Somerset Council is facing a financial crunch that could lead to major cuts to services in Wells and across the county unless more funding is secured from Whitehall.

The authority is forecasting an overspend of £5.409 million this year, largely driven by soaring demand in children's services and a steep rise in the use of temporary accommodation. In children's services alone, the shortfall is estimated at about £3.63 million, while adult social care is projected to overshoot by roughly £1.89 million.

For the past two years, the council has relied on a "capitalisation directive" from central government—an exceptional measure that allows day‑to‑day spending to be covered using the proceeds from selling assets. But that safety net may not be available for 2025/26. Without it, Somerset's interim chief financial officer, Clive Heaphy, says he and the council will have to "look long and hard" at cuts or drawing down reserves to balance the books.

Conservative councillor John Cook‑Woodman challenged this at a meeting in Taunton, asking what plan exists if the capitalisation directive isn't renewed. Mr Heaphy said discussions are ongoing with MHCLG, but warned that demonstrating proper income vs. spending control will be essential. Meanwhile, the council is attempting to mitigate some pressures by purchasing up to 15 properties to ease the burden of temporary accommodation costs.

A full budget update is expected to come before the executive committee before Christmas.

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