Image
Councillors received an update on both revenue and capital budget spend, which highlighted £4.495m of pressures. The council had planned to spend £245.357m in 2025/26 (net revenue budget) but its current forecast stands at £249.852m.
Cabinet also heard the external findings from the Chartered Institute of Public Finance and Accountancy (CIPFA) who undertook an independent Financial Resilience Review. It assessed the robustness and sustainability of the council’s financial position in the medium to long term.
The report recommended the Council continue to build on its strengths including strong in-year budgetary discipline and treasury performance. It concluded the Council’s future sustainability will depend on delivering complex transformation at scale, rebuilding its reserves along with embedding integrated planning across services and finances.
Like many councils across the country, due to increasing demand and costs, the largest areas of spending pressures are care-related services who support adults and children who are most in need.
The council has a legal obligation to support over 2,500 adults across North Somerset (including young adults) - all of whom have different assessed needs and tailored packages of care. Some are looked after at home whilst others have supported housing or care provided in a residential or nursing setting.
The council is also a ‘corporate parent’ to approximately 280 children in care. Increasing costs and demand for residential accommodation, supporting children with disabilities as well as home to school transport places have all led to budget pressures.
The council has a statutory duty to balance its budget. Cabinet Members heard a number of measures are being taken across all areas of council spend to help close the budget gap.
One of the areas being progressed is to develop a council-wide transformation programme focusing on how the council can deliver services effectively and efficiently but differently, whilst improving resident satisfaction and providing value for money.
Cllr Mike Bell, Leader of North Somerset Council, said: “We are proud to be a council who cares and will always focus our resources to look after children, young people and adults most in need. Adult and children services accounts for close to two pounds in every three we spend as a council. I’d personally like to thank all our staff, carers, communities and volunteers who help us in supporting so many.
“However, the scale of demand for our care related services continues to increase putting real pressure on our budgets. We’re also seeing increasing financial pressure on other services due to ever rising demand and costs. We continue to take decisive and collective action, including a council-wide transformation programme, to ensure we can continue to provide essential statutory services that so many of our residents rely on.”
More information has also recently been released in relation to the governments’ plans to fundamentally reform and update how councils in England will be funded in the future.
At the end of June, the government published a consultation paper which shared some details about the changes that could be made. The proposals as they stand will reduce the core funding to residents of North Somerset by £17.4m. This planned reduction in funding could be implemented as soon as 2026/27.
Councillor Bell added: “The impact of these grant reductions would be devastating. Fewer resources mean fewer services, deeper cuts, and a weaker safety net for the most vulnerable in our community. We need change that works for all councils, not a system that redistributes inequality. We need a funding model that protects communities, supports stability, and gives councils the tools to deliver.
“We have made our views known to government and asked our three local MPs to support us. The call to action is clear: the government must rethink these proposals, listen to local authorities, and deliver a fair system that builds strong communities.”
A more detailed report on the council’s budget (medium term financial planning) is set to be discussed by councillors in October.
For more information, read the Cabinet report at: Committee Report NSC