Somerset council faces 'huge' task finding £38m savings

Councillor Liz Leyshon said it looked as if Covid-19 will have a lasting effect on public services

Somerset's new unitary authority faces a "huge challenge" finding savings of £38m in its first year.

Somerset County Council and four district councils are set to be replaced by Somerset Council in April.

In the face of inflation, rising demand and the long-term impact of Covid, it needs to fill a projected £38.2m gap in its first budget.

Council officer Jason Vaughan said that would mean "new savings will need to be put in place".

"This is a huge challenge as the new council pulls its services together, and it is clear that the savings from the unitary business case will not be enough to close the gap," the council's director of finance and governance added.

"The focus will remain on driving out inefficiencies, but it is clear from the scale of the financial challenge that cuts to services will be required."

The county council is set to merge with district authorities in Mendip, Sedgemoor, Somerset West & Taunton and South Somerset.

But it faces an uphill battle with four of the five councils predicting an overspend in their final year - leaving a combined shortfall of £28.6m, according to a report put before the county council's executive committee on Wednesday.

The figure was subsequently revised upwards to £44.5m in July in light of rising inflation, according to the Local Democracy Reporting Service.

When all savings proposals were removed, the overall gap between the new council's revenue and outgoings was estimated to be £74.2m.

The new Somerset County Council Executive which will exist from April 2023

Of this, £27.8m would be covered by implementing "savings and income generation proposals", according to LDRS.

A further £8m is expected to come from central government to cover the cost of social care reform - leaving a gap of £38.2m which will need to be filled by tax rises and new cuts.

Further details of these schemes, and how they will be implemented, are expected to be presented to the executive committee in January.

It could include reducing capital spending, increasing fees and charges and minimising redundancy payments as part of the unitary transition.

Deputy leader Liz Leyshon said the challenges Somerset faced were mirrored across the UK.

She said: "We are seeing a dramatic rise in the complexity of care needed by people presenting to adults' and children's social care.

"Both services are dealing with much more complex cases than we would have expected pre-pandemic, and we've seen a particular rise in the need to support young people's mental health since lockdown.

• Council declares learning disability emergency

• Council defends new boss's £200,000 salary

• Rural council declares cost of living emergency

"While the number of people with the virus may be lower than last year, it looks as if Covid-19 will have a lasting effect on public services.

"Covid grants from central government are coming to an end just as the long-term impact of the pandemic is becoming clear."

Additional reporting by Ollie Pritchard-Jones

Follow BBC West on Facebook, Twitter and Instagram. Send your story ideas to: [e-mail]