OVER £50m of cuts and savings have been identified across the three councils which cover Somerset, as they battle to cover a combined deficit expected to be almost £80m.

However, Somerset Council will still have to make further cuts to avoid a budget black hole.

Council budgets across the UK are facing a collective a £5bn black hole, even after planned cuts and savings, an investigation by the BBC’s Shared Data Unit into the finances of local authorities has revealed.

Somerset Council’s lead executive member for finance and resources, Liz Leyshon, said: “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.”

Somerset Council, which replaced Somerset County Council and its four district councils earlier this year, is the largest of the county’s three councils and runs a net revenue budget of 493.4m — larger than those of North Somerset Council and B&NES put together.

It is facing a deficit of £45.5m, but has already planned £40.8m of cuts and savings, the BBC investigation revealed.

Ms Leyshon said: “The cost of providing care for adults and children most in need of support has been rising steadily for over a decade, together with the numbers of people needing care. Central government has no plan for how care can be paid for, especially in areas with a growing older population.  

“After a more than a decade of austerity, inflation is running much higher than any council’s ability to raise income, eating into the ability to fund services. Interest rate rises also affect councils, as well as households with mortgages and those paying rent.”

The council’s executive is due to meet on 6 September where Ms Leyshon will deliver an update on budget outturns and reserves inherited from the previous councils. Somerset Council will work on setting its budget though the autumn.

Ms Leyshon said: “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.”