North Somerset councillors have voted to approve an 8.99% increase in council tax for the 2026/27 financial year, a decision permitted by the government to help address significant budgetary challenges. This rise exceeds the usual 4.99% cap, reflecting the local authority’s struggle to balance its budget amid soaring social care costs and substantial government funding cuts.
Council leader Mike Bell acknowledged the difficult decision in the council meeting, warning residents that while taxes will rise, “some of their services are going to deteriorate.” The increase is expected to generate an additional £5.9 million in revenue, yet the council faces a concurrent reduction of £6 million in government grants, with cuts expected to grow to £18.6 million over the next three years. Bell emphasized that the council tax increase is effectively a consequence of decisions made at Westminster and Whitehall.
North Somerset is among only seven councils nationwide granted permission to raise council tax above the cap from April. For an average band D property, the annual charge will be £1,955, below the national average of £2,062. The increase adds approximately £13.44 per month on the council tax portion for these households.
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In a bid to manage budget shortfalls, the council plans to reduce council tax reduction support offered to working-age households. About 11,250 low-income households currently receive reductions ranging from 18% to 75.5%, but this support will now be cut by eight percentage points across all income bands—equating to a savings of nearly £250,000. Pensioners’ support remains protected by law. The move has drawn sharp criticism from Green councillor Thomas Daw, who described it as “absolutely immoral” and urged the council to use reserves instead. However, the majority voted against preserving the reductions citing concerns about exhausting reserves; last year £9.1 million was drawn from them to balance the budget.
To soften the blow for those facing extreme financial hardship, a new £371,000 hardship fund funded externally will be established to provide targeted assistance with council tax payments.
Other austerity measures include transferring nurseries to academy trusts and further reductions in library hours, which councillors described as “soul crushing.” Councillors themselves have frozen their allowances for the second consecutive year to contribute to savings. The council warned that failure to set a balanced budget could force it to issue a section 114 notice, leading to government intervention with potentially harsher cuts.
While Conservative councillors contested some claims about budget origins, Bell attributed the current financial squeeze partly to decisions made by previous administrations, such as keeping council tax rises low before 2019, accumulating losses on properties, and delaying service transformation.
During the debate, Independent councillor Mike Bird called the tax rise “horrendous,” but stressed the necessity given the removal of £19 million from the council’s budget. Reform UK’s Stuart Davies highlighted the disproportionate impact on residents in larger homes who may be asset-rich but cash-poor. Conservative Michael Pryke criticized the council administration for lacking a long-term strategy, suggesting residents face a cycle of repeated tax hikes with diminishing services after seven years of Liberal Democrat leadership.
Independent Caritas Charles pointed out that the rising tax burden reflects national funding failures pushing local costs onto taxpayers, especially for essential services like social care, children’s services, and housing.
The council tax increase and budget passed with 35 votes in favor, six against, and two abstentions, marking a contentious chapter in North Somerset’s efforts to manage financial pressures while maintaining vital services.