North Somerset Council is facing a £5m funding gap for 2025/26. Pictures: Google/Pixabay

Soaring care costs lead to £5 million funding hole in North Somerset budget

Paul JonesSeptember 12, 20250 Comment0

SOARING costs for adult and children’s social care has led to a funding gap of almost £5 million in North Somerset for the current financial year.

On Wednesday (September 10), North Somerset Council’s Cabinet was given an update on the financial status of the authority, which revealed a budget gap on £4.495m.

Having planned to spend £245.357m in 2025/26 (net revenue budget), the current forecast stands at £249.852m.

Councillors also heard findings from an external review of the finances by the Chartered Institute of Public Finance and Accountancy (CIPFA), which assessed the “robustness and sustainability of the council’s financial position in the medium to long term”.

The report recommended the council continue to build on its strengths including strong in-year budgetary discipline and treasury performance.

And it concluded the council’s future sustainability will depend on delivering complex transformation at scale, rebuilding its reserves along with embedding integrated planning across services and finances.

NSC, like other councils – including neighbouring Somerset Council – is facing spiralling costs for providing care to adults and children.

The council has a legal obligation to support more than 2,500 adults across North Somerset – all of whom have different assessed needs and tailored packages of care.

Some are looked after at home while others have supported housing or care provided in a residential or nursing setting.

The council is also a ‘corporate parent’ to approximately 280 children in care.

Increasing costs and demand for residential accommodation, supporting children with disabilities as well as home to school transport places, have all led to budget pressures, the meeting was told.

However, the council has a statutory duty to balance its budget and the Cabinet was told of measures being implemented to close the deficit.

A transformation programme aims to cut red tape, transfer services online and more to deliver services effectively and efficiently, aiming to improve resident satisfaction and provide value for money, the council said.

Cllr Mike Bell, leader, said: “We are proud to be a council who cares and will always focus our resources to look after children, young people and adults most in need.

“Adult and children services accounts for close to two pounds in every three we spend as a council. I’d personally like to thank all our staff, carers, communities and volunteers who help us in supporting so many.

“However, the scale of demand for our care related services continues to increase putting real pressure on our budgets. We’re also seeing increasing financial pressure on other services due to ever rising demand and costs.

“We continue to take decisive and collective action, including a council-wide transformation programme, to ensure we can continue to provide essential statutory services that so many of our residents rely on.”

A Government review, published in June, revealed NSC would see a reduction in money from central government of £17.4m, adding to future funding pressures, which could come as soon as 2026/27.

“The impact of these grant reductions would be devastating,” Cllr Bell added. “Fewer resources means fewer services, deeper cuts, and a weaker safety net for the most vulnerable in our community.

“We need change that works for all councils, not a system that redistributes inequality. We need a funding model that protects communities, supports stability, and gives councils the tools to deliver.

“We have made our views known to government and asked our three local MPs to support us. The call to action is clear: the government must rethink these proposals, listen to local authorities, and deliver a fair system that builds strong communities.”

A more detailed report on the council’s budget is set to be discussed by councillors next month.