Somerset Council has given a cautious welcome to the Government’s new three‑year Local Government Finance Settlement, while warning that the current funding model continues to place too much pressure on local taxpayers.
Council Leader Cllr Bill Revans said the authority expects to see around a 13% increase in its Core Spending Power over the next three years, following last week’s provisional settlement announcement. Core Spending Power is the revenue available to councils through the national finance settlement.
However, the council says that around 97% of that increase is expected to come from Council Tax, meaning local residents will shoulder the vast majority of the uplift. It also appears Somerset will receive significantly less income from business rates than previously forecast.
When all elements of the settlement are taken into account, the council expects to be only “marginally better off” next year, and further detailed modelling is now underway.
While the three‑year settlement gives the authority more certainty for planning future budgets, Somerset Council says it still faces major financial pressures in areas such as children’s services, placement costs and homelessness. The council will continue to work towards delivering a balanced budget for 2026/27, including submitting a request to Government for further Exceptional Financial Support (EFS).
Cllr Revans said: “We have worked hard and had to make tough decisions to deliver savings, guided by feedback from residents, businesses and partners, while protecting vital services.
“While the three‑year settlement contains some welcome news and allows us to plan with more certainty for 2026–29, we maintain our view that the current funding model is broken. Relying on increased Council Tax to fund essential, demand‑led services such as adult and children’s care is not sustainable.”
He added that a fairer, long‑term funding system is needed to reflect the pressures councils face and the essential work carried out by staff across Somerset.
Residents are now being invited to take part in the council’s Budget Consultation, which will help shape decisions ahead of the budget being set in February 2026.
Somerset Council’s Budget Consultation survey, due to close on 14 January, can be completed online. Paper copies are available in Somerset libraries.
