North Somerset Council is considering requesting permission to raise council tax by more than the usual 5% limit next year, as it grapples with a projected £25 million budget deficit for the 2026/27 financial year.
Facing a significant financial shortfall, the cash-strapped council is currently negotiating with the government for “exceptional financial support.” Typically, councils are capped at a 3% council tax rise, with an additional 2% permitted to fund adult social care. Any increase beyond that requires a local referendum or government approval. Last year, neighboring Somerset Council was granted permission to increase its council tax by 7.5%.
Council leader Mike Bell (Weston-super-Mare Central, Liberal Democrat) emphasised the tough choices ahead. “We are forecasting a £25m budget gap next year and must explore all options to bridge it,” he said. “This includes service cuts, lobbying for better government funding, and possibly council tax rises above the usual cap.”
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Council finance officers recently warned that without exceptional financial support, the council would be unable to balance its books. Failure to do so would necessitate issuing a section 114 notice, potentially resulting in government intervention in the council’s finances.
Bell highlighted the growing pressure on council services, particularly for vulnerable groups such as children and adults with special educational needs and disabilities. “Costs for supporting individual children have quadrupled in recent years, reaching hundreds of thousands of pounds,” he said, as funding options remain constrained.
Last year, the council had to draw £9.1 million from reserves to balance its budget. Despite this, it implemented severe cuts, which included the likely closure of three local libraries, discontinuation of the council magazine, and freezing councillors' allowances. One councillor described the cuts as measures that would “strip our services to the bone.”
Bell also criticised the ongoing financial losses related to the Carlton Street Car Park, which is losing the council approximately £250,000 annually due to structural issues that have led to half the car park being closed. The council remains locked into a 45-year leaseback agreement signed in 2012, which Bell called “an absolute scandal” and “the worst deal any council has ever signed.”
Additionally, North Somerset Council faces potential further funding cuts due to the government’s upcoming “fair funding” review, which could reduce its budget by around £17 million annually. Bell described the current funding formula as unfair, particularly given North Somerset’s existing disadvantages.
The council is set to finalise its budget for 2026/27 in February, with council tax decisions and the pursuit of exceptional financial support expected to be pivotal topics.