Somerset Council has warned this week that its share of Council Tax could rise by 7.5% – this includes 2.5% above the national cap of 5% – following an announcement from Government.
Somerset Council had been seeking Exceptional Financial Support from Government as part of its budget setting for 2025/26.
Since its creation in April 2023, the council says it has been taking emergency action to reduce costs and plans to save a further £47m next year, including £34m by reducing the number of staff and managers employed by April 2025.
However, the authority says its cost pressures in Children’s and Adults Social Care continue to soar nationally and Somerset Council is facing a gap of around £66m for 2025/26.
Leader Bill Revans, pictured, wrote to Angela Rayner MP, Secretary of State for Housing, Communities and Local Government (MHCLG), to highlight the challenge and request Exceptional Financial Support.
MHCLG has now confirmed Somerset Council will be allowed to raise Council Tax by up to 7.5%, an amount 2.5% above the national cap of 5%. The Council will soon meet to decide whether to agree to the increase.
As the increase will not raise enough money to fill the gap, Somerset Council says it will again be reliant on a 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.
Cllr Revans told Burnham-On-Sea.com: “Today’s announcement gives us clarity and we will need to consider the implications before we finalise our budget proposals for debate and decision at Full Council later this month.”
Somerset Council’s budget will be discussed at the following meetings:
- Extraordinary meeting of Scrutiny Corporate & Resources – 17 February
- Extraordinary meeting of the Executive – 19 February
- Revised Full Council meeting date for Budget proposals – 26 February
- Reserve Full Council meeting date – 5 March
Agendas and papers will be published in advance with the public encouraged to attend the meetings, either in person or online.
