SOMERSET Council has approved an “astronomical” council tax increase of 7.5 per cent after it was given special permission by the government to hike the tax beyond the normal limit.

Despite the higher taxes, more than 550 members of council staff are being laid off and parking charges are set to be introduced to free car parks and on Sundays. As the council met to vote on the budget for 2025/26 on March 5, councillors were told its financial situation was “critical.”

For the second year in a row, the council relied on “exceptional financial support” from the government to meet its legal duty to balance its books. This exceptional support is not a gift of more money for Somerset — but permission to get more money out of Somerset.

The government has given the council permission to raise its council tax beyond the normal 4.99 per cent limit to 7.49 per cent and to continue its “capitalisation” programme of borrowing and selling off council assets to raise revenue.

Council leader Bill Revans (North Petherton, Liberal Democrat) said: “This is not a bailout or a long-term solution. We are asking our residents to pay more, and we will be required to sell our assets or borrow money to cover everyday running costs.”

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As in many areas across the country, Somerset Council is facing a crisis as the demand for and cost of adult and children’s social care services increases faster than council funding. Mr Revans said that special educational needs and disabilities (SEND) applications had increased by 220 per cent over the last four years.

He said: “We must absolutely meet the needs of these children, these are vulnerable children who need our support.”

The council had been facing a £52.2m black hole in its revenue budget, which covers day-to-day spending — even after finding £48m of savings. Although the higher council tax Somerset locals will pay will raise £9.1m for the revenue budget, the council will need to plug the remaining £43m it needs for day-to-day spending in 2025/26 by borrowing money or selling properties and assets it owns.

Opposition councillors said the Liberal Democrat administration was “selling off the family silver” but Mr Revans said the council had no choice. He warned that if the council could not balance its budget, it would be forced to issue a section 114 notice which would see government commissioners take over its finances.

He told councillors: “It’s our democratic responsibility to run this council and it’s us who were elected to do that. This is not a situation of our making or our choosing but it is our responsibility to resolve it.”

Mr Revans described Somerset’s exceptional council tax increase agreed with the government as “above the cap by a modest two-and-a-half percent,” warning that if Somerset ended up in the hands of government commissioners, they would raise council tax by double digits.

He added that council tax bills in Somerset would remain lower than in Wiltshire, Dorset or Cornwall. The council tax increase means people living in a typical band D property will pay an additional £129 a year, or £2.49 a week.

But Andy Dingwall (Bridgwater East and Bawdrip, Conservative) said the agreed rise was “astronomical.”

He said: “This [budget] document fails to deliver your manifesto while failing to get a grip of finances. All of Somerset is angry that they have once again been let down by this absolute lack of leadership.”

Leader of the Conservative opposition on council, Mandy Chilcott (Minehead) described the budget as “a heartbreaking read.”

She said: “We are seeing a raft of increased fees and charges as well as reductions in budgets for household waste recycling centres and reduction in grants to the Brewhouse Theatre, reductions in grants to help disadvantaged young people get to work.”

But the Liberal Democrats laid the blame for the council’s financial situation with the Conservatives for freezing council tax for six years when they ran the council, leaving Somerset with a lower base from which it could increase council tax in future. Ms Chilcott insisted the Conservative administration had still delivered “truly balanced” budgets during that time.

She said: “By melting the council tax freeze, you will be flooding the people of Somerset with a wave of additional taxation that this Lib Dem administration has wanted for so long, putting more pressure on the residents — many of whom are already facing extreme financial hardship.”

Councillors voted 59-34 in favour of passing the budget, with two abstentions — despite warnings that voting down the budget would force the council to issue a section 114 notice, as no alternative budgets had been proposed. But opposition councillors said they feared voting in support of the budget would be seen as supporting the plans to introduce parking charges, a decision which had been taken on Monday March 3 by the council executive.

Even after the high council tax increase, cuts, and potential sale of council assets planned in 2025/26, the council is still expected to face major budget gaps again in future years. It is expected to face a £101m black hole in 2026/27 — rising to £190m by 2029/30.

Mr Revans said: “It is clear the funding model is broken and I welcome the government’s commitment for reform to funding in key areas of pressure like social care and special educational needs and disabilities. The situation for local government remains critical and we need action urgently, or councils like Somerset will simply run out of money.”