Red warning lights flash for council

Somerset Council’s finances have “more red lights flashing than a red light district”, according to one Conservative councillor.

- Daniel Mumby Local democracy reporter

The council declared a financial emergency in November 2023 and has relied on support from central government to balance its budget in both 2024 and 2025.

Despite this support, the council currently faces a budget gap of just over £45m for the current financial year - with next year’s budget gap rising to just over £101m, and the gap projected to exceed £190m by 2029/30.

To close this gap, the council has invested £20m (raised from the sale of surplus assets) on its transformation programme, bringing in external consultants to change how it delivers front-line services - as well as pouring more than £1.5m into Al to improve productivity.

But Councillor Sue Osborne has warned that even this may not be enough to save the council from having to declare effective banktuptcy in the not-too-distance future.