Somerset Council exec agrees plans to bridge £100m budget gap
The local authority is facing a financial emergency - and their resent proposals to increase their council tax share by 10% were rejected by the Government
Somerset Council's executive is looking to protect key services amid the proposed budget coming later this month.
It comes as they look to reduce the impact of the 'heart-breaking' and 'unprecedented' decisions they'll have to make because of the financial emergency, declared last year.
They've agreed plans to bridge a £100 million gap for the 2024/25 financial year - however, they say the Government's refusal to increase their share of council tax by 9.99% 'undermines' their 'immediate sustainability' after next April.
Councillor Bill Revans has thanked City, Town and Parish councils for stepping-up to keep providing things like CCTV and the Yeovil Recreation Ground open.
Other protected services include the Taunton Visitor Information Centre, the Ranger Service in the south, and locking parks in Wellington, Minehead and Taunton overnight.
Talks with Somerset’s waste contractor will continue before any savings linked to closing household waste recycling centres are taken forward.
The Council's Executive has also passed amendments to withdraw or change a number of savings proposals to allow alternative funding models to be explored, including savings linked to highways maintenance, RNLI lifeguard provision, school crossing patrols, and savings linked to important democratic functions, such as Scrutiny committees.
Cllr Bill Revans, Leader of Somerset Council, said: “It is clear the current model of funding local government is broken, and this means we have had to consider heart-breaking and unpalatable cuts to services we greatly value but simply cannot afford.
“We vowed to do everything in our power to find alternative ways of funding these and I have to thank our city, town and parish councils for the way they have stepped up. We will continue to explore all options to minimise the impacts on our communities.”
Executive also heard confirmation that the Council’s request to increase Council Tax by more than 5% has been rejected by Government, while they are still considering the request for a capitalisation direction – where the council is allowed to borrow money or sell assets to pay for day-to-day running costs.
Cllr Revans added: “This is a disappointing decision which will impact on the long-term viability of our council. While no-one wanted to raise council tax, it was the only option we had to address a broken system where our costs are rising faster than our income. We have been prepared to take difficult decisions locally to minimise the impact on our communities – however, we are now reliant on the Government granting a capitalisation direction. This would be another short-term measure and is not the long-term solution which is urgently needed.”
Executive voted in support of proposals to balance the budget by making significant savings (with amendments noted), increasing Council Tax by the maximum allowed, selling council assets, and using reserves (a council’s equivalent of savings). It also relies on the Government approving the capitalisation direction.
Looking past the next financial year, though, its said that the council needs to go through a 'transformation programme' to 'create a leaner, more productive organisation - as some of the funds they're looking to use now won't be there next year because reserves and capital funds can only be used once.
They say the aim will be to keep the number of compulsory redundancies to a minimum by removing vacant posts, reducing the number of agency workers, interims and consultants, and by opening a voluntary redundancy scheme.
The proposals to set a balanced budget will now be considered by Full Council on 20 February.