North Somerset Council urges Prime Minister to address funding shortfall
The council warns the funding gap may lead to a increase in council tax
Last updated 11th Jan 2026
North Somerset Council is urging Prime Minister Sir Keir Starmer to take immediate action to address inequalities in national funding policies for councils, which, they say, unfairly increase costs for residents while cutting government financial support.
The council recently received its provisional funding settlement, revealing it could lose £18.6 million. It further estimates that over the next three years, more than £30 million could be stripped from local services due to changes in funding.
A significant concern lies in how the government calculates council tax income within its funding formula. For North Somerset, the government applies a notional Band D figure of £2,061. However, the council’s actual Band D charge, including the adult social care precept, is £1,794. This assumed higher figure results in North Somerset being treated as if it generates more income than it does, directly impacting the funding received and putting pressure on local council tax rates.
The council’s appeal to tackle funding issues
Council leader Councillor Mike Bell has highlighted these concerns in a letter sent to the Prime Minister today. As part of the council’s plea, Bell has requested actions to address the funding disparity, including:
- Removing the assumed national council tax figure from the funding formula or allowing greater flexibility for councils to raise council tax
- Enhancing ringfenced funding for adult social care
- Using accurate, current data in funding calculations
- Providing a recovery grant or guarantee to reflect the needs of North Somerset’s deprived communities
“This settlement doesn’t just cut funding, it bakes in an assumption that councils like ours can raise more from council tax than we actually do,” Cllr Bell said.
“Government is effectively treating North Somerset as if we already charge £2,061 for Band D, when our charge is £1,794. That gap is then used to justify taking money away. The result is simple: less funding from government, and forcing local council tax up.”
Nearly two-thirds of the council’s spending is currently allocated to adult and children’s social care services—statutory responsibilities that the council warns are increasingly difficult to sustain without proper government funding.
Budget challenges ahead
According to Cllr Bell, the council has already identified £16 million in savings for next year. Despite these efforts, it is forecasting a £15 million funding shortfall this year, potentially rising to £42 million in future years.
The council is preparing its budget for 2026, and final proposals are set to be discussed during the Full Council meeting on 24th February. This date was postponed by one week to allow the government more time to respond to the council’s call for flexibility in setting council tax rates and reevaluating funding allocations.