COUNCIL Tax looks set to rocket across Somerset in order to plug a £66m black hole in County Hall’s budget for the next financial year.

Somerset Council’s share of Council Tax could rise by as much as 7.5 per cent from April following an announcement from Government.

The cash-strapped council, which risks bankruptcy unless urgent action is taken, had sought ‘exceptional financial support’ from the Government as part of its budget setting for 2025/26.

Somerset Council’s precept looks set to be increased 2.5 per cent above the national cap of 5 per cent.

Since its creation in April 2023, the council has been taking emergency action to reduce costs and plans to save a further £47m next year, including £34m by reducing the number of staff and managers employed by April 2025.

However, cost pressures in children’s and adults social care continue to soar nationally and Somerset Council is facing a gap of around £66m for 2025/26.

Leader Bill Revans (Liberal Democrats, North Petherton) wrote to Angela Rayner MP, Secretary of State for Housing, Communities and Local Government (MHCLG), to highlight the challenge and request Exceptional Financial Support.

The MHCLG has now confirmed Somerset Council will be allowed to raise its Council Tax by up to 7.5 per cent. However, 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.

Councillor Bill Revans, leader of Somerset County Council, outside County Hall in Taunton (Photo: Daniel Mumby)
Councillor Bill Revans, leader of Somerset County Council, outside County Hall in Taunton (Photo: Daniel Mumby) (Councillor Bill Revans, leader of Somerset County Council, outside County Hall in Taunton (Photo: Daniel Mumby))

Cllr Revans said last week: “We have been saying for some time that the funding model for Local Government is broken. The new Government has acknowledged this and promised reform and additional funds in key areas like social care by 2028.

“But 2028 is too late. We need urgent financial help now.

“We have done everything we can to reduce our costs with a series of unprecedented and heart-breaking decisions since 2023.

“Without additional funding we have had no choice but to ask the Government for permission to increase Council Tax above the 5 per cent cap. This is not a decision taken lightly, but our council tax base is below the average nationally, and the feedback from our residents suggest they would rather pay more than see services cut.

Somerset Council’s budget will be discussed at the following meetings:

  • Extraordinary meeting of Scrutiny Corporate and 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.

Agendas and papers will be published in advance with the public encouraged to attend the meetings, either in person or online.