Liberal Democrat MPs challenge Government settlement for Somerset

The government’s provisional funding settlement to Somerset Council for 2026-27 has come under fire from the county’s six Liberal Democrat MPs.

They have written a joint letter to the Local Government Minister, Alison McGovern, asking for an urgent meeting.

The MPs describe the initial settlement as “profoundly disappointing" as it suggests Somerset would only receive a marginal increase in funding to £252million, compared with £249million in the current year.

The announcement indicates nearly all the increase in the costs of care for adults and children - a duty prescribed by government - and of other services, should be met by local people from Council Tax increases.

It also appears Somerset will lose out significantly on income received from business rate collection.

The MPs claim it will create serious challenge for both the council and the communities they represent.

“While any increase is welcome Somerset faces a unique and acute combination of pressures: a large and ageing population, significant rurality, higher costs of service delivery, and sustained growth in demand for adult social care, children’s services and support for children and young people with special educational needs and disabilities (SEND).

“Despite these well‑established pressures, the settlement fails to provide Somerset with the level of funding required even to maintain core services, let alone to invest in prevention and long‑term resilience.”

In particular, the MPs are concerned that:

• The settlement continues to inadequately reflect the real costs of delivering services in rural and sparsely populated areas, leaving Somerset at a structural disadvantage
• Funding increases fall well short of inflation and rising demand, especially in adult social care and children’s services
• Ongoing reliance on short‑term grants and one‑off funding streams undermines financial stability and makes effective long‑term planning extremely difficult
• Somerset’s relatively modest local tax base cannot reasonably be expected to close the growing funding gap, placing an unfair burden on residents who are already facing acute cost‑of‑living pressures.

“These concerns are echoed by the County Councils Network, which has warned that recent changes to the government’s original proposals have disproportionately benefited London and metropolitan boroughs at the expense of county and rural areas.

“The network has highlighted that the continuation of the Recovery Grant and the removal of ‘remoteness’ from almost the entire funding formula will divert hundreds of millions of pounds from rural to urban areas over the next three years.

“It has further raised serious questions about whether these last-minute changes, amount to ministers unfairly cherry-picking which councils benefit from additional funding.”

Following major programmes of savings and redundancies at Somerset Council the MPs say difficult and responsible decisions have been taken to manage the finances, including through the transition to a new unitary authority.

“However, even with efficiencies and transformation, the current settlement risks forcing further reductions to non‑statutory but highly valued services that underpin community wellbeing and economic resilience, such as public transport support, highway repairs, art and culture, libraries and local infrastructure.”

The MPs are calling on the government to:

• Ensure future funding settlements properly account for rurality, demographic change and relative need
• Provide a sustainable, multi‑year funding framework that gives councils the certainty required for effective financial planning
• Deliver a credible, long‑term solution to the funding of adult social care and SEND, rather than continuing with piecemeal and short‑term measures.

They add: “Somerset’s residents deserve a fair funding settlement that enables their council to meet statutory obligations and to support thriving, resilient communities.

“We would welcome the opportunity to meet with you urgently to discuss these concerns and the steps needed to deliver a sustainable funding future for Somerset.”