NUMEROUS major regeneration schemes designed to revamp Somerset, including a £825,000 investment in Frome Enterprise Centre, have been protected, as Somerset Council passed its capital budget for the coming year.
Every local authority in England and Wales sets two different budgets: the revenue budget (which covers day-to-day spending on front-line services) and the capital budget (which provides money for new schools, roads and other infrastructure).
As well as a number of major regeneration programmes taking place in Bridgwater, Glastonbury and Taunton, there will be a series of smaller-scale schemes, all of which are externally funded, including upgrading Frome Enterprise Centre, which comprises 16 light industrial units, at a cost of £825,000.
Somerset Council managed to stave off effective bankruptcy for a little longer when it passed its revenue budget in Bridgwater on Tuesday 20th February, with a £100m budget gap being plugged through council tax rises, selling off assets, implementing £35m in savings and raiding reserves.
But the council has also ensured that numerous major capital schemes, funded largely by external grants, will still move forward in spite of its wider financial difficulties.
While the revenue budget is funded predominantly through council tax and income from other services (such as car parking, planning fees and similar charge), the capital programme is mainly funded from central government grants, contributions from housing developers and external borrowing.
After declaring a financial emergency in November 2023, the council has been reviewing its capital programme, removing schemes which were only funded by external borrowing in order to reduce its repayments in light of high interest rates.
Any schemes which are fully funded by government grants and/ or development contributions will be allowed to proceed – with more than £258m being committed up to April 2027.
