HOUSEHOLDS in Somerset could be faced with a tax hike this year as Somerset Council looks to stay afloat.
The cash-strapped authority has been granted permission by the government to raise its share of council tax above the national cap of 5%, to 7.5%.
The authority has been scrambling to reduce its operating costs to avoid bankruptcy since it declared a financial emergency in November 2023.
It blames the rising cost pressures in children’s and adult social care, which continue to soar nationally.
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Despite implementing cost-cutting measures – such as selling off £71 million of buildings and offices in the county as well as further plans to save £34m by reducing the number of staff and managers by April – the council is still facing a £54m gap in its budget for the next financial year.
MHCLG has now confirmed Somerset Council will be allowed to increase council tax by up to 7.5% – 2.5% above the national cap of 5%.
The council will now meet to decide whether to agree to the increase.
Cllr Revans said: “Today’s announcement gives us clarity and we will need to consider the implications before we finalise our budget proposals for debate and decision at full council later this month.”
As the increase will not raise enough money to fill the gap, Somerset Council will again be reliant on a Capitalisation Direction.
This is a form of one-off assistance offered last year, which allows councils to sell assets or borrow money and use the proceeds to fund the budget gap and the day-to-day running costs.
Somerset Council’s budget will be discussed at the following meetings:
- Extraordinary meeting of Scrutiny Corporate & Resources – February 17
- Extraordinary meeting of the Executive – February 19
- Revised Full Council meeting date for Budget proposals – February 26
- Reserve Full Council meeting date – March 5
READ MORE: Click here for more political news from your Somerset Leveller
Has the council collected all the council tax debts? The Leveller did an article on this last year and the amount owed was half the deficit which was ridiculous. Has this changed or are people still being allowed not to pay? which then obviously impacts on everyone else on services and increased council tax this coming year. If debt is not chased to the fullest the council needs to be held accountable for that too.
How is failure allowed to be rewarded? Duncan Sharkey gets a 2.5% pay rise as well as huge bonuses within which the council he is CEO of has brought the County to its knees with debts beyond belief!!! I ask why and who even contemplates rewarding such failings with incomprehensible rewards? Not only does this incompetence run at local level but throughout the Country itself! How are these “parliamentary representatives ” and “Councillors” rewarded when all they are doing is bringing the country to the point of no return. I never knew failure was rewarded so greatly……
What the ff are you on about David fuller
Somerset County Council combined Sedgemoor, South Somerset, Mendip, West Somerset and Sedgemoor Councils to form Somerset Council. Savings expected with loss of staff and selling district council offices like South Somerset Council offices. Somerset Council are now making redundancies of approximately 25%, then increasing Council Tax by 7.5%
SAVINGS WHAT SAVINGS
From a pensioner of 74 with increase of £20 per week and loss of Winter Fuel Allowance. This Government is a disgrace..
Why are we paying for your debts take money out your own pockets to pay for what u have done you do is pay money on pointless crap like for instance Shepton mallet how much did it cost us to put a pointless over sized Xmas tree and brand new Xmas lights but the money where it needs to go like pay our officers more money to stop all the thefts that keep happening and they don’t do anything because they are not getting payed enough sort all ur crap out and stop putting your problems on us who work hard end of story
Vote of no confidence- unfit for purpose!
Silk Mills park & ride prime example of incompetence.