Households across Somerset could see Council Tax rise by 7.5% from April 2025 as Somerset Council battles a major financial crisis.

The increase—2.5% higher than the usual cap—has been approved by the government as part of Exceptional Financial Support to help plug a £88.8m budget shortfall. Despite drastic cost-cutting measures, including staff reductions and asset sales, the council is still facing a funding gap of £53.8m for the next financial year.

How will this affect you?

• Bigger Council Tax bills
• If Somerset Council opts for the full 7.5% increase, households will pay significantly more from April. The exact amount will depend on property banding, but the rise will be felt across the county. The final decision on whether to apply the full increase will be made in the coming weeks.
• Cuts and sell-offs continue
• Even with the tax rise, it won't be enough to fully close the financial gap. The council will still need to sell off assets and borrow money under a Capitalisation Direction, which allows it to use one-off income to cover day-to-day running costs.
• Buildings up for sale include The Cornhill in Bridgwater and the Market House in Taunton. Further reductions to non-essential services are also expected.
• Why the increase?
• The council declared a financial emergency in November 2023 and warned of escalating costs in adult and children's social care. Despite staff cuts and restructuring, the council is still struggling to balance its budget without drastic measures.

Pay rises for Somerset Council's CEO and staff

At the same time as proposing a Council Tax increase, Somerset Council has approved a 2.5% pay rise for all staff and councillors, including Chief Executive Duncan Sharkey, who will now earn over £212,000 per year—more than the Prime Minister's salary of £172,153.

The pay increase for the CEO—worth over £5,000—was approved at a Full Council meeting on December 18, 2024.

Cllr Theo Butt Philip, lead member for Transformation and Human Resources, proposed the recommendation, which was agreed despite the council's financial crisis.

A Somerset Council spokesperson said:

"We are completely transparent about what we pay our staff, and details of our pay policy and the salaries of senior staff are published on our website."

They added that the pay grades are comparable with other councils and are set by national pay negotiations and job evaluation processes.

How can you have your say?

The council will debate the proposed tax rise and budget cuts in the coming weeks. Residents can attend or watch online at these key meetings:

• Scrutiny Corporate & Resources – 17 February
• Executive meeting – 19 February
• Full Council budget vote – 26 February (reserve date: 5 March)

Papers will be published ahead of each meeting, and residents are encouraged to attend.

Even if the tax hike goes ahead, further cuts and changes to local services are inevitable as Somerset Council continues to face significant financial pressures. The decision to approve pay rises for council staff and senior executives while increasing residents' tax bills is likely to raise further debate.