Somerset Council leader, Bill Revans, inset, has spoken about the planned council tax increase

Somerset council tax payers face 7.5% increase as authority tries to avoid bankruptcy

Paul JonesFebruary 20, 20250 Comment0

TAXPAYERS in Somerset are set to see a 7.5% rise in their council tax to pay for services as the county battles bankruptcy.

Somerset Council hass announced it again intends to use Exceptional Financial Support (EFS) agreed by the Government to set a balanced budget for 2025/26.

New papers reveal the cash-strapped authority is facing a budget gap of more than £52 million for the next financial year.

In a bid to tackle the funding blackhole, the council has already been granted permission to raise its council tax demand by 7.5% – above the legally-permitted 4.99% – and has now said it will also once again seek a Capitalisation Direction, a ‘one-off’ which allows the authority to sell assets or borrow to pay for day-to-day costs, for the second year running.

The situation is laid bare in papers published ahead of a meeting of the council’s Scrutiny Corporate & Resources Committee on February 24.

They show a budget gap of £52.2m for 2025/26, despite the chiefs outlining savings of £48m – including £34m of savings through job cuts.

However, it said cost pressures in Children’s and Adults Social Care continue to increase.

If approved, the 7.5% council tax increase – which would see a band D property pay an additional £129 a year – would generate an additional £9.1m, leaving a gap of £43m to be plugged using the Capitalisation Direction.

Cllr Bill Revans, leader of the council, said: “The Government has promised to reform the broken system of funding for local councils like Somerset who are struggling with rising demand and costs for core services like social care. Unfortunately, this will take time that we simply do not have.

“In the short-term we’ve had no choice but to ask the Government for support and that very sadly means we will have to take a difficult vote on putting up council tax bills by the maximum amount allowed.

“We know this is unwelcome, but council tax rates in Somerset will remain below the national average, and below many of our neighbours.

“We will continue to do everything we can to move towards financial sustainability, including exploring all areas to further reduce costs and find savings.

“We will also continue to lobby Government for a fairer system to provide essential services looking after the most vulnerable adults and children in our communities.”

The council tax increase would see Somerset Council charge the average band D property around £1,858 for 2025/26, lower than neighbouring Dorset Council, which is set to charge similar properties approximately £2,101 per year following a 4.99% increase.

In North Somerset, where the council approved a 4.99% increase in council tax this week, Band D properties will pay around £1793.75 a year.

The Somerset Council 2025/26 budget will be discussed at the following meetings, with final decisions to set the budget taken at Full Council on March 5: