North Somerset Council raises council tax 4.99% and uses savings amid funding concerns. Councillor warns of impending financial issues.
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The council voted on the budget in February. Taxes will increase by 4.99%. This is the highest amount allowed, coupled with some services getting cut. One councillor said cuts would be very severe, given they had to close a £53 million budget gap. Cuts and savings reduced it to £10 million.
Mike Bell leads the council. He said using savings was necessary, blaming a lack of government funding, coupled with a lack of financial help and tax flexibility. Bell said this was the only option to balance the budget for the year 2025/26.
Ash Cartman is an independent councillor. He said they had £20 to £25 million in savings. He warned they would spend £9 million next year, comparing the situation to a ship nearing rocks.
Conservative councillor Michael Pryke asked Bell a question. What happens when the money is gone? He felt they lived budget to budget each year. Bell said they have enough money for now and a solid budget. There’s a plan for the future. If things get dire, they’ll ask the government for help, believing they can avoid that scenario.
A Section 114 notice means near bankruptcy for a council. The government then takes over the finances. It occurs when a council cannot balance its budget, having only happened 14 times before, ten times since 2020. The finance officer issues the notice.
Bell said social care demands caused issues. He said they lose £50 million yearly, due to reduced government funding, furthermore, a lower tax base hurts them. The council cut its magazine and froze pay for councillors. They might close some libraries to save money, although this would not happen next year.
Council tax will increase by 4.99%, about £85 extra yearly, or £1.64 per week for an average home. Two percent will go to adult social care, which helps with rising social care costs. Bell stated that social care costs put pressure on their budget, and about £25 million extra was needed currently. It will be an issue in future years, so he wants the government to reform care funding.
The council will provide more social services themselves. This avoids high costs from outside providers, something Bell said took them too long to address. Conservative leader Nigel Ashton sympathized with Bell, stating no government fully supports them and he thinks they will continue to reduce their funds. Councillors approved the budget with 30 votes for it and 14 abstentions.