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Millions of pounds in savings and increased income have been identified to balance the budget for the 2025-26 financial year and the gap now stands at £500,000, down from £2.5m before Christmas.
However, we still face increased financial pressures over the next three years.
In December the government published its draft local government finance settlement, setting out how it proposed to distribute core funding to local councils.
This included some welcome measures and targeted funding for Special Educational Needs and Disabilities (SEND) services and social care.
However, it didn’t deliver the fairer deal we are asking for and impossible choices still need to be made.
We also didn’t receive any recovery grant, the funding intended to support the councils which have high spending pressures and low tax bases.
After a decade of increasing demand and increasing costs, the job of councils is getting harder and harder.
Our latest forecast shows a budget gap of £8m during our three-year Medium Term Financial Plan between 20025-28, which is £700,000 more than our December forecast.
Very tough decisions need to be made, including millions of pounds in efficiency savings, service transformations and changes to staffing structures to cut costs.
Residents and businesses will see these impacts, such as reducing grounds maintenance, changes to street cleaning and a review of our library services.
If we don’t do this, we’re at risk of a Section 114 notice – when a council’s expenditure is more than their income in a financial year.
When that happens, the government steps in and has the power to cut services as well as increase taxes and charges.
Services can be reduced to ‘essential’ only, ones we have a legal duty to provide.
This could mean cuts to street cleaning and maintenance, closure of parks and play areas, closure of CCTV monitoring, or reduced hours for our leisure centres, libraries, recycling centres.
We’re working urgently to avoid a section 114 notice and the significant impacts it would have on you.
The final budget and council tax levels for 2025-26 will be voted for and set by councillors at the meeting on Tuesday 25 February.
It will be streamed live on our YouTube channel.
Still time to sign Fair Deal petition
We’re calling on the government to give us a fairer funding deal and you still have time to sign to add your name to our petition.
Here in North Somerset we get less core funding per home than other neighbouring councils and have lower council tax rates than them.
This means we’re losing out in millions in funding compared to neighbouring authorities.
We’re calling on the government to do more, and more quickly, to:
- increase the level of core funding they provide to local councils, and
- develop a fairer funding system so North Somerset gets its fair share.
Please sign our Fair Deal petition and make your voice heard.
The petition will then be sent to the Ministry of Housing, Communities and Local Government.
Thank you for feedback
Thank you to everyone who took part in our recent survey asking for ideas on how to balance the budget.
We asked for your views on whether you’d support a further increase in council tax, if you’d consider helping pay for services through a voluntary contribution, what our top priority should be for the coming year, and how the proposed savings could affect you and other residents.
The survey closed on Monday and feedback will help us understand the potential impacts of our proposed savings and help us make an informed decision when the budget is agreed in February.