Council Tax Rises Now Unavoidable to Protect Essential Services, North Somerset

North Somerset Council has warned that council tax will almost certainly need to rise above the usual government cap next year to protect essential local services amid unprecedented financial pressure.

At a Cabinet meeting, Council Leader Cllr Mike Bell outlined the stark reality facing the authority, driven by historically low council tax levels, long-term reductions in national funding and rapidly rising demand for services such as adult social care, children’s services and homelessness support.

“For years, North Somerset has had one of the lowest levels of council tax in the region,” said Cllr Bell. “That might have sounded attractive at the time, but it has meant less money coming in every year to fund local services. When you add in proposed changes to the funding formula and rising demand, the gap between what we can raise and what it costs to provide services has simply become too big to bridge.”

The government’s Fair Funding Review assumes councils already charge more council tax than North Somerset. The review calculates funding based on a Band D council tax of £2,060 – £267 more than North Somerset currently charges. Revised figures show the council will now be £23.8 million worse off over the next three years, significantly higher than earlier estimates.

To manage the crisis, the council is applying for Exceptional Financial Support (EFS) – a temporary mechanism that allows councils, with government approval, to treat some day-to-day spending as capital or raise council tax above the normal 4.99% cap. Cllr Bell stressed that EFS is “not a grant or a bailout,” and any borrowing must be repaid.

Without higher council tax rises and EFS, the council warns that major services would face immediate cuts. Social care, support for vulnerable children and essential local infrastructure could be reduced to only the legal minimum, risking a Section 114 “bankruptcy” notice.

“Residents are being asked to help fix problems created by historic low tax decisions, proposed funding changes and rising costs,” said Cllr Bell. “Efficiencies alone cannot close a gap of this scale.”

The council has pledged that every pound raised through higher-than-usual council tax will be used solely to protect essential services and support the most vulnerable. The final budget, including any exceptional tax increase, will be decided by full council in February.

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