North Somerset Council in talks with government to fill £25m black hole in budget

North Somerset Council may seek permission to push council tax above the usual 5% cap next year as it battles a £25m budget shortfall.

The authority is in talks with the government over “exceptional financial support,” which could allow it to avoid a local referendum and impose a higher increase. Normally, councils can raise tax by 3%, with a further 2% for adult social care.

Council leader Mike Bell said the council is “doing everything we can” to close the gap. “That includes service reductions, lobbying the government for a fairer deal, and some tough decisions around future council tax rises,” he told the Local Democracy Reporting Service.

Neighbouring Somerset Council was allowed a 7.5% increase last year after receiving similar government approval.

A report to cabinet on 15 October warned the council cannot fill its financial black hole without exceptional support. Without a balanced budget, it could be forced to issue a section 114 notice — a move that can ultimately lead to government control of its finances.

Cllr Mike Bell said rising demand for children’s and adults’ social care has pushed costs to unprecedented levels, with some individual support packages costing the council hundreds of thousands of pounds. “Costs have quadrupled in recent years while our ability to raise money has not,” he said.

The council already dipped into its reserves last year, using £9.1m to balance its books and still making major cuts. Councillors’ allowances were frozen, the council magazine was axed and three libraries are likely to close.

Cllr Mike Bell also criticised the long-term losses at Carlton Street Car Park in Weston-super-Mare, where structural issues have shut half of the site. The council is tied into a 45-year lease agreement and loses about £250,000 a year. “We have been losing money pretty much from day one — it’s the worst deal any council has ever signed,” he said.

Further financial pressure is expected from the government’s “fair funding” review, which North Somerset warns could strip £17m a year from its budget. “There is nothing remotely fair about this for North Somerset,” Bell told cabinet.

The council will set its 2026/27 budget in February.