North Somerset Council is considering asking the government for permission to raise council tax by more than the usual 5% limit next year due to significant financial pressures. The council faces a daunting £25 million budget gap for the 2026/27 financial year, prompting discussions about obtaining “exceptional financial support” from the government.
Council leader Mike Bell (Weston-super-Mare Central, Liberal Democrat) explained, “We are forecasting a £25m budget gap for next year and are exploring all avenues to address it. This includes potential service reductions, lobbying for better government funding, and difficult decisions about increasing council tax.”
Typically, council tax rises are capped at 3%, with an additional 2% available for councils responsible for adult social care services, unless a local referendum or government approval for an exceptional rise is granted. Neighboring Somerset Council was recently permitted to increase its council tax by 7.5%. North Somerset hopes to receive similar authorization.
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Mr. Bell added, “Exceptional financial support may also involve borrowing to fund transformation projects aimed at long-term savings, alongside possible council tax rises above the normal cap.”
A recent report by the council’s finance officers underscored the severity of the budget shortfall, warning that without exceptional measures, the council’s finances would become unsustainable. If the council fails to balance the budget, it risks issuing a Section 114 notice, which could lead to government intervention.
Highlighting the escalating costs, Mr. Bell noted, “We face unprecedented financial demands, especially for vulnerable children and adults with special educational needs and disabilities. Individual care packages can cost the council hundreds of thousands of pounds, with expenses having quadrupled in recent years, while revenue streams have remained limited.”
Last year, the council tapped into £9.1 million from its reserves to balance the budget but still implemented significant cuts that a councillor said would “strip our services to the bone.” Proposed reductions include the likely closure of three local libraries, elimination of the council magazine, and freezing of councillor allowances.
The council also grapples with financial losses from the Carlton Street Car Park, which loses approximately £250,000 annually due to structural issues that have shuttered half the facility. North Somerset remains locked into a 45-year lease arrangement established in 2012 under a previous administration, a deal Mr. Bell described as “an absolute scandal.”
Further compounding financial difficulties, North Somerset could lose about £17 million annually through upcoming government “fair funding” reforms. Mr. Bell criticized the changes, stating, “There is nothing remotely fair about this for North Somerset, which was already disadvantaged by the existing funding formula.”
The council plans to set its full budget for 2026/27 in February, with the community awaiting decisions on potential council tax increases and service impacts.