The future looks bleak for Somerset residents as the local council tries to avoid effective bankruptcy while grappling with a significant budget gap. Somerset Council recently proposed measures to address a shortfall of approximately £100m for the upcoming 2024/25 financial year. These include selling off commercial investments and assets, raising council tax, and implementing over £35m in cuts to public services.
Department for Levelling Up, Housing and Communities declined the council’s request to raise its share of council tax bills by ten per cent, limiting the council’s options. Without this increase, the council is resorting to selling assets and devolving services to town and parish councils to balance its budget. Failure to set a budget by the end of February could result in the issuance of a Section 114 notice, effectively declaring bankruptcy and leading to the appointment of commissioners by the central government to oversee day-to-day services.
The financial strain is attributed to various factors including challenges in recruiting essential staff, increased construction costs due to the war in Ukraine, and heightened social care expenses for an aging population. The council had sought permission to raise council tax by ten per cent, but the request was denied, necessitating additional savings, asset sales, and reserve utilization.
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The proposed savings include closures of waste recycling centers, suspension of infrastructure projects, and the devolvement of services to town and parish councils. Despite these efforts, the council faces an uphill battle, as the cost of core services is projected to exceed available funding.
Local town and parish councils have stepped in to maintain essential services, preventing closures and supporting various community initiatives. The council also plans to utilize reserves and sell off assets to address the financial shortfall.
In the face of these challenges, the council is bracing for a transformation program to reduce its size and staff numbers. The council’s leaders emphasize the gravity of the financial situation and stress the need for a national solution to address the increasing costs of public services.
Members of Parliament representing Somerset have engaged in debates regarding the council’s finances, highlighting the urgent need for government intervention to prevent a financial catastrophe and ensure the provision of essential services. The council’s chief financial officer expressed concern over the projected budget gap for 2025/26, underscoring the severity of the issue.
The upcoming approval of the final budget on February 20 will shed light on the measures to be taken. The public will have an opportunity to engage in the process, either by attending the council meeting in person or through the live-streamed broadcast on the council’s website.