Somerset Council faces ‘lingering death’ over £73m budget gap

By Local Democracy Reporter Daniel Mumby

Somerset Council is facing a ‘lingering death’ in the face of an estimated £73m budget gap, councillors and auditors have warned.

The council recently launched a consultation on its initial budget proposals, including just over £20m of new savings or increases in its existing fees and charges.

Clive Heaphy, the council’s interim chief financial officer, had previously admitted that the authority would require exceptional financial support from the government for a third consecutive year in order to balance its books without totally exhausting its reserves.

But members of the council’s audit committee have warned that the council may have left it too late to turn things around – making effective bankruptcy increasingly likely.

This comes after external auditors Grant Thornton warned that the council had to go faster to change the way it delivered services, issuing three statutory recommendations or ‘red cards’ against the authority.

The council saved around £34m in the first phase of its transformation programme, which concluded in April with the loss of around 300 staff.

Two of the three ‘red cards’ regarded concerns regarding financial stability which had first been raised in 2024/25 – with the third and newest relating to the ill-fated Life Factory project within the Glastonbury town deal.

Clive Heaphy, the council’s interim chief financial officer, said that the council was making progress, reducing its projected in-year overspend (i.e. for the 2024/25 financial year) down to under £1m.

He said: “Moving from local government reorganisation to a balanced position is never easy for any council, and this situation is no different.

“We’re working very hard, and we are focusing efforts to move towards a balanced budget.

“We are trying to reduce our dependence on exceptional financial support – nobody likes it. It’s like putting the food bill every week on the mortgate – it’s not something you should be doing.”

In order to close the remaining budget gap, the council will need confirmation from the Ministry for Housing, Communities and Local Government (MHCLG) over its funding settlement – that is, how much grant funding it will receive in the coming financial year.

Councillor Gwilym Wren (Independent, Upper Tone) said the council was “staring down the barrel” of effective bankruptcy and criticised the lack of urgency on the officers’ part to address the problem.

“It’s fairly clear that we’re going to have exceptional financial support for next year,” said Councillor Wren. “The communities budget has effectively been hollowed out – there’s nothing left.

“There is continuing pressure on children’s services and adult services, and our ability to close the gap just don’t seem to be there. It feels like a lingering death – we’re gradually sinking.

“We’ve had so many staff losses, I’m beginning to question our ability to mange our way out of this situation.”

Residents can give their views on the council’s budget proposals by visiting www.somersetcouncil.citizenspace.com/comms/budget-consultation-2026-2027 before 14th January. Hard copies are available in all Somerset libraries.

The budget proposals are being discussed in detail by the council’s various scrutiny committees in December and into January 2026, before the final decisions are taken by the executive and full council by late-February.

Council leader Bill Revans said: “We have made savings of at least £50m since becoming a single council, but our finances remain fragile with costs and demand for essential services continuing to rise.

“We are taking action to reduce spending and have saved millions – including by reducing our pay bill by £33m last year. This was an area our residents asked us to look at in previous budget consultations.

“We have a clear long-term plan focused on tough decisions, innovation and partnerships, but we need to ensure we are listening to the views of our residents and businesses.

“Please take part in our budget consultation and let us know what matters to you.”

Pictured: Cllr Bill Revans, leader of Somerset Council. Credit: South West Councils.