Somerset residents can expect an increase in their council tax bills this spring, although the final amount remains undecided. Somerset Council is currently in detailed negotiations with the central government to finalize its budget, scheduled for late February. The council seeks a third consecutive year of exceptional financial support to bridge a significant £73 million budget gap.
Conservative opposition leader Councillor Diogo Rodrigues has claimed the council previously sought permission for a tax increase exceeding 20% last year and is now requesting around a 10% hike for the upcoming financial year. However, Council leader Bill Revans clarified that these figures are purely illustrative, and no formal request for such increases has been made.
By law, unitary authorities like Somerset cannot raise council tax by more than 4.99% without holding a costly referendum. Of this limit, 2% is allocated exclusively to adult social care, while the remaining 2.49% funds other council services. In 2024/25, the Ministry for Housing, Communities and Local Government (MHCLG) granted Somerset an exception permitting a 7.49% increase.
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Rodrigues further alleged the council requested a rise beyond this figure during recent executive committee meetings in Taunton. He stated: “Last year, this administration sought, and received, government permission to raise council tax by around 7.5%, having initially requested over 20%. For this year, balancing the budget again appears to rely on hikes exceeding the 4.99% referendum threshold. I have been informed the council approached the government about a 10% increase for 2026/27.”
The Labour government’s local government financial settlement, announced just before Christmas, indicated only a modest increase in Somerset Council’s annual grant, from £249 million to £252 million. This has drawn disappointment from local MP Gideon Amos amidst growing service demands and rising costs.
Somerset’s budget also relies on council tax revenue, partial business rates retention, commercial income, and proceeds from land and property sales. These asset sales form part of the exceptional financial support mechanism, enabling the council to use such proceeds to fund everyday services—a practice typically not allowed.
Despite the recent tax rises, Somerset’s average Band D council tax remains around £1,850, lower than the £2,060 average for unitary authorities. This is due in part to a smaller tax base and a six-year council tax freeze by the former Somerset County Council during the 2010s.
Deputy leader Councillor Liz Leyshon emphasized that “illustrative figures” for necessary council tax increases have been submitted, ranging from just above the referendum limit to over 20%, to illustrate the scale needed to close the budget gap solely through tax rises. For upcoming years, the council has applied for further exceptional financial support, aiming to avoid dramatic one-off measures.
MHCLG will confirm the level of financial support shortly before the council sets its annual budget on February 27 in Bridgwater. Council leader Revans stressed ongoing discussions with the government and requested clarity amid political disagreements.
He said: “While we did increase council tax above referendum levels last year, Somerset’s rates are still substantially below neighboring councils. Historical tax freezes from 2010 to 2016 have contributed to our current financial challenges. Our finances remain precarious, and we are negotiating additional support. We have proposed illustrative increases consistent with government average Band D levels but have not made formal requests. Misrepresenting this is unhelpful.”
Revans added that any council tax decision will follow democratic procedures, with no final requests currently submitted. He pledged continued lobbying for fair funding and urged reforms in council tax and social care financing. Highlighting the outdated reliance on 1991 property values for funding, he said, “This is the fundamental challenge we face.”
Despite financial fragility, Somerset Council remains committed to maintaining services. Revans concluded, “Our officers and members are working tirelessly to ensure sustainability and deliver for the people of Somerset.”