Somerset residents will face higher council bills in the spring - but no final decision has been made on how much they will increase.
Somerset Council is in detailed negotiations with central government as it moves to set its budget in late-February, with officers seeking a third consecutive year of exceptional financial support in order to close a £73m budget gap.
Conservative opposition leader Councillor Diogo Rodrigues claimed that the council had asked the government to let it increase council tax by "more than 20 per cent" last financial year, and had requested an increase of "around ten per cent" for the coming financial year.
Council leader Bill Revans responded that these were "illustrative figures" and no formal request for such an increase had been made.
Like other unitary authorities in England and Wales, Somerset Council legally cannot raise its council tax level by more than 4.99 per cent without staging an expensive referendum.
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Of this 4.99 per cent, two per cent is ring-fenced for spending on adult social care, while the other 2.49 per cent can be spent on any council services.
In 2024/25, the council was granted an exception by the Ministry for Housing, Communities and Local Government (MHCLG), allowing for a 7.49 per cent rise in bills.
Mr Rodrigues (who represents the Bridgwater East and Bawdrip division) alleged that the council had asked for a higher increase than this when the executive committee met in Taunton on Wednesday morning (January 7).
He said: "Last year this administration sought, and received, government permission to raise council tax by around 7.5 per cent, having originallyrequested an increase of more than 20 per cent.
"This year, members have been advised that balancing the budget again relies on council tax rises above the 4.99 per cent referendum limit.
"I have been informed that the council has approached the government about a council tax increase of around ten per cent for 2026/27.
"Can you confirm whether that figure is accurate, and if not, what is the maximum percentage increase that has been requested or discussed with government?"
The Labour government announced its local government financial settlement shortly before Christmas, providing all UK councils with an idea of how much grant funding they would receive for the 2026/27 financial year.
The three-year settlement will see Somerset Council's annual grant rise from £249m to £252m - a rise which Taunton and Wellington MP Gideon Amos described as "profoundly disappointing" in the wake of rising demand on services and the increasing costs of providing them to residents.
The remainder of the council's budget comes from council tax, some retention of business rates, income from commercial investments and, in recent years, the sale of land, property and other assets.
The latter sales form part of exceptional financial support (also known as a 'capitalisation directive'), whereby the government has allowed the council to use the proceeds of these sales to fund day-to-day services (which is not usually permitted).
The government's financial settlement is partially calculated on the basis of what an average (Band D) property would pay - with the average annual bill for unitary authorities being around £2,060.
However, Somerset's Band D bills are currently around £1,850 despite last year's steep rise in bills - a situation brought about by both a low council tax base (i.e. a lower than average number of Band D properties) and council tax being frozen by the Conservative-run Somerset County Council for six years in the 2010s.
Deputy leader Councillor Liz Leyshon (who represents the Street division) said that the council had put forward "illustrative figures" in both 2024 and 2025 for how much council tax would have to rise to bring Somerset Council in line with other unitary authorities.
She elaborated: "Last year we submitted illustrative figures on council tax increased from one per cent above the referendum limit [i5.99 per cent] to more than 20 per cent.
"That figure was an illustration for the government of what would be necessary to close the budget gap by council tax increases alone.
"This year, we have submitted an application for further exceptional financial support, up to but not exceeding the amount agreed by the government for 2024/25 and 2025/26 not required, and so rolled forward.
"That seems to me a perfectly reasonable approach - one that is on the right trajectory for setting a budget in 2027/28 without one-off monies, and one which does not require a new decision by MHCLG, but rather a reaffirmation.
"As with last year, we have submitted to the government illustrative figures of a council tax increase in excess of the referendum limit up to 5.9 per cent above the limit [i.e. a total rise of around 10.9 per cent], in order to reach that government average figure for a Band D property in a unitary area."
MHCLG will not confirm the level of exceptional financial support which the council will receive until a few days before the full council meets to set the annual budget in Bridgwater on February 27.
Council leader Bill Revans (who represents the North Petherton division) stressed that decisions with central government were still ongoing, and described Mr Rodrigues' comments as "unhelpful".
He said: "I would like to be very clear that, even though we did increase council tax above the referendum levels last year, we are still significantly less than the unitary average.
"We are still significantly less than our neighbouring councils in Dorset, Cornwall, Devon and Wiltshire, and that is because of the historic decisions made by legacy councils to freeze council tax from 2010 to 2016 - and that means we are a financial emergency of having to close that gap.
"Our finances do still remain fragile, and we are in discussions with central government around further exceptional financial support for this year.
"We have given illustrative figures [on council tax increases]. If the government would agreed to a 5.9 per cent increase above the referendum limit, that would bring us in line with the government's average of £2,060 a year for a Band D property when they calculated grant funding.
"That is not the same as a formal request to the government. We have not asked for that; we are in discussion and in negotiation.
"To misrepresent that is unhelpful, and I do have to question the motives of misleading people in that way.
"Any potential increase will be discussed and will be decided through our democratic processes. No decisions have been made, no formal requests have been yet made.
"We will continue to lobby the government on behalf of Somerset residents, we will continue to urge the government to accelerate the promise of council tax reform and social care reforms, and we appreciate the support of all seven of our MPs in doing so.
"This is not just about gaining a fair funding settlement for Somerset Council for this year, but also about looking at the broken model of financing local government, where we are still funding social care out of a tax on 1991 property values - that is the fundamental difficulty we all face.
"We can all chuck ammunition at each other if we need to, but that is the fundamental truth. This council has that financial gap, and we are doing our utmost to close it.
"We are still delivering services in the face of a fragile financial position, and I am incredibly proud of the work that our officers and division members are doing in incredibly difficult circumstances to keep a sustainable council for our residents, maximising the services that we present.
"It's absolutely essential that we deliver for the people of Somerset."
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