Lib Dem controlled Somerset Council passed it’s final budget before election year in 2027. Each year the Council has struggled to keep it’s head above water with the Unitary changes and the legacy left to them by the outgoing Conservative County Council but this year Lib Dem Leader Bill Revans says Somerset Council is moving from financial emergency into a financial recovery phase as Councillors met to approve its budget for 2026/27 saying there were “..clear signs the council had a grip on its budget and is on the right track” and that “..the council has grasped the challenges of the financial emergency“. The budget was passed 56 votes to 34 with Labour, Greens, Tories and Reform councillors voting against and the Lib Dems and Independents voting for.
Labour Opposition
Leader of Somerset Labour Group Cllr Leigh Redman (Labour, Bridgwater North & Central) summed up the opposition “Having reviewed Somerset’s extensive budget papers before us today, my group is concerned that, despite the rhetoric, nothing fundamental has changed from last year.
Once again, the Council is being propped up by exceptional financial support, one‑off measures, and a transformation programme that has yet to deliver the early, meaningful change needed to put Somerset on a sustainable footing.
At the same time, we continue to cut services that our communities rely on, increase council tax, and sell off assets, while still failing to meet transformation expectations. This approach does not address the underlying financial challenges and risks storing up further problems for the future.
We are also seeing the consequences for our workforce. Staff are leaving, vacancies are being held open, and remaining colleagues are under increasing pressure, often unable to meet the expectations placed on them. This inevitably leads to frustration for residents when services are simply not there, and it is not a sustainable way to run vital local services.
We do want to acknowledge the hard work of officers and the lead member in bringing these proposals forward under extremely difficult circumstances. However, for the reasons set out, we regret that we are unable to support this budget as a whole.”
Lib Dem Defence
Cllr Bill Revans (Lib Dem, North Petherton) defended the budget saying “We have taken the tough decisions needed whilst prioritising care for the most vulnerable and front line services, working in partnership with our business community, City, Town and Parish Councils, the health service, the police and other public sector organisations as well as the VCSFE sector – and we will continue to do so.
“We have stood by our assurances that we will tackle these problems ourselves, rather than look to expensive commissioners appointed by central government.
“As a result we remain in charge of our own fate, which means we can commit resources to long term investment into our area, such as the Agratas investment at the Gravity site and the incredible news of the investment into Leonardo at Yeovil.
“Prosperity pays for all and we are determined to build a flourishing sustainable economy in Somerset.
“While we are still in a financially fragile position, we are now in a recovery phase, with the intention of delivering a balanced budget without exceptional financial support next year. We are on the right track.”
Outcome
Councillors heard how Somerset Council has taken steps to significantly reduce its projected funding gap in the last year from £101m in March 2025 to £25m in February 2026.
This despite the Government’s recent Fair Funding Review which has negatively impacted on funding for rural counties like Somerset.
Councillors agreed to increase Council Tax by 4.99%, meaning the average Band D bill will rise to £1,950.30 per year (an increase of £1.78 per week). This figure remains lower than the average unitary council, and less than neighbours in Dorset, Wiltshire and Cornwall.
To close the remaining £25m gap for 2026/27, Somerset Council will again use Exceptional Financial Support (EFS) from Government in the form of a Capitalisation Direction (this allows councils to pay for day-to-day spending over a number of years funded by additional borrowing or selling assets).
However, the Council also plans to find further savings through transformation – that means delivering services in different ways to provide better outcomes for residents at a lower cost. £45m is due to be invested under the Inspiring Innovation Transformation Programme by 2031, with an expected 3:1 savings-to-investment ratio leading to savings of around £135m.
Meanwhile, there are plans to spend up to £5m over the next three years to smarten up Somerset’s roads, pavements and cycleways and an additional £2m will be allocated to the Exceptional Hardship Fund to ensure adequate support for those households with the lowest income. The council will continue to increase its budgets in response to rising demand and costs for adults and children’s services.
You can see all the budget papers on the council’s website at https://democracy.somerset.gov.uk/ieListDocuments.aspx?CId=214&MId=7600&Ver=4.