North Somerset Council leader Mike Bell has labelled the government’s proposed ‘fair funding review’ as “austerity in disguise,” highlighting concerns that the changes could slash the council’s funding by nearly a fifth.
The government claims the review will enhance local authorities’ core spending power by 3.1%. However, at a council cabinet meeting on September 10, Mr Bell challenged this assertion, stating, “While presented as fairer funding, these proposals risk stripping millions of pounds from councils like ours.”
He explained that the government’s assumptions are based on an average council tax of £2,000, but North Somerset’s average stands at just £1,794. This discrepancy, combined with funding formula adjustments, could result in a £17.4 million cut—nearly 20% of the council’s government funding.
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“That’s not fair funding. That’s austerity in disguise,” Mr Bell emphasized. He warned of severe consequences, including reduced resources, deeper cuts, and a diminished safety net for vulnerable residents. “We are being asked to do more with less — punished for circumstances beyond our control.”
The government imposes a cap on how much councils can increase council tax. In areas like North Somerset, where council tax starts lower, this cap limits the potential for raising additional income compared to regions with higher council tax rates, leaving the council at a disadvantage.
Mr Bell affirmed that the council has communicated its concerns to the government and enlisted the support of its three Members of Parliament. “Our call to action is clear: the government must rethink these proposals, listen to local authorities, and deliver a fair funding system that strengthens communities rather than dismantling them.”
Last year, over 1,000 residents signed a petition initiated by the council demanding fairer funding for North Somerset. The council highlighted that because of its historically lower council tax base, it receives approximately £50 million less annually than neighboring councils.
Facing surging costs in children’s and adults’ social care, North Somerset Council, like many others, has enacted significant budget cuts each year. Mr Bell revealed the council anticipates a £12 million budget gap in coming years and currently forecasts an overspend of £4.5 million for this financial year, driven by social care demands and shortfalls in income from services such as recycling and building control.