North Somerset Council leader Mike Bell, top, has written to Chanceller Rachel Reeves, bottom right

North Somerset leader writes to Chancellor in plea for fairer funding amid £26m funding gap

Paul JonesOctober 16, 20250 Comment0

SERVICES in North Somerset face a funding gap of almost £26 million, it has been revealed, with the situation likely to get worse – prompting a letter the Chancellor Rachel Reeves.

On Wednesday (October 15), the North Somerset Council (NSC) Cabinet was told the authority’s budget deficit had risen to £25.9m for 2026/27 – an increase of £13.7m since February.

The news comes after NSC saw a £911,000 increase in costs for adult social care in the last three months, as well as a £243,000 increase in children’s social care costs – including providing safe homes and specialist care for young people.

The funding gap means NSC faces a challenge to save around £40m over the next three years in order to balance the books.

In response, leader of NSC, Cllr Mike Bell, has written to the Chancellor urging national reform and fair funding for local authorities to “protect essential local services and the people who rely on them”.

“Exceptional support is no longer exceptional, it’s a lifeline many councils now need just to survive,” Cllr Bell said.

“We run a tight ship in North Somerset, and independent reviewers have confirmed we manage our finances well.

“But when demand for adult and children’s care keeps rising and government funding keeps falling, even well-run councils face impossible choices. Without reform and fair funding, local services people depend on will suffer.”

However, such funding pressures are not unique. Neighbouring Somerset Council has been long battling a declared ‘financial emergency’, while the Local Government Association (LGA) said councils collectively face an £8.4billion funding gap by 2028/29, with one in six social care authorities now relying on Exceptional Financial Support from central government to set a balanced budget.

NSC has also been calling for fairer funding, amid Government proposals in June revealing the authority faces a core funding cut of nearly 20% – £17.4 million.

In his letter addressed to The Right Hon Rachel Reeves MP, Chancellor of the Exchequer, Cllr Bell responded to the government’s budget consultation, setting out five areas where national reform and local flexibility must go hand in hand:

Reform and devolution of local taxation
Stabilise adult social care and invest in prevention
Address structural deficits and unfunded mandates
Enable long-term stability and reform of the funding system
Empower councils as partners in growth, devolution and reform

Cllr Bell wrote of how local government “stands ready to deliver your priorities – economic growth, thriving communities, better life chances for children and a fairer society” – but only if councils are financial sustainable and empowered to raise and manage resources locally.

“We urge the government to act on our recommendations,” he added. “Without national reform, local flexibility and fair funding, we will be forced to make decisions that harm residents and weaken communities.

“We have already delivered millions in savings and continue to transform our services, but no amount of efficiency can fill a £17.4 million hole.

“Our council tax base is historically low, limiting our ability to raise funds, and government capping rules restrict what we can do.

“A Band D household in North Somerset pays £1,793.75 in council tax compared to £2,200.26 in Bristol. That difference represents real limits on what we can provide, despite the same expectations from residents.

“Local government is ready to be part of the solution. What we need is a fair deal that recognises our responsibilities and gives us the freedom to invest in our people, our places and our future.”