. In addition, the council has requested government to allow it to increase council tax by a further 2.43% to fund the interest costs on the DSG deficit. Even with this increase, BCP Council’s rates remain among the lowest compared to similar local authorities.
The council is waiting to hear from the government on this request so; to set a balanced budget for the statutory deadline of 11 March, it has had no alternative but to use £4.8m of its reserves to balance its 2026/7 budget. If the support is granted, the council would not have to rely on using its reserves.
Longer term, BCP Council is waiting for the government to reform the SEND system, including the government taking over responsibility for funding SEND services, which is planned in April 2028.
Despite ongoing financial challenges, the council has continued to improve front-line services. Building on the rapid improvement of Children’s Services to an OFSTED rating of ‘good’ in early 2025, the council was recently awarded the highest ranking for housing services by the Regulator of Social Housing, and action on homelessness continues to support the most vulnerable.
The proposed budget includes £22 million investment into frontline services, demand pressures including additional funding for Children’s Services and Adult Social care, reflecting the council’s commitment to protecting the most vulnerable residents.
Leader statement:
Cllr Millie Earl, Leader of BCP Council, said: “We are taking a prudent and pragmatic approach to our budget that focuses on getting the basics right and spending our residents’ money on their priorities.
“From delivering statutory services that support our communities’ most vulnerable, to investing in community amenities like play parks, making sure lifeguards continue to keep our beaches safe, and that public toilets remain open, we’re doing the best we can with our residents’ council tax and the funding government give us.
“We understand the government’s difficulty in inheriting the national SEND funding crisis and we are committed to working alongside them to find a sustainable solution.
“But no council should be forced to use its reserves simply to keep essential services running, yet that is the position we find ourselves in. The scale of the SEND deficits is placing unsustainable pressure on local government finances - and therefore local residents - including here in Bournemouth, Christchurch and Poole.
“We have a legal responsibility to set a balanced budget and to protect the most vulnerable people in our communities, and this budget does exactly that.”
Cllr Mike Cox CBE, Cabinet Member for Finance, said: “Due to the significant financial challenges we face we have had a difficult choice to make; either make unacceptable cuts to key services, stop vital but non-statutory activity such as putting lifeguards on beaches and keeping libraries open, or balance our budget with reserves. We’re pulling all the levers we can to avoid further cuts, including appealing to government for financial support, so while we wait for their response, we must rely on reserves to balance the books.
“This budget underlines the stark reality facing councils across the country. We were the first local authority to raise the SEND funding issue with government but while we wait for a national solution, we have no option but to use our scarce reserves to set a legally balanced budget for 2026/27.
“While our reserves remain just above what is widely regarded as the minimum level, using them in this way is not a sustainable solution to a national funding problem. We are doing everything we can locally to manage risk and protect vital services, but urgent and meaningful action from government is needed to address the SEND funding crisis and secure our and other councils' long-term financial stability.”
BCP Council will consider the budget proposals at Cabinet on 11 February, ahead of recommendations being made to Full Council.