Somerset Council has approved a significant council tax increase of 7.5%, following special permission granted by the government to exceed the normal tax limit.
Despite the hike, over 550 council staff members are set to be laid off, and parking charges are scheduled to be introduced in free car parks as well as on Sundays. The council’s financial situation has been described as “critical,” as it relies on “exceptional financial support” from the government for the second consecutive year to fulfill its legal duty to balance its books.
The council is permitted to raise its council tax beyond the standard 4.99% limit to 7.49%, as well as continue its “capitalisation” program of borrowing and selling off assets to generate revenue. Council leader Bill Revans emphasized that the council has no other option but to ask residents to pay more and resort to selling assets or borrowing to cover everyday running costs.
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The increased demand and cost of adult and children’s social care services, particularly in special educational needs and disabilities (SEND) applications which have surged by 220% over the last four years, have exacerbated the council’s financial challenges. Despite identifying £48m in savings, the council faces a £52.2m deficit in its revenue budget for 2025/26. The alarmingly high council tax rise is projected to generate £9.1m for the revenue budget, leaving a remaining deficit of £43m, which the council aims to address through borrowing or selling properties and assets.
The Conservative opposition voiced concern about the impact of the budget, with councilor Andy Dingwall describing the approved rise as “astronomical” and Mandy Chilcott labeling it as “heartbreaking.”
Despite the approved budget, the council anticipates facing significant budget shortfalls in the years ahead, projecting a £101m deficit in 2026/27 and a staggering £190m shortfall by 2029/30.