Bristol City Council has been warned it must take urgent action over the spiralling cost of special educational needs and disabilities (SEND).
In the last financial year it spent £94.6m on SEND - £16m more than was initially budgeted.
Added to its previous overspend, Bristol now has a total deficit of £42.5m.
Although councils are not legally allowed to outspend their budgets, Parliament granted permission for councils to run deficits in their schools budget until March 2026.
Bristol's finance manager Angel Lai told a council meeting: ‘We don't have the reserves to cover the overspend as it is, let alone if the position keeps on deteriorating – it's a huge financial risk to the local authority.'