North Somerset Council want to raise council tax by up to 10%

Papers for North Somerset Council’s upcoming cabinet meeting reveal that the council requested government permission in December to raise council tax above the usual 4.99% cap as part of “exceptional financial support.”

However, with just over two weeks until the budget is due to be set, the council has not yet received a response. It is also awaiting confirmation of its final local government finance settlement.

The cabinet is scheduled to meet on February 11, but meeting papers warn: “Without this essential information, the cabinet are unable to finalise budget plans for the 2026/27 financial year and recommend a balanced budget to council at this time.”

Rather than presenting a balanced budget for recommendation to the full council, the cabinet now plans to submit the proposed budget directly to the full council, which meets on February 24. The council had warned in December that, without “exceptional financial support,” it risks being unable to balance its budget and could be forced to issue a section 114 notice.

If approved, a 9.99% council tax increase would raise the North Somerset Council portion of the monthly bill for an average Band D household by £14.93—more than the cost of a Netflix subscription without ads.

In a Facebook livestream in December, council leader Mike Bell said: “We can’t deliver enough savings, and our reserves are depleted, so we have to use all the tools available—including asking local people to pay more.” He added: “The reality is, we will be asking you to pay more, and you will be getting fewer services.”

Mr Bell explained that rising costs and demand for social care—now nearly two-thirds of the council’s spending—combined with falling government funding, have left North Somerset spending more than it receives. He described the government’s fair funding review, which will cut £18.6m (20%) of its funding over the next three years, as “the straw that broke the camel’s back.”

The council had previously warned in October of a £25.9m budget shortfall. Major savings, including cuts and new income measures, have reduced this gap to £8.4m, which must be eliminated by the March 11 deadline.

Under UK law, councils must set a balanced budget each year. If they fail, the chief finance officer must issue a section 114 notice—essentially declaring the council unable to meet its financial obligations. Only 17 such notices have ever been issued in the UK, 11 since 2018.

Rising social care costs have forced North Somerset to implement significant cuts in recent budgets. Last year, it used £9.1m from reserves to balance the 2025/26 budget but still had to implement cuts described by one councillor as “stripping services to the bone.” These included closing two local libraries, ending the North Somerset Life magazine, and freezing councillors’ allowances.

At a cabinet meeting in December, Mr Bell warned: “There is a point not far off where the cost of providing these services exceeds the total possible budget, and one-off exceptional financial support may not be enough to prevent that.” He added: “Only systemic change will fix this. Exceptional financial support will help us get through 2026/27, but it won’t address the underlying problems—we need government action.”