Burnham-On-Sea MP Ashley Fox has spoken out after the Government confirmed it is “minded to” grant Somerset Council £30million in Exceptional Financial Support while raising concerns about the authority’s financial management.
Local Government Minister Alison McGovern has written to the council outlining issues including the slow pace of its transformation plans, repeated requests to reprofile previously agreed support, and warnings from external auditors, who have issued statutory recommendations.
The Minister also confirmed that the Department will now move quickly to carry out an external assurance review, placing Somerset Council’s recovery plans under close scrutiny and assessing whether further intervention is required.
Ashley Fox MP said he welcomed the Government’s decision to step in.
“I welcome the fact that the Minister has recognised these specific risks and is taking action,” he says.
“Council taxpayers in Somerset deserve competent financial management which they have not been getting from the Liberal Democrats.
“Families across Bridgwater, Burnham-On-Sea and the wider county are working hard and managing their own budgets carefully. They expect their council to do the same.
Cllr Bill Revans, Somerset Council Leader, said: “This confirmation is welcome but it’s important to note that EFS is not a bailout or extra funding.”
“In fact, as we’ve previously highlighted, Somerset recently lost around £21m each year as a result of the recent so-called fair funding review which removed support for councils delivering services in rural areas, even though these usually cost substantially more to deliver.”
“We continue to receive less income from Government due to the way grants are calculated based on the average council tax bill – and we will receive nothing from the Government’s £1bn recovery grant.”
“We have taken a number of decisive actions ourselves to protect frontline services while also avoiding the threat of a S114 notice. However, it is clear the funding system for local councils is broken and we urgently need a better way to pay for demand-led services like social care.”
“We welcome further scrutiny of our finances, and I would recommend anyone seeking to understand the historic causes of our financial situation to read the CIPFA report that is very clear on the cause of the financial issues Somerset Council faces being the reckless freezing of council tax for six years by Somerset County Council.”
The Government’s review is expected to begin shortly, with further updates to follow once the external assurance work is completed.
