Somerset Council Deems Government Funding Insufficient

Somerset Council is slated to receive £607.9 million from the government for its operations in the upcoming year, representing a 5.6% rise compared to the previous year. However, the council has stated that this allocation is insufficient to address its funding shortfalls, potentially leading to the discontinuation of services beyond adult and social care. Liz Leyshon, the deputy leader of Somerset Council, commented that despite the increased grant, the sum is “not anywhere near” the actual rise in costs required to maintain services. Concurrently, the Labour government has declared its intention to provide an additional £2 billion to local councils throughout England next year. The Ministry of Local Government released its provisional Local Government Finance Settlement for the fiscal years 2025 to 2026 on Wednesday. Labour also unveiled a £700 million aid package for authorities across England, many of which, including Somerset, are striving to avert bankruptcy. During an appearance on BBC Radio Somerset, Liz Leyshon, who is also the Liberal Democrat deputy leader of Somerset Council, stated: “It’s not the best news. It’s not going help us close our gap.” She elaborated that due to various Autumn Budget announcements, such as increases to the National Living Wage and employer National Insurance contributions, the local authority anticipates continued financial difficulties. As of October, the projected budget overspend for the 2025 to 2026 period was estimated at £50 million. Ms. Leyshon further voiced apprehension regarding the redirection of funds typically allocated to Somerset Council for rural services, which are now being diverted towards a new national recovery grant. She characterized this new grant as “heavily skewed to urban areas,” even though providing services such as school buses and waste collection recycling is more costly in rural regions. Government ministers have indicated that £600 million will be distributed among councils based on their respective levels of deprivation. They contend that this approach will enhance fairness, as councils in less affluent areas face greater challenges in generating local revenue, and a revised formula will incorporate “the impact of rurality.” Ms. Leyshon remarked that the council will eventually have to consider whether it can continue to provide certain services, such as arts and culture, given the substantial commitment required for adult social care and children’s services. Somerset Council plans to formally request government permission to increase council tax next year beyond the current 5% cap. The local authority has consistently maintained that its council tax revenue is significantly lower than that of adjacent authorities, a situation attributed to previous Conservative administrations opting to freeze it. Furthermore, Somerset Council intends to seek an extension of the Capitalisation Direction, which has enabled it to utilize proceeds from asset sales or borrowing to finance its routine operations. For updates, follow BBC Somerset on Facebook and X. Story ideas can be submitted via email or WhatsApp at 0800 313 4630. Copyright 2024 BBC. All rights reserved. The BBC bears no responsibility for the content found on external websites. Information regarding our external linking policy is available for review.