The leader of North Somerset Council has fiercely criticized the government’s recent “fair funding review,” calling it “a sham” and “a raid on our budget” that will jeopardize essential local services.
Announced on November 20, the government’s revised funding framework reallocates council finances based on updated deprivation data, aiming to direct more resources to communities with the greatest needs. However, North Somerset Council forecasts a £17 million reduction—nearly 20% less than previous allocations—under the new system.
Council leader Mike Bell (Weston-super-Mare Central, Liberal Democrat) expressed deep frustration, stating, “The so-called fair funding review is a sham. It papered over years of neglect, refuses to fix the distorted council tax system, and withholds the essential funding we need to provide vital services. The government ties our hands, then blames us for the fallout.”
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Bell added, “Instead of repairing a broken funding model, ministers have chosen to worsen it. Areas like North Somerset with lower council tax bases are hit hardest because we lack the means locally to meet rising demand. We were promised fairness, but what we received amounts to a raid on our budget forcing brutal service cuts. This is not levelling-up; it is austerity in a new guise.”
North Somerset’s council tax average sits at £1,794, below the £2,000 assumed by the government’s funding formula, leaving it significantly disadvantaged. Furthermore, government caps on council tax increases, recently limited to 5%, restrict the council’s ability to raise additional revenue. North Somerset is currently seeking “exceptional financial support” that might allow it to exceed these caps — a precedent set last year when neighbouring Somerset was permitted a 7.5% rise.
“We will keep fighting for North Somerset,” Bell affirmed, “and urge the government to reconsider these reckless proposals before irreversible damage is done to our communities. As it stands, national policy failures are being dumped on councils, pushing council taxes even higher.”
In response, Local Government Minister Alison McGovern stressed, “This government is taking tough but necessary steps to establish a fair, evidence-based funding system. Poorer councils, previously unable to generate sufficient local tax revenue, will now receive the support they deserve to rebuild vital public services.”
Pete Marland of the Local Government Association acknowledged some positive elements in the funding reforms, such as multi-year settlements and reduced reliance on competitive grants. However, he warned that some councils will fare better than others and urged government to protect all councils from real-terms cuts to safeguard financial sustainability.
The Local Government Finance Settlement’s provisional details, crucial for councils’ budget planning, remain pending, raising concerns over financial uncertainty. Cost pressures in areas like adult social care, temporary accommodation, special educational needs, and school transport continue to mount, demanding significant additional funding to avoid widespread council financial crisis.
North Somerset faces a £25 million budget deficit in the coming year, driven by soaring social care demands and costs. Bell revealed that support packages for some individual children reach hundreds of thousands of pounds, with costs having quadrupled while revenue options remain limited.
Last year, to balance its books for 2025/26, North Somerset Council withdrew £9.1 million from reserves yet had to impose harsh cuts. One councillor described these reductions as “stripping services to the bone,” with the likely closure of three local libraries, cancellation of the council magazine, and a freeze on councillors’ allowances.