Somerset Council is taking a high-stakes gamble on the next phase of its transformation programme to prevent an effective bankruptcy. Established in April 2023, the newly formed council inherited legacy systems and staff from the previous county and district councils, resulting in duplicated services and inefficiencies. With rising demand for local services, the council has sought to streamline operations and reduce costs.
The initial phase of the transformation programme, completed in April 2024, saved approximately £34 million, chiefly through the loss of about 300 staff positions. Despite these savings, Somerset Council still faces a daunting budget gap projected to reach £101 million in the upcoming financial year and potentially exceed £190 million by 2029/30.
To address these fiscal challenges, the council plans to engage a professional partner to manage a more ambitious next phase of transformation, at an estimated cost of around £20 million. Additional funds of up to £18 million have been allocated for possible redundancies, IT upgrades, and necessary reforms, bringing the total budget for transformation efforts to over £72 million. This funding includes proceeds from asset sales and a capitalisation directive from the government, enabling capital receipts to support day-to-day spending.
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Transformation, beyond simple cost-cutting, is aimed at modernising service delivery to be more responsive and efficient. However, this approach has sparked controversy and skepticism. Some councillors and local residents criticize the council’s pace, scale, and oversight of the transformation plans, warning against repeating past mistakes seen in initiatives like the South West One programme. Critics argue that entrusting a single supplier with a multi-year, high-value contract without sufficient scrutiny risks exacerbating existing problems.
Councillor Theo Butt Philip, portfolio holder for transformation, emphasises that the council’s key mission remains serving the community effectively while achieving financial sustainability. He clarifies that the council is open to consortium bids and will retain the flexibility to commission other providers for specific project components. Council officials expect the transformation to deliver returns of £2.50 to £3 for every £1 invested, aiming to regain autonomy from central government intervention.
Members of the council remain divided over the transformation’s approach. Some express concern about the feasibility of achieving the ambitious savings targets within the proposed timeframe and the transparency of measures. Others see the plan as a hopeful framework to inspire innovation and improvement in local service delivery.
The tender for selecting a transformation contractor closed on July 30, with the final decision expected in early September. The chosen partner will begin work in October, with individual business cases for various transformation elements subject to ongoing scrutiny by councillors to ensure accountability and detailed examination of savings initiatives.