COST-cutting and cash-raising efforts in North Somerset have reduced the district’s funding gap for 2025-26, it has been revealed.

Leader of North Somerset Council (NSC), Cllr Mike Bell, has given an update on the state of the authority’s finances after it revealed a £2.5 million funding gap last year.

Now, he said the gap stands at £500,000 for 2025-26 after the authority took steps to cut spending and used £15m of reserves.

In December, the council said it faced a £2.5m budget gap for 2025-26 and a £7.3 million forecast gap over three years.

The month before, it laid out plans to cut certain library services, as well as street lighting and street cleaning schemes in a bid to save cash.

Since then, the government has published its draft local government finance settlement for 2025-26, setting out how funding will be distributed to local councils.

NSC said while it included welcome measures, including targeted funding for Special Educational Needs and Disabilities services and social care, it didn’t deliver “the fairer deal North Somerset Council needs”.

The council also said it was disappointed not to receive any recovery grant money – which is aimed at addressing funding deficits for councils with low tax bases.

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Cllr Bell said: “Significant work has been undertaken to reduce the budget gap, including using £15m of one-off reserves, and I’d like to thank everyone who has supported us on this challenging journey.

“We are disappointed that the draft government settlement has not closed the financial gap for 2025/26. Also, due to continuing increasing demand and rising costs, the council’s longer-term landscape has worsened. The gap over the council’s three years Medium Term Financial Plan now stands at £8million – a £700K increase since last reported in December.

“We are continuing to work hard to balance the budget and reduce the deficit. This is why we will need to press on with our programme of efficiencies and savings, introduce service reductions and look to generate more income.”

NSC is now looking to the government’s spending review, he said, as well as a promised consultation on reform of local government funding and the move to three-year settlements to offer long-term, sustainable funding.

Cllr Bell added: “These are actions that cannot come soon enough and are vital in delivering fairer funding and a fair deal that North Somerset Council needs and deserves.

“We lose out on £50m every year compared to our neighbours due to unfair funding formula. This needs to change.”

Funding pressures at NSC are increased by a range of circumstances.

It has the second lowest council tax rate in the South West, with residents are paying less council tax than those in Bath, Bristol, South Gloucestershire and Somerset. This means the authority receives £9.1 million less per year in council tax than neighbours.

Core funding from the government comes in at £2,127 per household – £414 a year less than the average in England, or £41 million per year.

In total, NSC says that means it loses out on £50 million per year compared to other areas.

In response, last year th authority launched the Fair Deal petition, calling on the government to address inequalities in the funding system.

The petition – which can be signed at www.n-somerset.gov.uk/fairdeal – will be handed to central government.