SOMERSET Council’s finances have “more red lights flashing than a red light district”, according to one Conservative councillor.

The council declared a financial emergency in November 2023 and has relied on support from central government to balance its budget in both 2024 and 2025.

Despite this support, the council currently faces a budget gap of just over £45-million for the current financial year – with next year’s budget gap rising to just over £101-million, and the gap projected to exceed £190-million by 2029/30.

To close this gap, the council has invested £20-million (raised from the sale of surplus assets) on its transformation programme, bringing in external consultants to change how it delivers front-line services – as well as pouring more than £1.5-million into AI to improve productivity.

But Cllr Sue Osborne has warned that even this may not be enough to save the council from having to declare effective bankruptcy in the not-too-distance future.

Ms Osborne, shadow portfolio holder for transformation, human resources and localities, made her comments at a meeting of the council’s audit committee in Taunton on Monday morning (September 29).

She said: “It’s all well and good thinking about the long term and putting plans in place for the long term, but we have to ensure short-term survival.

“We have to make savings of around £45-million now for 2024/25, and we’re looking at £101-million for 2026/27. If we don’t achieve that, we’re going to be in real trouble.

“When you see our financial reports, there are more red lights flashing than you’d ever find in a red light district. Something is seriously wrong.”

Council reports use a traffic light system to assess the various risks associated with the council’s finances – with red indicating that a given scenario (such as declaring effective bankruptcy) is either likely or highly impactful on the council’s reputation and ability to deliver services.

Ms Osborne – who represents Ilminster and the neighbouring villages – clarified: “I used to live very close to Bradford and there was a very notorious street there.

“We are in a very serious hole, and I’m not sure that transformation in the short term is going to deliver a way out of it.”

Clive Heaphy, the council’s interim chief financial officer, said that Somerset was not the only local authority which had requested exceptional financial support from central government for consecutive budgets.

He said: “There are quite a number of local authorities in that position.

“My aim this year is not just the legal requirement to balance the one-year budget, but I’m looking to see if we can balance our budget over a four-year period.

“This will demonstrate to ourselves, to the government and to the external auditors that we are financially sustainable.”

Mr Heaphy added that the public consultation on next year’s budget would begin on December 3, with residents being invited to rank their priorities for the coming 12 months.

He said: “As a council we need to get our spending down to our level of income, and we still have tough decisions to make.”