Somerset residents should prepare for higher council tax bills this spring, although the council has yet to finalize the amount of the increase. Somerset Council is currently engaged in detailed negotiations with central government as it prepares to set its budget by late February. The council is seeking a third consecutive year of exceptional financial support to address a significant £73 million budget gap.
Conservative opposition leader Councillor Diogo Rodrigues claimed the council had requested permission last financial year to raise council tax by more than 20%, and was now seeking around a 10% increase for the upcoming year. However, Council leader Bill Revans clarified that these figures were merely illustrative examples, and no formal request for such hikes has been made.
By law, unitary authorities like Somerset cannot increase council tax by more than 4.99% without holding a costly referendum. Of this limit, 2% must be allocated specifically for adult social care, while the remaining 2.99% can be used for other council services.
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For 2024/25, the Ministry for Housing, Communities and Local Government (MHCLG) granted Somerset an exception allowing a 7.49% rise in council tax bills. Councillor Rodrigues alleged that even higher increases had been sought during recent council discussions — claims the council contests.
The Labour government’s recent local government financial settlement revealed a modest increase in Somerset Council’s annual grant—from £249 million to £252 million—prompting local MP Gideon Amos to express disappointment given rising service demands and inflationary pressures.
Somerset’s budget is made up of council tax revenue, business rates retention, income from commercial investments, and proceeds from land and property sales. The latter forms part of exceptional financial support permitting the council to use sale proceeds for daily operations—an unusual allowance to help manage financial shortfalls.
Interestingly, the average Band D council tax bill in Somerset is currently about £1,850, which is below the average £2,060 across unitary authorities in England and Wales. This is due to historical freezing of council tax by predecessor councils and a lower than average tax base.
Deputy leader Councillor Liz Leyshon explained that the council had submitted “illustrative figures” to government, ranging from just above the referendum limit to over 20%, highlighting what would be needed to fully close the budget gap through tax increases alone.
MHCLG is expected to confirm the level of exceptional financial support shortly before the budget-setting council meeting scheduled for February 27 in Bridgwater.
Council leader Bill Revans emphasized that discussions with government are ongoing, dismissing claims of formal high-rate tax increase requests as misleading. He stressed the council’s financial challenges stem from historic tax freezes and a flawed funding system, especially around social care financing tied to outdated property values.
Revans concluded by reassuring residents that any tax increase will be carefully considered through democratic processes, with the council continuing to advocate for fair funding reforms and striving to deliver essential services despite financial pressures.