HomeNewsSomerset Council '£3.9m worse off' after Government's new funding announcement

Somerset Council ‘£3.9m worse off’ after Government’s new funding announcement

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The deputy leader of Somerset Council says a funding announcement from the government has put them in an “even more difficult situation”.

Councils have been given 6.5% of extra funding by the government, but for Somerset Council the increase is only 6.1%, below what had been forecast.

Deputy leader of Somerset Council, Cllr Liz Leyshon, says: “We are actually in a worst position by £3.9 million than we were yesterday. It’s bitterly disappointing.”

The Levelling Up Secretary Michael Gove announced an extra £4billion for councils, with a total of £64 billion to be shared across England in 2024-25.

He said: “These proposals will provide councils with the support they need. It ensures stability, delivers additional resources for social care, and maintains balance on council tax.”

Somerset’s increase is below the national average due to some funding streams being reduced by the government.

Somerset Council declared a financial emergency in November and is facing a huge budget shortfall, with a projected gap of £100m for 2024/25, due in large part to an expected increase of £70m in the cost of adult social care.

Cllr Leyshon said: “We are looking at increase in costs for adult social services for adults and children’s placements – tough decisions need to be made.”

“Just because inflation is dropping, doesn’t mean prices aren’t still increasing – they are going up in a slightly lower rate.”

“This isn’t about one council and political parties point scoring – councils across the UK including Conservative-led councils are all suffering like here in Somerset.”

Somerset Council has said the gap in its budget for 2024/25 is continuing to cause “enormous concern”.

Bill Reavens, leader of Somerset Council, adds: “Sadly the government has chosen not to act. With huge regret, like councils all over the country, Somerset Council will have no choice but to make severe reductions to services and to raise council tax.”

“This will undoubtedly be a blow for our residents who rely on our services and are already struggling during a cost of living crisis.”

“That’s why we have confirmed we will continue to protect those worst off with our council tax reduction scheme.”

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