Council Tax Decision Explained
Somerset Council Leader Bill Revans has reiterated calls for expedited reform of local government funding by the Government, as councillors voted on a balanced budget for the 2025-26 fiscal year during the Full Council meeting on March 5th.
As part of the budget proposal, the Government has authorised Somerset Council to increase Council Tax by 2.5% above the usual 5% cap, acknowledging the Council’s unique situation.
Somerset’s Council Tax levels are below the national average, a situation exacerbated by the previous (Conservative) ruling group’s six-year freeze on Council Tax. Somerset is also the largest unitary authority in the country, impacting service delivery costs.
Around 66% of Council Tax revenue is allocated to Social Care and Children’s Services, sectors experiencing increasing demand and rising costs.
Acknowledging the financial strain many residents face due to rising inflation and utility costs, the Liberal Democrat-led Somerset Council chose to maintain support for the Council Tax assistance scheme.
Somerset’s financial difficulties are part of a national problem. One in four councils in England say they are likely to apply for emergency government bailout agreements to stave off bankruptcy in the next two financial years (2025/26 and 2026/27), according to a stark survey by the LGA.
The opposition parties at Somerset Council offered no alternatives and voted against the budget. Not supporting the budget could have resulted in a section 114 notice for Somerset Council, leading to a double-digit Council Tax rise, a sell-off of more assets, halting essential capital projects, and cuts to frontline services. In this scenario, Government commissioners would run the Council, leaving local people with very little say on decisions affecting their lives.
Despite current challenges, Somerset’s Council Tax remains lower than that of Wiltshire, Dorset, and Cornwall. Following a resident consultation, 52% of respondents supported an increase in Council Tax to match the national average to protect essential services.
Established in April 2023, the new Unitary Authority for Somerset has balanced its budget every year since its formation while declaring a financial emergency and calling for local government finance reform.
If you need help, please see below:
- Apply for a reduction in your Council Tax bill here: Claim Council Tax Reduction
- Apply to the Council’s Hardship Fund here: Claim a Discretionary Award
Financial documents, including Revenue and Capital Budgets and the Medium Term Financial Strategy from 2025-26 to 2029-30, can be found online at: Somerset Council Budgets. More information about Council Tax and what it covers can be found here: Council Tax Explained.