Somerset Council Leader Bill Revans joined local government leaders from across the country on Tuesday 11th March at Parliament to put the case for a better deal for councils nationwide.
He represented Somerset at the Housing, Communities and Local Government Committee at Westminster that is considering whether the model is fit for purpose as the Government seeks to reform local government funding.
Cllr Revans told the committee that funding from central government had almost halved in recent years – down by 40 per cent – and that it was not realistic to expect Council Tax income to pay for essential services such as social care for adults and children.
He told MPs: “We’ve almost slow walked into a situation where Council Tax is funding social care – Council Tax based on 1991 property values.”
“We are funding social care from a property tax of 1991. Some 66% of our budget goes to fund social care. What we are saying is Council Tax is the wrong way to do it. That’s my message.”
With other council leaders he pressed the case for recognising the increased costs faced by rural areas such as Somerset where basic services, such as transport and waste collection, were more expensive because of the geography.
Somerset applied for – and was successful – in gaining Exceptional Financial Support (EFS) measures offered by the Government, which includes increasing Council Tax by 7.49% – above the referendum limit of 4.99% – and a capitalisation direction of £43m. Capitalisation direction is a form of one-off assistance which allows the Council to finance everyday revenue costs by selling assets or borrow money.
Cllr Revans adds: “31 councils applying for EFS no longer makes it exceptional. It’s welcome because we can manage our own affairs but incredibly difficult because our residents are having to pay more while seeing less services.”
He added that while Somerset’s reorganisation to a single, unitary council had produced significant savings, these were not enough to keep pace with demands: “The cost pressures of social care are rising at a rate faster than our ability to make savings. It’s like running up a down escalator. We are making these savings but cannot do it fast enough to meet the demands.”
The Committee heard from council leaders in Derbyshire, London, and the Chair of Local Government Association Economy and Resources Board. It provides an avenue for MPs to hear evidence before a report is prepared.
