Cllr Mike Bell said council funding was not fair on residents

£10 million funding gap next year for North Somerset services

Paul JonesDecember 3, 20250 Comment0

FUNDING reductions and rising demand for adult and children’s social care are being blamed for a £10 million hole in North Somerset Council’s (NSC) finances.

The authority has issued its starkest warning yet about the scale of the financial crisis facing authorities like them, with a funding gap of more than £10m for next year and £33m over the next four years.

NSC said the gap could be put down to “years of government funding reductions combined with rapidly rising demand for services – particularly in adult and children’s social care”, leaving councillors with “stark choices”.

In recent weeks, the government unveiled a plan to reform local authority funding, which it says have “penalised deprived areas for decades”.

Secretary of State for Housing, Communities and Local Government, Steve Reed (Lab, Streatham & Croydon North), said: “We are reforming the funding system that led to regional divides, postcode lotteries, and substandard public services for too many people.

“Our changes will make sure cash going to councils is shared out in a fairer way that follows needs.

“We want every family to benefit from our Plan for Change, and fairer funding means people will soon be able to see and feel the difference in their own local area.”

But NSC said the review had posed more questions.

“The situation has been made more precarious by uncertainty created through government funding reforms,” a spokesperson said.

“Early analysis of the so-called Fair Funding Review suggests that North Somerset may be even worse off than previously thought leaving a widening gap that no amount of efficiencies can close.

“The council is continuing to model the data shared by Government but is unlikely to be told the final funding calculations until later this month.”

NSC leader, Cllr Mike Bell, added: “We are in an extremely serious position. After more than a decade of austerity, councils like ours are being pushed to the brink.

“We have already delivered millions of pounds in savings, but government continues to squeeze funding while shifting more responsibilities onto local councils.

“Despite this, we are still delivering major projects and improving services for our communities. But government has left us with limited levers.

“If we are forced to seek exceptional financial support, residents should be under no illusion about what that means. It comes with conditions and it means council tax rises that fall directly on local people.

“This is not a choice we take lightly. It is a consequence of government policy.”

The council will publish its draft budget proposals for consultation later this month, with a number of options under consideration, including:

Service redesign and transformation to deliver efficiencies.
Income generation and revised fees and charges.
Exploring exceptional financial support from government.
Further savings across all directorates, some of which may impact service levels.

Residents will be invited to have their say on the proposals before the budget is finalised in February.

Cllr Bell went on: “We cannot continue to face a financial cliff-edge built into the system every single year. It is not fair on our communities and it’s not fair on our staff who want to do their best for our residents.

“Government has created this crisis and only government can fix it. Councils need fair funding and long-term stability, not another round of cuts packaged as reform.”

But Minister for Local Government, Alison McGovern (Lab, Birkenhead), said the new plan would address inequalities in the system.

“It’s simply wrong that where you live determines the quality of services you get and ultimately determines your life – from birth to old age,” she said.

“These reforms end that injustice. By using up-to-date data and targeting funding to areas with greatest need, we’re reversing years of unfairness and unlocking opportunity in every part of the country.”

The NSC Cabinet will meet on Wednesday, December 10, from 2.30pm to discuss the Medium-Term Financial Plan and Revenue Budget.