Conservatives say the report shows weak financial management, while Lib Dems blame inherited problems.

Standfirst: Somerset Council's one-star finance rating has sparked a political row between the Conservatives and Liberal Democrats.

SEO title: Somerset Council finance rating sparks Tory and Lib Dem row

Meta description: Somerset Conservatives and Liberal Democrats have clashed after a CIPFA review gave Somerset Council one star out of five for financial management.

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Somerset Council's finances have sparked a fresh political row after an independent review gave the authority one star out of five. The Chartered Institute of Public Finance and Accountancy report was published before the council's audit committee met on 28 May.

The review described the council's financial management as "weak" and raised concerns over leadership, culture, accountability and the pace of change. It said the council's leadership had "not yet proven" it could deliver stronger financial management.

The Conservatives, who form the official opposition at County Hall, said the report showed the ruling Liberal Democrats had failed to move quickly enough with the council's transformation programme. The Lib Dems said they had worked to reduce the deficit and blamed decisions made before the new unitary council was created.

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CIPFA also said the council's reliance on a third consecutive year of exceptional financial support from central government was "deferring the changes that are needed" for long-term stability. The report said there was "insufficient evidence" to show the transformation programme would deliver the changes required.

Councillor Dawn Denton, Conservative shadow portfolio holder for finance, said: "This is one of the most serious independent assessments Somerset Council could receive.

"After four years of Lib Dem control and three years running the new unitary authority, the council has been given just one star out of five by CIPFA, the UK's leading public finance body.

"Time and again independent organisations have warned that the council is not moving quickly enough to secure its financial future.

"The report repeatedly identifies a lack of pace, a lack of accountability, weak financial management, weak controls and a failure to embed the cultural change needed to turn the organisation around."

Opposition leader Councillor Diogo Rodrigues said the report should act as a warning before the May 2027 local elections. He claimed Somerset taxpayers had seen more than £19m spent on consultants and transformation support in three years, while services continued to struggle.

He said: "Residents are entitled to ask what they have received in return. Council tax has risen sharply, services continue to struggle, and Somerset remains dependent on emergency financial support and the sale of council assets to balance the books.

"We have cleaned up the Lib Dems' financial mess before, and we are prepared to do so again."

Council leader Bill Revans said Somerset Council had inherited a difficult financial position from the former Somerset County Council. He said the rating reflected a decision by the previous Conservative administration to approve the use of MS Dynamics for financial systems, despite repeated warnings not to do so.

He said: "We've been clear throughout that Somerset Council has a difficult inherited financial position from Somerset County Council.

"This rating reflects the decision by that Conservative administration to approve the use of MS Dynamics for our financial systems, in spite of repeated warnings not to do so.

"We have worked hard to reduce the deficit from an enormous £123m (when we declared a financial emergency) and we are now in recovery, working towards a budget without exceptional financial support in 2027/28.

"All alternative routes would have led to declaring effective bankruptcy, double digit council tax rises and expensive commissioners running the council, asset stripping Somerset and slashing services."

The CIPFA report also criticised what it called an inconsistent approach to budget ownership and accountability, including departments failing to deliver savings. It said the council's cultural consolidation remained incomplete, with parts of the organisation still operating on previous models.

The row comes as Somerset Council continues to face pressure over its finances, services and use of exceptional financial support. The next local elections are due to take place in May 2027.

Original reporting: LDRS/Daniel Mumby

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