North Somerset Council has formally requested government approval to increase council tax by up to 9.99%, surpassing the usual 4.99% cap, as it grapples with a significant budget shortfall and mounting financial pressures.
According to papers prepared for the council’s upcoming cabinet meeting on February 11, the council submitted this request in December under the guise of “exceptional financial support.” However, with only two weeks remaining until the budget must be finalized, the council has yet to receive a response from the government and is also awaiting the final local government finance settlement.
The delay has created uncertainty, as the cabinet’s agenda stresses: “Without this essential information the cabinet are unable to finalise budget plans for the 2026/27 financial year and recommend a balanced budget.” Consequently, instead of finalizing a balanced budget during the cabinet meeting and then submitting it for full council approval, the cabinet plans to propose the balanced budget directly to the full council on February 24.
READ MORE: Plans Launched for Traffic Restrictions on ‘School Streets’ in Bath
READ MORE: Matt Weston: Somerset’s Rising Skeleton Star Dominating the Ice
In December, the council warned that without exceptional financial support, it faces the risk of issuing a section 114 notice — a formal declaration that it cannot balance its finances — which enacts emergency measures.
A nearly 10% council tax increase would translate to an additional £14.93 per month on the average Band D household’s bill. To put this in perspective, this increase is more than the cost of a Netflix ad-free subscription.
Council leader Mike Bell addressed residents on a December Facebook livestream, candidly acknowledging the council’s precarious situation: “We can’t deliver enough savings, we haven’t got the reserves left to produce a balanced budget for next year, so we have got to use all the tools available — including asking local people to pay more.”
He warned frankly, “You will be paying more and receiving fewer services.” The council’s rising expenses stem largely from soaring costs and demand for social care, which accounts for nearly two-thirds of its spending, combined with shrinking government funding.
Bell emphasized that the government’s ongoing fair funding review, which will reduce North Somerset Council’s funding by £18.6 million (20% over three years), has been “the straw that broke the camel’s back.”
The council initially faced a budget shortfall of £25.9 million but major planned savings, including cuts and new income streams, have reduced this deficit to £8.4 million. This remaining gap must be closed by March 11, as councils are legally obligated to set a balanced budget each year.
If North Somerset fails to meet this obligation, its chief finance officer must issue a section 114 notice — effectively signaling insolvency — a drastic move rarely taken, with only 17 known cases in the UK, 11 of which have occurred since 2018.
Social care cost increases have forced the council to impose severe cuts in recent budget cycles. Last year, it drew £9.1 million from its reserves to balance the 2025/26 budget, yet still implemented deep service cuts. These included closing two local libraries, discontinuing the North Somerset Life magazine, and freezing councillors' allowances — measures that one councillor described as “stripping services to the bone.”
Speaking at the December cabinet meeting, Mike Bell stressed the urgency: “There is a point where service costs will exceed the total budget, and one-off exceptional support may not suffice.” He added, “Only systemic change will resolve this. Exceptional financial support might help us get through 2026/27, but fundamental government action is needed to fix this crisis.”