Leader Bill Revans says Somerset Council is moving from financial emergency into a financial recovery phase as Councillors met to approve its budget for 2026/27.
Speaking at today’s meeting of Full Council, Cllr Revans highlighted comments from several independent reports as clear signs the Council had a grip on its budget and is on the right track.
He said:
Experts agree that this council has grasped the challenges of the financial emergency.
We have taken the tough decisions needed whilst prioritising care for the most vulnerable and front line services, working in partnership with our business community, City, Town and Parish Councils, the health service, the police and other public sector organisations as well as the VCSFE sector – and we will continue to do so.
We have stood by our assurances that we will tackle these problems ourselves, rather than look to expensive commissioners appointed by central government.
As a result we remain in charge of our own fate, which means we can commit resources to long term investment into our area, such as the Agratas investment at the Gravity site and the incredible news of the investment into Leonardo at Yeovil.
Prosperity pays for all and we are determined to build a flourishing sustainable economy in Somerset.
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. We are on the right track.
Councillors heard how Somerset Council has taken steps to significantly reduce its projected funding gap in the last year from £101m in March 2025 to £25m in February 2026.
This despite the Government’s recent Fair Funding Review which has negatively impacted on funding for rural counties like Somerset.
Councillors agreed to increase Council Tax by 4.99%, meaning the average Band D bill will rise to £1,950.30 per year (an increase of £1.78 per week). This figure remains lower than the average unitary council, and less than neighbours in Dorset, Wiltshire and Cornwall.
To close the remaining £25m gap for 2026/27, Somerset Council will again use Exceptional Financial Support (EFS) from Government in the form of a Capitalisation Direction (this allows councils to pay for day-to-day spending over a number of years funded by additional borrowing or selling assets).
However, the Council also plans to find further savings through transformation – that means delivering services in different ways to provide better outcomes for residents at a lower cost. £45m is due to be invested under the Inspiring Innovation Transformation Programme by 2031, with an expected 3:1 savings-to-investment ratio leading to savings of around £135m.
Meanwhile, there are plans to spend up to £5m over the next 3 years to smarten up Somerset’s roads, pavements and cycleways and an additional £2m will be allocated to the Exceptional Hardship Fund to ensure adequate support for those households with the lowest income. The Council will continue to increase its budgets in response to rising demand and costs for adults and children’s services.
You can see all the budget papers on the Council’s Agenda and decisions page for the Budget Setting Meeting.
