North Somerset Council is warning residents they will likely pay higher council tax while receiving fewer services as the local government grapples with a severe financial crisis. At a recent Facebook livestream Q&A on December 16, council leaders outlined the challenges behind the upcoming budget decisions, including potential council tax increases and significant service cuts.
Council leader Mike Bell explained that an anticipated £24 million cut in government funding over the next three years, combined with rising social care costs, has pushed the council’s finances to a breaking point. “We are spending more money than we have coming in,” Bell admitted, highlighting how growing demand for social care amid austerity measures has created a perfect storm.
Social care now accounts for nearly two-thirds of the council’s spending, yet it receives no dedicated government funding. Bell pointed out that while government support has been cut by about 25%, the cost and demand for services continue to rise sharply, resulting in “really significant financial pressures” in the current and coming years.
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To manage this, Bell confirmed that the council is pursuing a transformation program aimed at delivering services differently—by reducing, stopping, or scaling back certain services—and considering necessary council tax hikes. With reserves depleted and savings insufficient, “we have got to use all the tools available to us, including asking local people to pay more,” he said.
The council usually cannot raise taxes beyond 4.99%, but Bell acknowledged that North Somerset is requesting government permission for an “exceptional” increase to cover social care costs. Currently, the average Band D household pays £1,793.75 to the council, one of the lowest rates nationally, but government calculations assume comparable councils charge closer to £2,060.
Bell stressed the council’s commitment to avoiding significant tax rises if possible, working hard to secure better government funding. However, without national-level change, financial strain is set to continue indefinitely. Roger Whitfield, cabinet member for adult social services, added that while the government is reviewing the situation, it won’t report back until 2028, leaving the council facing a “massive budget deficit” in the meantime.
The council is also considering scaling back its council tax support scheme for residents on low incomes as part of cost-saving measures. Bell insisted the council’s legal obligation to provide mandated services limits flexibility: “We don’t get funded for it by the government,” making local cost-cutting efforts challenging.
On the positive side, innovative measures are helping ease some pressure. Deputy leader Catherine Gibbons highlighted the successful use of artificial intelligence in children’s social care to improve efficiency, and new plans to open two local residential children’s homes aim to reduce reliance on costly private facilities.
Environmental savings have also been made: cabinet member for planning Annemieke Waite reported that switching to three-weekly black bin collections saved £1 million annually and boosted recycling rates by encouraging residents to recycle more.
Additionally, the council’s move to devolve certain assets and services, such as play areas and allotments, to town and parish councils aims to empower local communities and share maintenance responsibilities, though it may slightly increase those councils’ precepts.
Despite scrutiny over senior staff salaries following the recent appointment of a new CEO, Bell and Whitfield emphasized that executive pay is a small fraction of overall social care spending and aligned with national standards.
When faced with public frustration, Bell stressed the council’s resolve to tackle these difficult choices head-on rather than resigning. “Walking away is absolutely not a solution,” he said, inviting residents to “challenge us” respectfully and reminding them of upcoming elections in 2027 to influence future leadership.
In summary, North Somerset Council is confronting a perfect storm of increasing social care demand, government funding cuts, and limited local financial options. As a result, residents should prepare for higher taxes alongside reductions in some public services, pending government approvals and evolving cost-saving measures.