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The government published its provisional local government finance settlement for 2025/2026 yesterday which sets out how it proposes to distribute core funding to local councils.
The initial headlines show the council’s finances will be marginally better overall in the short term, reducing the council’s current budget deficit which was expected to be £2.5 million for 2025/26 and £7.3 million over three years.
The council will now review all one-off resources, some of which has already been built into the budget for next year, with the aim of delivering a balanced position in 2025/26. However, one-off resources are not a sustainable funding solution for the longer-term.
Leader of North Somerset Council, Cllr Mike Bell said: “We welcome the additional grant funding set out in yesterday’s local government settlement, but it’s not enough to solve England’s local government funding crisis and it’s not enough to avoid impossible choices needing to be made.
“What we gain from the 2025-26 government settlement doesn’t solve the continuing escalating costs in adult and children’s social care. Even after we allow for the additional funding, we still have a budget gap and we still have to progress with our difficult and challenging proposed £45.8 million savings plans.
“We know the government is listening and understands the pressure on services around the country. We welcome the government’s commitment to starting a consultation on reform and a new funding model, but this isn’t going to be quick enough for communities up and down the country who still face cuts to their vital services and for councils who face huge budget gaps.
“The current funding formula for local government is broken. North Somerset Council has the second lowest council tax rate in the South West, which limits our ability to generate additional income. Our residents are paying less than those in Bath, Bristol, South Gloucestershire and Somerset. But that has consequences for services and means we receive £9.1 million less per year in council tax than our 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 we lose out on £50 million per year compared to other areas. All councils are in a challenging position, but North Somerset is locked into a cycle of historic underfunding that is leaving us further and further behind.”
Since 2010, the council has delivered more than £195 million in service efficiencies and savings, but the higher need for services, especially for vulnerable children and adults, and the cost of providing them has continued to increase.
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 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.
The final government settlement is expected in late January. The council will consider detailed budget proposals at a meeting of its Executive on Wednesday 5 February 2025.
The final budget and council tax levels for the year ahead is expected to be agreed at a meeting of the Full Council on Tuesday 18 February 2025.