Somerset Council faces financial challenges amid warnings from government
Local leaders struggle to address financial issues before intervention
Somerset Council is under pressure to resolve its financial issues following a warning from the Ministry of Housing, Communities and Local Government (MHCLG).
The MHCLG issued a 'best value notice' to Somerset Council on 14th July, signalling a final warning to manage its finances before government commissioners are sent in.
The council has recently appointed a new chief financial officer to spearhead efforts leading up to its next budget in February 2027.
Despite these measures, executive committee members have expressed concern over the pace of the progress, fearing the threat of bankruptcy remains.
Councillor Mike Rigby, portfolio holder for economic development, drew parallels between the council’s situation and congestion problems on the M5, highlighting the need for significant improvements.
Council Leader Bill Revans was open about the ongoing challenges during a meeting in Taunton, emphasising that recommended actions are already being put in place.
He said, “We want to reassure residents that we remain in control of our budgets and continue to be responsible for making decisions locally in the best interests of local people.”
The council is predicting a £30 million overspend for the current financial year and must deliver substantial savings through its transformation programme.
Chief Executive Duncan Sharkey acknowledged the severity of the situation.
He said, “This is a serious position. Despite receiving financial support, we are still in a fragile financial position.”
The council received exceptional financial support for three consecutive years but has been warned that further support will not be forthcoming.
Portfolio holder for adult services, Sarah Wakefield, highlighted technical issues with the council's computer systems inherited from previous authorities.
She said, “Getting all our computer systems from the various different councils to talk to each other has been an absolutely massive job.”
A formal update on the council’s progress against the best value notice will be presented to its audit committee by late November.