A MULTI-MILLION pound funding gap BCP Council predicted for next year has been halved, its latest budget figures show.

Cuts, combined with newly-announced government grants have reduced the forecast shortfall for the 2020/21 financial year to £7.7 million.

But the report warns that pressures are continuing to grow in the special needs education budget with its funding gap expected to rise to £7.8 million.

The council’s June budget update showed it would need to make up a £15 million shortfall ahead of putting together its financial plan for the following year.

Since then “service-based savings and efficiencies” alongside a share of the government new social care funding and a postponement of changes to the revenue support grant have cut the amount in half, according to its October report.

Speaking at Monday’s scrutiny board meeting, cabinet member for finance councillor David Brown welcomed the news but said more certainty was needed nationally from the government.

“There’s been a lot of work going on around organisational structures and details on that will be coming forward in November,” he said.

“We can do all the work we want to do but the message is that turbulence in national government is causing immense problems.”

One of the biggest pressures facing the council – and many other local authorities across the country – is increasing demand on funding for high needs education.

The latest budget update report says this is growing by about £4 million a year.

Last year the council used the entirety of a £2.4 million reserve on top of taking a further £2.4 million from mainstream schools to plug the gap this year.

It has predicted that it will receive £3 million through a newly-announced government fund but that it will still need to find an extra £7.8 million when it produces its budget at the beginning of next year.

Councillor May Haines called on the council to continue to work with MPs to put pressure on the government to provide more support to councils in this area.