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Just before Christmas, the council received its provisional funding settlement from government. The figures show North Somerset could lose £18.6 million, and the council estimates the changes could remove more than £30 million from local services over the next three years.
A key issue is the way government builds council tax into the funding formula.
In its calculations, government assumes every council can raise the same “notional” (assumed) amount of council tax, based on a national average Band D figure.
For North Somerset, that assumed figure is £2,061 for a Band D property. In reality, North Somerset Council’s current Band D charge (including the adult social care precept) is £1,794. That gap means the council is treated as if it has more income than it actually does, which reduces the funding it receives and piles more pressure onto council tax.
In a letter to the Prime Minister, council Leader Cllr Mike Bell is asking government to act now, including by:
- removing the notional national council tax figure from the funding formula, or allowing councils to raise council tax beyond current limits
- protecting and increasing ringfenced funding for adult social care
- using relevant, up-to-date data in the calculations
- providing a recovery grant or guarantee to reflect the extra needs of North Somerset’s most deprived communities
Cllr Bell said:
“This settlement doesn’t just cut funding, it bakes in an assumption that councils like ours can raise more from council tax than we actually do.
“Government is effectively treating North Somerset as if we already charge £2,061 for Band D, when our charge is £1,794. That gap is then used to justify taking money away. The result is simple: less funding from government, and forcing local council tax up.
“We are doing everything we can to set a sustainable budget and protect the services people rely on. We are pressing ahead with transformation and efficiency, and we have already identified £16 million in savings for next year. Even after that, we are forecasting a £15 million gap, and we expect that to rise to £42 million in the following years.
“Nearly £2 in every £3 we spend already goes on adult and children’s social care. These are services we are legally obliged to provide, as laid down by Parliament, but which government does not fund. That leaves very little for everything else. Without urgent action from government, it will become harder to protect essential services.”
The letter to the Prime Minister is available to read on the council’s website: https://n-somerset.gov.uk/lettertopm.
The council will continue to prepare its budget for the year ahead. Final proposals will be considered by Full Council on Tuesday 24 February 2026. This is one week later than originally planned to allow more time for a response from government on the council’s request for council tax flexibility, and further work on the funding calculations.