SOMERSET Council could declare itself bankrupt amid soaring costs and demand on services, chiefs have warned.

On Wednesday (November 8), the authority’s executive set out a series of actions as it declared a financial emergency.

The latest budget figures show the council is facing a funding gap of £100m for 2024/25, which it says is due in large part to an expected increase of £70m in the cost of adult social care.

Without immediate action this could lead to Somerset being forced to follow the likes of Birmingham and Woking councils by issuing a S114 notice – effectively declaring the council bankrupt – the council warned.

Executive members voted to declare a financial emergency and noted controls being put in place across the organisation to limit spending.

Measures such as increasing council tax as much as possible, selling off council assets and buildings, as well as reducing staffing levels, could now be voted on.

The executive also agreed to dispose of commercial investments to raise money, and pledged to step up ongoing talks with the Department for Levelling Up, Housing and Communities (DLUHC).

Cllr Liz Leyshon, lead member for resources & performance and deputy leader, previously warned of “stark and challenging” financial conditions at the council and said it was now clear Somerset was among authorities facing problems.

“It is clear we are one of the growing number of councils nationally to be facing a financial emergency,” she said.

“There is a fundamental structural problem with local government budgets as our costs are rising much faster than our ability to raise income.

Cllr Liz Leyshon, lead member for resources & performance and deputy leader at Somerset Council

“While we will continue to call for a national solution to this national problem, we are also determined to do everything we can to reduce our budget gap to ensure we continue to provide support for those most in need.”

Officers are drawing up savings proposals which will be voted on by Executive at its December meeting.

These could include selling assets and buildings, including offices; increasing Council Tax, fees and charges as much as possible; reducing staffing levels; and reducing council services to statutory levels.

Meanwhile, council leader, Bill Revans, has this week written to all city, town and parish councils in Somerset to ask them to consider taking on greater responsibility for local community assets and services as part of a devolution project.

In his letter, Cllr Revans said the financial emergency could impact on the delivery of local services in future.

The letter includes a list of potential assets and services which local councils may wish to support, including public toilets, theatres and libraries, bus services and grass and hedge cutting.

READ MORE: Somerset Council finances ‘stark and challenging’, warns deputy leader

“We will need to review all our assets and services as we take action to address this financial emergency,” he said.

“Many city, town and parish councils have already expressed an interest in devolution and we recognise that some may wish to consider taking on community functions which could be at risk if we can no longer afford them.

“Transferring ownership and management of services at a local level, means communities can tailor them to meet the specific needs and preferences of their neighbourhoods.

“Local councils also have access to funding sources not available to the larger authorities. And they’re great at tapping into their networks to mobilise volunteers and partners.

“We’re committed to working with our city, town and parish councils to achieve the best outcomes for our communities. It’s time to move forward together, and take advantage of the many opportunities that lie ahead.”

Cllr David Fothergill, the leader of the Conservative group on the council, said the situation was “incredibly serious”.

“The current administration have squandered the strong budget position and the growing reserves that were handed to them following the last elections and have now brought he council to the edge of bankruptcy,” he said.

Cllr Fothergill added: “This is a really serious situation that has been created by the current administration failing to take difficult decisions, failing to keep people in position and failing to make sure that they focus on whats really important; a sustainable, long-term council for Somerset.”