Council tax to rise in Somerset despite extra cash

A full breakdown of the figures will become clearer once the authority sets its budget in February

More money is to be made available to public services in Somerset, but residents will face an increase in council tax next financial year.

Somerset County Council has been told it will receive a 3.7% increase (£13m) for core spending.

But the figures assume the authority will raise its band D council tax by 2.99%, the maximum without triggering a local referendum.

Core spending refers to all sources of funding for the county council.

This includes council tax, business rates and grant funding from central government - which has been reduced over the past few years.

Earlier this week the government said Somerset would be part of a pilot scheme, with the county's five district councils, allowing them to retain 75% of business rates in 2019/20 rather than the usual 50%.

It is estimated that this will generate an extra £6.8m, which will be distributed as follows:

• £1m for the county council to "support front-line services, such as those for vulnerable adults and children"

• £2.4m for the district councils for their front-line services

• £3.4m for projects which "support economic activity and growth in Somerset"

David Fothergill, who is chief executive of Somerset County Council described the money from the pilot as "fantastic news".

But he said, "welcome though these additions are... they are one-off allocations".

"This doesn't solve the fundamental problem of inadequate funding for local government, which means we are having to look at bridging a funding gap of around £28m over the next three years."

Of the £354m of core spending estimated for 2019/20, the Ministry for Housing, Communities and Local Government believes the council could raise £228m through raising its council tax - with an additional £18m coming from a separate precept for adult social care.