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Cabinet heard today (Wednesday 15 October) that the financial pressures facing local government continue to intensify. North Somerset now faces a forecast budget gap of £25.9 million for 2026/27, an increase of £13.7m since February 2025.
During the last three months alone, the council has seen a £911,000 increase in adult social care due to increasing demand and more complex needs, including support for a growing number of younger adults. Spending on children’s social care has increased by a further £243,000 as the council continues to provide safe homes and specialist care for children in or on the edge of care.
Over the next three years, the council must deliver £40million in savings simply to balance its books.
These pressures are not unique. The Local Government Association notes councils collectively face an £8.4billion funding gap by 2028/29 and one in six social care authorities now rely on the government’s ‘Exceptional Financial Support’ simply to set a balanced budget.
Cllr Mike Bell, Leader of North Somerset Council said: “Exceptional support is no longer exceptional, it’s a lifeline many councils now need just to survive. We run a tight ship in North Somerset, and independent reviewers have confirmed we manage our finances well. But when demand for adult and children’s care keeps rising and government funding keeps falling, even well-run councils face impossible choices. Without reform and fair funding, local services people depend on will suffer.”
Government proposals published in June would cut North Somerset’s core funding by nearly 20 per cent. That’s £17.4 million less for local services, from social care to community safety.
In a letter addressed to The Right Hon Rachel Reeves MP, Chancellor of the Exchequer, issued this week (14 October), Cllr Bell responded to the government’s budget consultation.
The council’s response set out five areas where national reform and local flexibility must go hand in hand.
- Reform and devolution of local taxation
- Stabilise adult social care and invest in prevention
- Address structural deficits and unfunded mandates
- Enable long-term stability and reform of the funding system
- Empower councils as partners in growth, devolution and reform
Cllr Bell stated local government ‘stands ready to deliver your priorities – economic growth, thriving communities, better life chances for children and a fairer society’ – but only if councils are financial sustainable and empowered to raise and manage resources locally.
To read the letter in full, please visit: Leader writes to Chancellor letter. pdf
Cllr Bell continued: “We urge the government to act on our recommendations. Without national reform, local flexibility and fair funding, we will be forced to make decisions that harm residents and weaken communities.
“We have already delivered millions in savings and continue to transform our services, but no amount of efficiency can fill a £17.4 million hole. Our council tax base is historically low, limiting our ability to raise funds, and government capping rules restrict what we can do.
“A Band D household in North Somerset pays £1,793.75 in council tax compared to £2,200.26 in Bristol. That difference represents real limits on what we can provide, despite the same expectations from residents.
“Local government is ready to be part of the solution. What we need is a fair deal that recognises our responsibilities and gives us the freedom to invest in our people, our places and our future.”
To read the Cabinet budget papers in full, please visit: Committee Report NSC and Committee Report NSC.