NORTH Somerset is facing a financial crisis – which could see the council issue a Section 114 notice effectively declaring bankruptcy.

Council chiefs have warned cuts to budgets, combined with increases in demand for services and higher costs, has left the authority facing a £24 million shortfall in funds by March 2025.

If the council did issue a Section 114, it would mean government officials step in to set budgets and manage finances – as happened in Birmingham in September last year.

North Somerset Council said the situation has been made worse by “the way the Government allocates councils’ funding and lower than average council tax rates”, which sees the authority claim it receives £50m less than other areas.

The announcement comes despite last month’s Budget, which saw Chancellor Rachel Reeves announce £1.3bn of extra funding for local government.

However, the Local Government Association (LGA) reported a combined funding gap of £2.3bn for councils across the country, meaning the £1.3bn.

In December, the Ministry of Housing, Communities and Local Government will set out details of the Local Government Finance Settlement, outlining how cash will be distributed to councils in 2025/26.

And North Somerset Council has launched a campaign for a fairer deal.

As well as urging the government to do more, the authority has started a petition, giving residents the chance to back calls for a “fairer deal”.

The petition will be presented to the government in December.

Cllr Mike Bell, leader of North Somerset Council

Cllr Mike Bell, leader of North Somerset Council, said: “We’re doing all that we can to push the government to look at council funding and break away from years of budgets cuts.

“This could be a sea change moment, vital in finding solutions that will help us and other councils rise to the challenge of our financial emergency.

“We’re calling on you to s­ign our petition and pledge your support, asking for a fairer deal that can protect services for our communities, helping keep North Somerset a great place to live, work and visit.

“Our petition – boosted by your signature – will be enclosed with a letter to government where we’ll set out why North Somerset needs a fairer deal and how the government can step up and help us avoid a Section 114.

“There’s strength in numbers and every signature counts – I’d like to thank everyone who does their bit and raises their voice for the benefit of local services and local communities.

“Our three local MPs have been very supportive of our case and we will continue to work with them to take our message to government.”

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Deputy leader, Cllr Catherine Gibbons, added: “The £1.3bn already committed in the autumn budget statement shows that the government are listening and trying to help – which is why now is a key time to stand up and add your voice.

“We’re working hard to balance our books, but we do need more long-term funding and flexibilities to protect the local services that local people rely upon.”

The call from North Somerset comes after neighbouring Somerset Council also warned of a possible Section 114 notice being issued, amid a £100m funding blackhole.

After the October Budget, leader of Somerset Council – Cllr Bill Revans – said the increase in funding “will not go far enough to fully address the financial emergency facing councils across the country”.

“What we really need is proper reform, with multi-year financial settlements and appropriate funding to ensure councils can meet ever-increasing demands for core services,” he added.

In her Budget, the Chancellor said the Government would deliver a “real-terms funding increase for local government”.

“We will deliver a significant real-terms funding increase for local government next year, including £1.3bn of additional grant funding to deliver essential services, with at least £600m in grant funding for social care and £230m to tackle homelessness and rough sleeping,” she added.

For more information on North Somerset Council’s fair deal petition, as well as the council’s financial position, visit https://n-somerset.gov.uk/fairdeal.