Council hires firm to save money - at cost of £20m

Somerset Council leader Bill Revans said he is "quite happy to buy in expertise" when needed

A company is to assess how a council can save money - at a potential cost of £20m.

Somerset Council has appointed Newton Consulting to help it cover a projected funding gap of £190m over the next five years.

An initial £1.5m is being spent in the "first phase" of the contract but a statement from the council suggests that could rise significantly.

Councillor Theo Butt Philip said the firm has "proven credentials" in helping find savings, but campaigner David Orr said the move was "too little, too late".

In a statement, a Somerset Council spokesperson justified the agreement saying the contract is expected to return £2.50 to £3 for every £1 invested.

Councillor Theo Butt Philip, lead member for transformation, human resources and localities, said: "Like most councils, Somerset's financial situation remains critical with costs and demand for services rising much faster than our ability to raise income.

"Although we have already found significant savings ourselves, including £34m through restructuring, we now believe we need the input of external experts who have proven credentials in delivering the next level of change."

Speaking on BBC Radio Somerset, Bill Revans, the Liberal Democrat leader of Somerset Council said: "We're quite happy to buy in expertise where we need it and we know that there are some brilliant minds out there in the local government family."

'Budgetary woes'

It comes as an independent report published earlier this year found 45 key risks in the council's finances – 32 of which have been given the highest risk rating.

The report, by the Chartered Institute of Public Finance and Accountancy (CIPFA) also took aim at Conservative councillors who controlled the authority between 2009 and 2022.

It said "a significant proportion" of the current council's budgetary woes have been caused by the freezing of council tax for six consecutive years from 2010.

The report was commissioned by the government as a condition of the "exceptional financial support" it has given the authority.

This support included giving the council permission to raise council tax by 7.49% this financial year, and allowing it to sell off buildings to pay for day-to-day services.

In November 2023, the council declared a financial emergency, saying it was at risk of going effectively bankrupt unless it could find more than £100m of savings for the following year.

The authority voted through a further £66m package of cuts and savings for its budget for 2025/26, including 555 staff job losses.

The public finance body said at the time that further "exceptional financial support" may be needed to balance Somerset Council's budget for 2026/27.