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

Since its creation in April 2023, the council 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, 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 has written to Angela Rayner MP, Secretary of State for Housing, Communities and Local Government, to highlight the challenge and request Exceptional Financial Support.

One option would be for the Government to allow Somerset to raise Council Tax above the cap of 5%. This would enable Somerset Council Tax to be at a comparable level to other Local Authorities. Another would be 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.

Cllr 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.”

While discussions with Government are ongoing, the Council has revised its budget setting timeline with meetings moved to align with expected decisions. The budget will now 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.