Somerset Council grapples with £45.5m deficit: planned cuts and challenging budgets ahead
By Daniel Mumby - Local Democracy Reporter
22nd Aug 2023 | Local News
Over £50m of cuts and savings have been identified across the three councils which cover Somerset, including Somerset Council, North Somerset Council, and Bath and North East Somerset Council (B&NES), as they grapple with a combined deficit expected to reach almost £80m. Further cuts will be required to avoid a budget shortfall.
An investigation by the BBC's Shared Data Unit has revealed that council budgets across the UK are facing a collective £5bn black hole, even after planned cuts and savings.
Having replaced Somerset County Council and its four district councils earlier this year, Somerset Council is the largest of the county's three councils. It runs a net revenue budget of £493.4m, larger than those of North Somerset Council and B&NES. It is facing a deficit of £45.5m but has already planned £40.8m of cuts and savings.
Somerset Council's lead executive member for finance and resources, Liz Leyshon, commented on the situation, stating, "The BBC survey of local government finance doesn't surprise me in the least. The current financial position of councils with care responsibilities simply isn't sustainable."
She further elaborated on the increasing cost of care for adults and children in need and the lack of planning from central government for care funding. Ms Leyshon also emphasised the impact of inflation and interest rate rises on the council's ability to raise income and fund services.
Ms Leyshon is set to provide an update on budget outturns and inherited reserves on 6 September when the council's executive meets. Somerset Council will then continue working on setting its budget through the autumn.
She further added, "No one should underestimate how challenging this year's budget is, and how challenging next year's budget will be. Somerset has benefitted from the one-off savings of bringing together five Councils, and there will be savings through combining the Council's services but that will take time. We know we must ensure that we maximise opportunities for Somerset's residents and businesses, as we continue to take care of those most in need."
Meanwhile, North Somerset Council faces a £19.8m deficit and has so far planned £10.4m in cuts and savings, whilst B&NES has a predicted deficit of £14.5m with only £2.4m identified in cuts and savings. The leader of North Somerset Council warned of more "tough decisions", and B&NES declined to comment.
All three councils increased their council tax by the maximum allowed in their last budget, reflecting the ongoing financial pressures local authorities face in the region.
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