Somerset Council faces financial crisis and government warning

Somerset Council is facing a severe financial crisis, with officials describing the attempt to manage its finances as being like “picking up rice pudding in your hands.” The Ministry of Housing, Communities and Local Government (MHCLG) issued a “best value notice” on July 14, serving as a final warning for the authority to stabilize its finances before government commissioners may be appointed.

The council has struggled to avoid bankruptcy since its formation in 2023. Key financial issues include over £1 billion in debt, the sale of assets totaling more than £90 million, and a £30 million overspend this year. Despite making 500 employees redundant, the council has reportedly spent £40 million on agency staff and £20 million on consultants.

Council leader Bill Revans acknowledged the difficulties, noting that the auditor’s report was “sobering reading.” While the council has appointed a new chief financial officer to oversee preparations for the February 2027 budget, executive members have warned that current efforts to avoid bankruptcy are “not working” as demand pressures continue to outpace savings.