Council forecasts deficit despite stronger-than-expected schools budget position this year

Portsmouth’s schools budget is “doing okay” but “it’s not amazing”, with rising SEND costs continuing to put pressure on finances.

Portsmouth City Council’s cabinet lead for education recently reviewed reports looking at the financial position of the city’s schools.

The reports set out the position of the city’s Dedicated Schools Grant (DSG) for the year ending March 2026.

The DSG is government funding given to councils to pay for education services, including mainstream schools, early years provision and support for children with special educational needs and disabilities (SEND).

The DSG carried an £8m surplus forward from 2025/26 into this years budget, around £1m more than expected after spending came in below forecast.

The extra £1m was due to additional funding from the early years census, which helped offset higher spending in the SEND budget.

Despite this, the council forecasts a deficit of about £515,000 during 2026/27 as the cost of supporting children with SEND continues to rise.

The biggest pressure is the high-needs budget, which overspent by £1.8m last year. The report says more children need Education, Health and Care Plans, while more pupils are attending special schools, inclusion centres and colleges that provide extra support.

The council also spent £692,000 more than planned on specialist school places outside Portsmouth because suitable places could not be found in the city. More children also needed one-to-one tuition or specialist support.

Cllr Brent acknowledged the pressure on officers, saying: “This job you must have must be so difficult – I can’t imagine it’s easy in anyway shape or form.

“It’s nice to hear we are in a better position – it’s not amazing but we are doing okay.”

The cabinet meeting also discussed the finances of the city’s maintained schools.

A separate report shows Portsmouth’s 17 council-run schools had a combined £5.4m in reserves at the end of March 2026.

While this was slightly lower than the previous year, most schools remain in a healthy financial position, with reserves available to help cover future costs or planned building work.

Nine schools increased their reserves during the year, while eight saw them fall.

However, two schools ended the year in deficit. Manor Infant School’s deficit grew from £53,835 to £72,041, while St Paul’s Catholic Primary School slipped into the red after recording a small surplus the previous year.