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During the last Council Executive meeting in December, councillors heard North Somerset Council faced a £2.5m budget gap for 2025-26 and a £7.3 million forecast gap over three years.
The government has since published its draft local government finance settlement for 2025/2026 which sets out how it proposes to distribute core funding to local councils. It included some welcome measures and targeted funding for Special Educational Needs and Disabilities services and social care but didn’t deliver the fairer deal North Somerset Council needs.
The Council was also disappointed not to receive any recovery grant, particularly as this funding is intended to support councils who like North Somerset Council have high spending pressures and low tax bases.
Leader Cllr Mike Bell said: “Significant work has been undertaken to reduce the budget gap, including using £15m of one-off reserves, and I’d like to thank everyone who has supported us on this challenging journey.
“We are disappointed that the draft government settlement has not closed the financial gap for 2025/26. Also, due to continuing increasing demand and rising costs, the council’s longer-term landscape has worsened. The gap over the council’s three years Medium Term Financial Plan now stands at £8million - a £700K increase since last reported in December. We are continuing to work hard to balance the budget and reduce the deficit. This is why we will need to press on with our programme of efficiencies and savings, introduce service reductions and look to generate more income.”
North Somerset Council is now looking to the government’s spending review, the promised consultation on reform of local government funding and the move to three-year settlements to offer long term sustainable funding.
Cllr Bell added: “These are actions that cannot come soon enough and are vital in delivering fairer funding and a fair deal that North Somerset Council needs and deserves. We lose out on £50m every year compared to our neighbours due to unfair funding formula. This needs to change.”
North Somerset Council has the second lowest council tax rate in the South West, which limits its ability to generate additional income. Residents are paying less council tax than those in Bath, Bristol, South Gloucestershire and Somerset, but this means the council receives £9.1 million less per year in council tax than neighbours.
The amount of core funding the council receives from the government is £2,127 per household. This is £414 a year less than the England average. This equates to £41 million per year less in North Somerset than the average community.
In total, that means North Somerset Council loses out on £50 million per year compared to other areas.
North Somerset Council wants to see local government nationally get a better deal and greater support which is why they’ve launched a Fair Deal petition calling on the government to provide a ‘fair deal’ to the people of North Somerset. This petition will be handed to central government.
Please sign our petition at www.n-somerset.gov.uk/fairdeal if you feel the people of North Somerset deserve a fair deal and share this petition link with others.