Somerset Council has struggled to balance the books in recent years

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Row over finances as Somerset leadership claims authority is in ‘recovery phase’

Paul JonesMarch 5, 20260 Comment0

SOMERSET’S finances are moving into a “recovery phase”, according to leaders, after a budget for the coming year was passed.

Somerset Council approved the financial plan for 2026/27 at a meeting on Wednesday (March 4), with leader of the authority, Councillor Bill Revans (Lib Dem, North Petherton), saying the county was on the right track.

However, he said Somerset remained in a “financially-fragile situation”.

“Experts agree that this council has grasped the challenges of the financial emergency,” he said.

“We have taken the tough decisions needed while prioritising care for the most vulnerable and front line services, working in partnership with our business community, city, town and parish councils, the health service, the police and other public sector organisations as well as the VCSFE sector – and we will continue to do so.

“We have stood by our assurances that we will tackle these problems ourselves, rather than look to expensive commissioners appointed by central government.

“As a result we remain in charge of our own fate, which means we can commit resources to long-term investment into our area, such as the Agratas investment at the Gravity site and the incredible news of the investment into Leonardo at Yeovil.

“Prosperity pays for all and we are determined to build a flourishing sustainable economy in Somerset.

“While we are still in a financially fragile position, we are now in a recovery phase, with the intention of delivering a balanced budget without exceptional financial support next year. We are on the right track.”

Cllr Bill Revans, leader of Somerset Council

The Full Council meeting was told a funding gap of more than £100 million, projected in March last year, had been cut to £25m in February 2026.

To set the budget, councillors voted through a 4.99% increase in council tax, taking the average Band D bill to £1,950.30 per year.

And in a bid to close the remaining £25m gap for 2026/27, the council will again use Exceptional Financial Support (EFS) from central government, in the form of a Capitalisation Direction, allowing the authority to pay for day-to-day spending through additional borrowing or the selling of assets.

Meanwhile, the council also said it plans to find more savings through its transformation programme, “delivering services in different ways to provide better outcomes for residents at a lower cost”.

A £45m investment under the Inspiring Innovation Transformation Programme will be made by 2031, leaders said, with an expected 3:1 savings-to-investment ratio, projected to save around £135m.

Elsewhere, the budget outlined plans to spend up to £5m over the next three years on improving county roads, pavements and cycleways, with an extra £2m allocated to the Exceptional Hardship Fund to support households with the lowest incomes amid changes to the council tax system.

Budgets for adults and children’s services – the two most expensive services the council provides – will also increase.

The opposition Conservative group released its own budget proposals, which outlined plans to reduce reliance on agency staff, complete unfinished workforce reforms, and reinvest savings into key services such as flood prevention, SEND support, and planning enforcement.

Speaking during the debate, Conservative Group Leader Councillor Diogo Rodrigues (Con, Bridgwater East & Bawdrip), said: “Every year the Liberal Democrats ask the opposition what we would do differently. This year we have answered that question.

“Our amendment sets out a common sense plan to reduce waste, strengthen services and start guiding Somerset back towards a balanced budget.”

Conservative group leader, Cllr Diogo Rodrigues, said Somerset residents had been ‘misled’ over the county’s finances

The Conservative amendment proposed £26m in savings, primarily through reducing reliance on agency staff and completing workforce reforms started during the creation of the unitary council.

It said a 30% reduction in agency staff spending would cut costs from £14.2m to around £9.9m, while a 15% workforce reduction would result in more than £26m in recurring savings over the medium term.

Holding 60 vacant posts for one year would generate £2.4m in in-year savings, which would be “reinvested into services residents regularly raise with councillors”, the Conservatives said.

Reinvestments would include £500,000 extra for gully emptying and road sweeping, and more than £300,000 to strengthen SEND delivery, and more than £250,000 for four additional senior planning enforcement officers to tackle the growing backlog of enforcement cases.

Cllr Rodrigues also criticised the Lib Dems’ management of the county’s money, relying on ‘exceptional’ support after a proposed 11% council tax increase was refused, and said residents felt ‘misled’.

“The Government’s decision to block the 11 per cent council tax rise gave hard-working Somerset families and pensioners some breathing space. On that decision they were absolutely right,” he said.

“Residents were told an 11 per cent increase might be needed and that without it there would be painful choices. The Government blocked the rise and suddenly the books were balanced without it. It’s no wonder people tell me they feel misled.”

In response, the Liberal Democrats said the proposal was “reckless” and potentially unlawful.

Cllr Revans said: “We have taken tough decisions to avoid crisis while protecting the most vulnerable and maintaining frontline services. Experts agree we are on the right track.

“This is not the time for headline-chasing proposals that put recovery at risk. Somerset needs responsible leadership, not reckless amendments.”

They said job cuts and agency spending reductions would put extra pressure on services, when the council is “already struggling to recruit social workers, planners, highways engineers and SEND specialists”, roles the party said were “the front line of the services residents depend on”.