At Wednesday’s budget-setting full council, I shared that Somerset Council is transitioning from a financial emergency to a financial recovery phase following the approval of its 2026/27 budget, writes Cllr Bill Revans.
During the meeting, I referred to reports from the Local Government Association and the Chartered Institute of Public Finance Accountancy, and also comments from our chief auditor and our chief financial officer, indicating that the council has firmly grasped its budget and is on the right path.
Experts agree: this council has effectively tackled the challenges of the financial emergency.
We have made difficult decisions, prioritising care for the most vulnerable and essential services, collaborating with our business community, city, town, and parish councils, the health service, police, other public sector organizations, and the Voluntary sector – and we will continue these partnerships.
We have cut our projected funding gap from £101m in March 2025 to £25m in February 2026.
That is a huge achievement.
We have honoured our commitment to solve these problems internally, rather than relying on costly central-government-appointed commissioners.
A Section 114, as we have seen in Birmingham, leads to double-digit council tax rises, services slashed, assets sold off in a fire sale and industrial disputes; we have all seen the pictures of refuse piled up on the streets after a long strike.
Alarmingly, the Conservative opposition proposed a budget amendment which the chief finance officer told them would lead to a Section 114 bankruptcy notice.
Totally irresponsible.
Consequently, we remain in control of our future, enabling us to invest long-term in projects like the Agratas investment at the Gravity site and Leonardo’s investment in Yeovil.
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Our goal is to build a prosperous and sustainable economy in Somerset.
While our finances are still fragile, we are now focused on recovery, aiming to deliver a balanced budget next year without exceptional financial support.
We are progressing well.
The council approved a 4.99 per cent increase in council tax, raising the average Band D bill to £1,950.30 per year (a weekly increase of £1.78).
This remains below the average for unitary councils and lower than neighbouring Dorset, Wiltshire, and Cornwall.
To close the remaining £25m gap for 2026/27, Somerset Council will use a final year of exceptional financial support from the government, through a capitalisation direction (allowing councils to fund day-to-day spending via borrowing or asset sales).
Additionally, we aim to achieve further savings by transforming service delivery, aiming for better outcomes at reduced costs.
The Inspiring Innovation Transformation Programme will see £45m invested by 2031, expecting a 3:1 savings-to-investment ratio and savings of around £135m.
Furthermore, up to £5m will be allocated over the next three years to improve Somerset’s roads, pavements, and cycleways, while an extra £2m will be added to the Exceptional Hardship Fund to support low-income households.
The council will also continue increasing budgets to address rising demands and costs for adult and children’s services.
Experts agree: we are on the right track.
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