Somerset Council has struggled to balance the books in recent years

Somerset handed £30 million in ‘exceptional’ support in bid to balance the books

Paul JonesFebruary 24, 20260 Comment0

THE Government has agreed ‘in principle’ to £30 million of Exceptional Financial Support (EFS) for Somerset as the county struggles to balance the books.

Somerset Council – which was refused permission to increase council tax by more than 4.99% earlier this month – has been handed the funding in a bid for 2026/27 to help “enable them to set balanced budgets”.

In a letter to county MP Ashley Fox (Con, Bridgwater) confirming the decision, Local Government Minister Alison McGovern said she had “significant concerns” over the council’s financial position.

She said: “While the government is minded to provide the requested support for Somerset Council in your constituency, having considered their request and the circumstances of the request, I have significant concerns over aspects of the council’s wider position.”

She said she had noted concerns over “the pace and delivery of the council’s transformation plans and repeated requests to reprofile previously agreed support into future years”, and “significant concerns raised by your external auditors”.

“It is my clear expectation that this council takes robust action to address these specific risks and issues, as part of their wider plans for financial recovery,” she added.

The government would be applying “close scrutiny” to the council’s moves to address the financial issues, including “consideration of if any further support or action is needed to ensure these issues are being properly addressed at local level”.

Ms McGovern added: “This government has been clear that, while we will continue to support councils and recognise that improvements will take time, we will also expect council to make sure they are doing all they can locally to deliver for residents and reach a sustainable position across the settlement period.”

The £30m approved in principle will be added to around £15m allocated in 2025/26, taking the total extra support for the coming financial year to £45.118m.

Previously, the Lib Dem administration at Somerset Council has branded the funding model for local authorities “unfit for purpose” as it has struggled to balance the books.

Cllr Bill Revans, leader of Somerset Council, said: “This confirmation is welcome but it’s important to note that EFS is not a bailout or extra funding.

“In fact, as we’ve previously highlighted, Somerset recently lost around £21m each year as a result of the recent so-called fair funding review which removed support for councils delivering services in rural areas, even though these usually cost substantially more to deliver.

“We continue to receive less income from Government due to the way grants are calculated based on the average council tax bill – and we will receive nothing from the Government’s £1bn recovery grant.

“We have taken a number of decisive actions ourselves to protect frontline services while also avoiding the threat of a s114 notice. However, it is clear the funding system for local councils is broken and we urgently need a better way to pay for demand-led services like social care.

“We welcome further scrutiny of our finances, and I would recommend anyone seeking to understand the historic causes of our financial situation to read the CIPFA report that is very clear on the cause of the financial issues Somerset Council faces being the reckless freezing of council tax for six years by Somerset County Council.”

But MP Sir Ashley said: “I welcome the fact that the Minister has recognised these specific risks and is taking action. Council taxpayers in Somerset deserve competent financial management which they have not been getting from the Liberal Democrats.

Conservative Bridgwater MP Sir Ashley Fox has hit out at Somerset Council

“Families across Bridgwater, Burnham-on-Sea and the wider county are working hard and managing their own budgets carefully. They expect their council to do the same.

“Liberal Democrat-run Somerset Council must now get its house in order, deliver its transformation plans at pace and stop wasting council taxpayers’ hard earned money.”

And leader of the Conservatives on Somerset Council, Councillor Diogo Rodrigues, said it was time for the Lib Dem leaders to “stop the spin”.

“This is a damning assessment,” he said. “The Liberal Democrats have tried to blame everyone else for Somerset’s problems, the previous administration, national funding formulas, inflation, anyone but themselves. Yet they have now been in charge for years. The responsibility sits squarely with them.

“It is no surprise that the Government turned down Somerset’s attempt to impose an 11% council tax rise. When Ministers are highlighting serious concerns about transformation delays and financial control, why would they hand over permission for an above inflation tax hike?

“Hard-working taxpayers across Somerset are tightening their belts.They expect their council to show the same discipline and competence with public money, not splash £20 million on consultants to tell them how to save money for example.

“The Liberal Democrat administration must stop the spin, stop blaming others, start taking responsibility and, at a bare minimum, get the basics right.”

The 2026/27 Somerset Council Budget will be discussed at an Executive meeting tomorrow (February 25), where a plan to increase council tax by 4.99% will be considered, which will bring the average Band D property bill to £1,950.30 year.