Somerset Council approves 7.49% tax hike amid financial crisis

Somerset Council has approved a 7.49% increase in council tax for the 2025-26 budget, exceeding the legally permitted limit of 4.99%. This decision comes amid a £52.2 million budget gap, prompting the council to rely on Exceptional Financial Support from the government for the second consecutive year. Council leader Bill Revans emphasized that the increase will reduce the gap by approximately £9.2 million, but the remaining £43 million will need to be covered through capitalisation measures, such as selling assets or borrowing funds. The tax hike means residents in band D properties will pay an extra £129 annually. Despite the increase, the council is also implementing significant cuts, including laying off over 550 staff and introducing new parking charges. Revans warned that the funding model for local government is broken and urgent reform is needed to address ongoing financial pressures, particularly in social care and special educational needs.