Somerset Council has this week agreed its budget for 2026/27, with Leader Cllr Bill Revans saying the authority is now shifting from a financial emergency into a “recovery phase” after a year of major cost‑cutting and restructuring.
Speaking at Wednesday’s Full Council meeting, Cllr Revans said independent assessments showed the council “has grasped the challenges” of its financial crisis and is now “on the right track” to stabilising its position.
Somerset Council agreed a 4.99% rise in its share of residents’ council tax bills – a £92 a year increase on a Band D property.
The opposition Conservative group leader Diogo Rodrigues said the Liberal Democrats were “not managing our money well” and the administration needed to “get its house in order”.
Council leadership says progress is being made
Cllr Revans told councillors the authority had taken “tough decisions” while protecting support for vulnerable residents and key frontline services. He said the council had avoided the need for Government‑appointed commissioners and could now focus on long‑term investment in Somerset’s economy, highlighting the Agratas project at the Gravity site and new investment at Leonardo in Yeovil.
“While we are still in a financially fragile position, we are now in a recovery phase, with the intention of delivering a balanced budget without exceptional financial support next year,” he said.
The council has reduced its projected funding gap from £101m in March 2025 to £25m in February 2026, despite the Government’s Fair Funding Review which it says has disadvantaged rural counties.
Council tax to rise by 4.99%
Councillors approved a 4.99% rise in Council Tax, taking the average Band D bill to £1,950.30 per year — an increase of £1.78 per week. Somerset Council says this remains lower than the average unitary authority and below neighbouring Dorset, Wiltshire and Cornwall.
To close the remaining £25m gap, the council will again rely on Exceptional Financial Support from Government in the form of a Capitalisation Direction, allowing it to spread day‑to‑day costs over several years through borrowing or asset sales.
The authority also plans to deliver further savings through its Inspiring Innovation Transformation Programme, which aims to invest £45m by 2031 to generate around £135m in long‑term savings.
Other spending commitments include up to £5m over three years to improve roads, pavements and cycleways, and an extra £2m for the Exceptional Hardship Fund to support low‑income households.
Conservatives say residents “feel misled”
Somerset Conservatives strongly criticised the budget, warning that residents are paying more while the council continues to rely on Government support for the third year running.
Opposition Leader Cllr Diogo Rodrigues said the council had failed to produce a genuinely balanced budget despite receiving a three‑year funding settlement and rising council tax income.
He said the authority expects to raise an extra £29m in council tax this year, leaving many residents asking what improvements they will see in return.
Cllr Rodrigues also questioned how the council’s projected £73m budget gap had fallen so quickly to £25m after its request for an 11% council tax rise was rejected by Government.
“Residents were told an 11 per cent increase might be needed and that without it there would be painful choices,” he said. “The Government blocked the rise and suddenly the books were balanced without it. It’s no wonder people tell me they feel misled.”
He also criticised the council’s use of asset sales to support day‑to‑day spending, pointing to the sale of the former Marks & Spencer building in Yeovil at a loss of almost £5m.
Concerns were also raised about the council’s performance on Special Educational Needs and Disabilities (SEND), with only £687,000 of £2.5m planned savings delivered so far.
Labour warns of “nothing fundamental changing”
Labour Group Leader Cllr Leigh Redman said the budget relied too heavily on one‑off measures and exceptional support, warning that the council was still failing to address its underlying financial problems.
He said staff shortages, rising workloads and service pressures were leaving residents frustrated and services stretched.
“This approach does not address the underlying financial challenges and risks storing up further problems for the future,” he said.
All budget documents can be viewed on Somerset Council’s website.
