Minister has 'significant concerns' about council

A government minister says she has "significant concerns" about a council's financial planning.

Local Government Minister Alison McGovern made the comments in a letter about Somerset Council, confirming it would be allowed to sell-off assets to pay for day-to-day services - the third consecutive year it has required this special permission.

Liberal Democrat council leader Bill Revans said the authority had taken "a number of decisive actions ourselves to protect frontline services" while also avoiding the "threat" of going effectively bust.

Conservative Sir Ashley Fox MP for Bridgwater, said he welcomed the minister's comments and the council should "get its house in order".

The Ministry of Housing, Communities and Local Government confirmed Somerset Council's request for £30m exceptional financial support had been approved in principle.

This means the council is allowed to take out borrowing or sell assets and use that money to pay for day-to-day services, something which is not usually allowed.

The authority said £25m will be used to cover a budget gap for 2026/27 and £5m to support the further transformation of services.

Revans said: "This confirmation is welcome but it's important to note that it is not a bailout or extra funding.

"It is clear the funding system for local councils is broken and we urgently need a better way to pay for demand-led services like social care."

The council has previously sold-off commercial investments to raise cash.

In a letter sent to Sir Ashley, McGovern said while the government had approved the exceptional financial support in principle, she had "significant concerns over aspects of the council's wider position".

She raised the "pace and delivery" of the council's transformation plans and concerns raised by external auditors about the authority's ability to find savings.

McGovern said the government would "move quickly" with an external audit assurance review of the council.

Somerset Council said this review was a "standard condition attached to exceptional financial support" and that previous such reviews had been published.

Sir Ashley said: "I welcome the fact the Minister has recognised these specific risks and is taking action.

"Somerset Council must now get its house in order, deliver its transformation plans at pace and stop wasting council taxpayers' hard earned money."

Earlier this month, a request by Somerset Council to increase its share of council tax by up to 11% in 2026/27 was rejected by the government.

Final decisions on the budget, expected to include a recommendation to increase the authority's share of council tax by 4.99%, will be taken on 4 March.

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