A STORMY meeting ended in cash-strapped Somerset Council passing a balanced budget – amid warnings of potential bankruptcy.

The Full Council meeting on Tuesday (February 20) saw the proposed budget for the coming year voted through – including a council tax rise of 5% and using reserves to help plug a £100 million funding gap.

Dramatic cost-cutting measures – including plans to axe around 1,000 jobs at the authority – are now set to begin, as the council bids to avoid issuing a section 114 notice, effectively declaring itself bankrupt.

The proposals also include a ‘capitalisation direction’ of £36.9m – where councils are given permission by government to borrow money or sell assets to pay for day-to-day running costs.

After the vote, leader Cllr Bill Revans (Lib Dem, North Petherton) said: “Since declaring a financial emergency in response to the soaring cost of social care, we have done everything in our power to avoid a s114 notice.

“We have looked at all our non-statutory services to find savings and have taken a series of heart-breaking and unpalatable decisions, including cuts to services, increases to council tax, fees and charges, spending reserves, selling assets and property, and embarking on a top-to-bottom transformation programme which will reduce the size of our workforce by more than 20%.

“Despite this, we are still reliant on the government agreeing to a capitalisation direction – a short-term, one-off measure which, while welcome, does nothing to address the long-term issues.

“Today we have set a balanced budget but it is clear that we have a broken model for funding local government and social care which urgently needs a national solution.”

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The meeting also received an update from chief finance officer Jason Vaughan – known as a Section 25 Report – which details the robustness of the budget proposals.

This provided assurance around the estimates and the adequacy of reserves for this year, but also warned there is “high level of concern around future years and the financial sustainability of the council”.

It highlighted a need for new and significant savings in future years and concluded: “Based upon current forecasts there is a high likelihood that a Section 114 notice will need to be issued in respect of 2025/26.”

Some of the services initially put forward for savings have been protected through devolution and partnership working with city, town and parish councils.

This includes savings linked to Somerset’s CCTV service, Yeovil Recreation Ground, Taunton Visitor Information Centre, highways maintenance, RNLI lifeguard provision, school crossing patrols, and important democratic functions.

The potential closure of five county recycling centres is still undecided, as negotiations with Somerset’s household waste contractor continue.

A link to the Full Council papers, including the final list of savings proposals, can be found at https://democracy.somerset.gov.uk/ieListDocuments.aspx?CId=214&MId=7098&Ver=4