Local Government Minister Alison McGovern has raised ‘significant concerns’ about Somerset Council’s financial position in a letter responding to its request for exceptional financial support (EFS).
Writing to council leader Bill Revans, McGovern highlighted concerns about the pace and delivery of the council’s transformation plans, repeated requests to reprofile support, and statutory recommendations issued by external auditors.
‘My clear expectation is that the council is taking robust action to address these specific risks and issues, as part of wider plans for your financial recovery and improvement,’ she said.
While this letter did not constitute an approval of a capitalisation direction, the Government subsequently signed off on Somerset Council’s request for £30m of support.
Around £25m will be used to cover a budget gap and £5m to support the further transformation of services, according to the council’s website. Cllr Revans welcomed the confirmation of the exceptional financial support but emphasised that it was not ‘a bailout or extra funding.’
He said the council recently lost around £21m a year as a result of the ‘so-called’ fair funding review, adding that the historic cause of Somerset Council’s financial difficulties was ‘reckless freezing’ of council tax for six years by Somerset County Council.
