Somerset Council seeks financial support to plug £66m gap in budget

Somerset Council is seeking Exceptional Financial Support from the Government as part of its budget setting for the upcoming period (2025/26).

Leader Bill Revans has written to Angela Rayner MP, Secretary of State for Housing, Communities and Local Government, to request the support.

They're already planning to save a further £47m next year- £34m of which will come through reducing the number of staff and managers they employ by April 2025.

But, they say 'cost pressures in Children’s and Adults Social Care continue to soar nationally' and they're facing a gap of around £66m for 2025/26.

The options they're now considering:

1. The Government to allow Somerset to raise Council Tax above the cap of 5%
2. The Government to approve a further Capitalisation Direction

This is a form of one-off assistance offered last year which allows councils to sell assets or borrow money and use the proceeds to fund the budget gap and the day-to-day running costs.

'We need urgent financial help now'

Council Leader Cllr Bill Revans said: "We have been saying for some time that the funding model for Local Government is broken.

"The new Government has acknowledged this and promised reform and additional funds in key areas like social care by 2028.

"But 2028 is too late- we need urgent financial help now.

"We have done everything we can to reduce our costs with a series of unprecedented and heart-breaking decisions since 2023.

"Without additional funding we have had no choice but to ask the Government for permission to increase Council Tax above the 5% cap.

"This is not a decision taken lightly, but our Council Tax base is below the average nationally, and the feedback from our residents suggest they would rather pay more than see services cut.

"Last year the previous Government rejected our request for a 5% increase – we warned that without reform this would mean deeper cuts and steeper tax increases in future. Sadly, this is now the reality.

"We are determined to take decisions locally, remaining accountable to our residents, rather than calling in expensive commissioners who would take the same actions without local knowledge or accountability.

"We recognise that any increase in Council Tax will have a significant impact on our residents and have pledged to increase funding to our exceptional hardship fund, in place to provide support for residents on the lowest incomes."

The budget will now be discussed at the following Council meetings:

• 17th February - Extraordinary meeting of Scrutiny Corporate & Resources
• 19th February - Extraordinary meeting of the Executive
• 26th February - Revised Full Council meeting date for Budget proposals
• 5th March - Reserve Full Council meeting date

They say agendas and papers will be published in advance with the public encouraged to attend the meetings, either in person or online.

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