Somerset Council has approved a £20 million contract with Newton Consulting Ltd. to advance its ongoing transformation programme, despite concerns from councillors and the public. The deal aims to confront mounting financial pressures with a strategic overhaul of council operations.
Since its formation in April 2023, Somerset Council has sought to cut costs by streamlining services and eliminating inefficiencies. The first phase of its transformation programme realized savings of around £33 million, largely through staff reductions of about 300 positions.
Now entering its second stage—branded ‘Inspiring Innovation’—the council will invest up to £20 million on consultant-led reform efforts to modernize service delivery and internal processes. The initial rollout of this phase is projected to cost £1.5 million, funded partially through asset sales and government-approved capital usage.
READ MORE: How Somerset Primary Schools Are Performing Since the Covid-19 Pandemic
READ MORE: Backwell Faces an ‘Absolutely Bananas’ Surge of 800 New Homes Amid Community Outcry
Transformation here is more than mere cost-cutting; it aims to enhance responsiveness to residents’ needs by consolidating disparate legacy systems inherited from predecessor district and county councils. For example, planning applications have historically been processed on different IT platforms depending on the district, highlighting inefficiency.
The urgency stems from a dire budget outlook. Without effective reform, the council risks issuing a Section 114 notice—essentially ceasing non-essential spending and triggering government intervention with commissioners empowered to make drastic cuts and raise taxes. Somerset faces a budget gap exceeding £45 million this year, projected to soar over £190 million by 2029/30.
Council leadership stresses transformation as vital for financial sustainability. Service Director Sara Cretney described it as a necessary response to “unprecedented financial pressures and increasing service demands.” Portfolio holder Theo Butt Philip emphasized the need for specialist expertise to bolster in-house staff and drive innovative solutions.
The consultancy’s mandate includes modernizing systems, instilling financial discipline, fostering digital and leadership skills, and creating a vision for an agile, digitally-enabled council. Despite the high price tag, the council expects transformation to yield returns of £2.50 to £3 for every £1 invested, enabling future service funding.
Public reaction has been mixed, with some residents and critics questioning the timing and scale of consultant involvement. Concerns have been raised about repeated failures of past reform initiatives and the burden on taxpayers amid continued service challenges.
Councillors have expressed apprehension while affirming the necessity of transformation. Some acknowledge that previous attempts fell short, underscoring the risks ahead. Shadow portfolio holder Sue Osborne warned about the council’s precarious position if savings goals are not met.
Chief Executive Duncan Sharkey acknowledged reliance on transformation to close budget gaps but noted uncertainty about exact savings currently. Shortly after the approval meeting, he received a pay rise following an independent review.
Newton Consulting Ltd. is set to commence work on October 1, with detailed business cases for each project phase to be considered by councillors. A comprehensive people strategy to manage staff impacts will be scrutinized in early October.
Somerset Council’s bold move reflects escalating financial challenges faced by local authorities nationwide, underscoring the difficult balance between fiscal responsibility and sustaining vital public services.