The much anticipated plan to enable Somerset Council to bridge a budget gap of some £100m was published today. The plan will see a combination of tax rises, capitalising expenditure to borrow against it and a major reduction in the scope of the organisation.
The elements of the plan have been extensively discussed over the past 2 months. As a result there is little surprising in it.
The council acknowledges the need for urgent action in the face of what it describes as “unprecedented pressures”. These have been driven by inflation, spiralling costs – notably in social care – and a “broken” system for funding local government. They have also been the result of some poor investment decisions taken in the last 5 years by the district councils.
The plan will see Somerset Council seek permission to raise council tax by 10% without holding a referendum. That, claims Leader Bill Revans, would raise the average band D Council Tax bill to £1,810. Which is still below the unitary council average of £1,815. It will raise around £17m each year.
The council will also plan to utilise £36.8m of its reserves.
Finally Somerset Council will ask government for a ‘capitalisation direction’ for around £20m. This effectively allows the council to borrow money or sell assets to fund day-to-day running costs.
Finally there are plans for the council to sell assets to raise funds too.
If that sorts the immediate deficit problem, there are further significant changes needed for the future. This will necessitate a slimmed down council doing less, but living within its means.
The council is looking at options to spend less by reducing or stopping discretionary services. That will enable it to focus on essential statutory services. These include CCTV, public toilets, theatres, leisure services, visitor centres and closing five recycling sites.
However statutory services will be under the microscope too. In adult social services for instance. Here options include reducing spend on mental health and substance misuse support and decommissioning properties no longer essential to deliver services.
The proposals will go forward to the following timetable:
· 15 January. Meeting of Executive Committee will discuss Budget Update report, including savings proposed approach to bridging the funding gap.
· 22 January. Budget consultation closes.
· 25 January. Audit Committee to discuss technical budget papers.
· 1 February. Meeting of the Corporate and Resources Scrutiny Committee. Due to discuss Budget Update report, including savings proposals.
· 7 February. Meeting of Executive Committee to consider feedback from Scrutiny Committee and results of budget consultation before recommending budget for decision at Full Council.
· 20 February. Full Council meets to agree final budget for 2024/25.
How can the Libdems call themselves democratic when they plan to ask the government to give them special powers to raise council tax without a referendum? I accept services would need to drop if they don’t but it should be up to the people of Somerset to decide whether they are prepared to pay more.
Much of this financial mess is of their own making and they expect use to pay even more whilst receiving even less than we do today. I’m sick of their stupidity costing me more every year. The Unitary approach was supposed to dig us out of the financial hole, no? Where are the savings from that?? I for one already circa £3.5K pa Council tax so this increase would push that towards £4K pa and yet I don’t burden the council and their funds other than refuse collection and using the tip (which may close!!!). It’s almost comical.
The Lib/dems are very good at wasting other people’s money
I am dismayed to see mental health services and recycling centres on the threatened list but the the deficit can’t be laid at the door of just the Lib Dems. From what I recall, the Lib Dems were not in favour of the change to a unitary council. It was the Conservatives who somehow pushed it through. The Lib Dems are now responsible for sorting out the inherited finances of not only the district councils but the formerly conservative-run county council as well. I wonder how well managed that was?
Where is the accountability for the bad financial investments accrued by the once district councils. It seems to have been dismissed out of hand. Officials should be held to account for wasting public money and removed from posts.
At 87 I already have to think hard about transport and toilets before leaving my home to go a mere 4 miles into Street. Now I have blustering threats of potential closure of services – when I (all of us) savoured promises of big savings on the creation of a Unitary Authority. Where aree the promised savings? Should I have to ensure hardship because of the incompetence (I cannot think of other causes) of those who are supposed to be wise enough to plan and govern and care. Time for some heads to roll surely…