A BUDGET gap of £73 million facing Somerset Council has suddenly fallen by nearly two-thirds despite the Government blocking the authority’s bid to increase council tax by 11 per cent this year.

Somerset had asked Government for ‘exceptional financial support’ (EFS) for a third year in a row which would have included more than doubling the amount it was allowed to increase council tax without first holding a public referendum.

Now, council leader Cllr Bill Revans has confirmed it will only go for a 4.99 per cent rise, the maximum before referendum rules kick in, and put the latest budget gap at £25 million.

Cllr Revans said further savings would be found ‘through transformation’ and another request to Government for EFS, this time in the form of a ‘capitalisation direction’ to allow it to pay for day-to-day spending over a number of years by borrowing money or selling assets.

But, Conservative opposition group leader Cllr Diogo Rodrigues questioned how the projected financial gap could fall so dramatically in a matter of weeks.

Cllr Rodrigues said: “The gap has reduced to around £25 million, with proposals in place to close it, without job losses or major service cuts.

“There are no so-called ‘heartbreaking choices’ here, something the Liberal Democrat leader of the council indicated was inevitable.

“What we are seeing is movements of money from one pot to another, decisions about what is or is not placed into contingency, and financial flexibility that could have been exercised much earlier.

“In my view, those steps could have been taken before the council asked Government for permission to impose an 11 per cent council tax rise on Somerset households.

“It is extremely frustrating because the process has felt like smoke and mirrors and so I would not be surprised if Somerset people feel somewhat misled.”