North Somerset Council leader Mike Bell has fiercely criticised the government’s ongoing “fair funding review,” warning that it disguises severe cuts that could see the council lose up to a fifth of its government funding.
Although the government claims the review aims to boost local authorities’ core spending power by 3.1%, Mr Bell told the council cabinet on September 10 that the reality is starkly different for North Somerset. “The so-called fair funding review threatens to strip away millions of pounds from councils like ours,” he said.
The government’s funding formula assumes an average council tax of £2,000, but North Somerset’s average council tax is significantly lower at £1,794. This discrepancy, combined with changes in the funding model, could reduce North Somerset’s budget by as much as £17.4 million — almost 20% less funding from central government.
“That’s not fair funding. That’s austerity in disguise,” Mr Bell stated. He warned that reduced funding would force cuts to vital services, deepen financial strain, and weaken support systems for the most vulnerable residents. “We are being asked to do more with less — penalised for factors beyond our control.”
Further complicating matters, council tax increases are capped by government regulations. This means that councils with lower council tax cannot generate as much additional revenue as those with higher rates, putting areas like North Somerset at a financial disadvantage.
In response, North Somerset Council has formally voiced its concerns and urged its three local MPs to advocate on its behalf. Mr Bell issued a clear call to action: “The government must reconsider these proposals, listen to local authorities, and create a fair funding system that supports communities rather than dismantling them.”
The issue of funding inequity has garnered significant public support. Last year, over 1,000 residents signed a council-organised petition demanding fairer funding. North Somerset’s historically lower council tax base means it receives £50 million less annually compared to neighbouring councils.
Like many other councils, North Somerset faces rising costs, especially in children’s and adult social care. Mr Bell revealed that the council anticipates a £12 million budget gap in coming years and is already forecasted to exceed its current year budget by £4.5 million due to social care expenses and lower-than-expected income from services like recycling and building control.