The Government has confirmed Somerset Council will not be allowed to raise Council Tax above the national cap of 4.99%, despite ongoing financial pressures and a looming £33 million budget gap for 2026/27.

The ruling comes as councillors prepare to finalise the unitary authority's budget later this month.

The council has already made savings of at least £50 million since its formation in 2023, but says further cuts are now likely.

Council leader Bill Revans said the decision puts Somerset at a disadvantage, especially given its size and rural geography. He added that the current funding model fails to account for historical decisions or rising costs in areas like adult social care, children's services and homelessness.

"This announcement means Somerset will remain at a disadvantage," he said. "We will face further difficult and heartbreaking choices about council services and charges."

Mr Revans reiterated calls for urgent reform of what he called a "broken" system, and said Council Tax was not a fair way to fund essential services.

The Government has not yet confirmed whether Somerset will be granted a Capitalisation Direction, which could allow further borrowing or asset sales to cover day-to-day costs.

Budget decisions will be taken at a series of meetings in February and March:

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• 11 February: Executive meeting on housing rents
• 25 February: Extraordinary Executive to consider full budget and Council Tax
• 4 March: Full Council meeting to set 2026/27 budget
• 6 March: Reserve date if required

Meeting papers will be published in advance and the public is encouraged to attend in person or watch online.

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