A DAMNING indictment of the financial management of Somerset Council has been delivered with the Government serving a ‘Best Value Notice’ on the beleaguered authority.

The Ministry of Housing, Communities and Local Government’s James Blythe said in a letter to Somerset chief executive Duncan Sharkey that steps already being taken by the council were acknowledged.

But, Mr Blythe said: “Ministers remain concerned as to Somerset’s capacity to comply with its best value duty and consider action is necessary to address those concerns transparently and at pace.

“They have therefore decided to issue Somerset with this ‘Best Value Notice’.

“This notice is a formal notification that the Department has concerns regarding your authority and requests the authority engages with the Department to provide assurance of improvement.”

The news came as Somerset announced its sixth chief financial officer in four years with the appointment of Lizzie Watkin, who is moving from Wiltshire Council where her job was being axed as part of a cost saving exercise.

Beleagured Somerset Council Lib Dem leader Cllr Bills Revans faces declaring bankruptcy next year. PHOTO: Daniel Mumby.
Somerset Council leader Cllr Bill Revans has defended the authority in the face of a Government notice expressing concern over its financial management. PHOTO: Daniel Mumby. ( )

She will take up the £246,400 role on July 31 just weeks after auditors gave the Somerset authority a dismal one-star rating for its financial management.

Mr Blythe said auditors had concluded Somerset remained ‘in a fragile financial position’ and ‘requires urgent action’ to put in place effective demand management strategies for key services.

Despite the Government giving Somerset ‘exceptional financial support’ for the past thee years, the council’s transformation was not yet enough to address the scale of its financial challenge.

There was still evidence of weaknesses in financial resilience and financial management, including continued reliance on ‘exceptional financial support’, and low reserves.

Mr Blythe said Somerset needed to continue taking urgent steps to improve financial sustainability, and strengthen management of key services, decision-making, performance management, and organisational accountability.

He said: “We expect the council’s improvement board to provide regular written updates to Cabinet, to be shared with the Department and published for transparency.”

Mr Blythe also warned the Secretary of State could step in and use statutory powers if Somerset failed to demonstrate it was improving.

Council leader Cllr Bill Revans said: “This is a challenging moment, but not an unexpected one.

“We recognise the seriousness and we accept the need to demonstrate continued improvement.

MP Sir Ashley Fox has lambasted Somerset Council's 'financial incompetence' after it was slated by the Government.
MP Sir Ashley Fox has lambasted Somerset Council's 'financial incompetence' after it was slated by the Government. (Contributed)

“We also want to give every assurance that the work needed is already under way and we are on the front foot.

“Residents should be reassured Somerset Council remains responsible for making decisions locally.

“Essential services will continue to be delivered and our commitment to improving services and achieving financial sustainability remains unchanged.

“Our focus now is on maintaining momentum, delivering improvement, and demonstrating progress.

“We welcome the opportunity to demonstrate that progress to Government and to our residents, and this will help us access further advice and support.

“It is our aim to set a balanced budget in 2027-28 without the use of external exceptional financial support.”

One of West Somerset’s MPs, Sir Ashley Fox, said the Best Value Notice’ was a damning verdict on ‘four years of incompetence’ by the administration at Somerset Council.

Sir Ashley said: “A ‘Best Value Notice’ is not issued routinely.

“It is a clear signal that the Government has the most serious concern about the council’s financial management, its performance, and the painfully slow pace of improvement.”

Sir Ashley said the council had repeatedly assured residents everything was under control, but the reality now told ‘a very different story’.

He said: “Somerset has declared a financial emergency, relied on repeated Government bailouts, spent more than £19 million on consultants, around £40 million on agency staff, received a one-star out of five rating for financial management from CIPFA, and lost around £90 million through poor property sales.”