Agenda, decisions and draft minutes

To receive any apologies for absence.

Apologies were received from Councillors Jason Baker, Mike Caswell, Nicola Clark, Lance Duddridge, David Fothergill, Andrew Govier, Philip Ham, Helen Kay, Jenny Kenton, Kathy Pearce, Gill Slocombe and Sarah Wakefield.

Although apologies had been received, Councillors Mike Caswell and Helen Kay attended the meeting online.

To approve the minutes from the previous meeting.

Resolved that the minutes of Full Council held on 18 December 2024 be confirmed as a correct record.

To receive and note any declarations of interests in respect of any matters included on the agenda for consideration at this meeting.

(The other registrable interests of Councillors of Somerset Council, arising from membership of City, Town or Parish Councils and other Local Authorities will automatically be recorded in the minutes: City, Town & Parish Twin Hatters - Somerset Councillors 2023 )

Councillorspresent atthe meetingdeclared thefollowing interestsin their capacity as a Councillor of a Town or Parish Council or any other Local Authority:-

The Chair to advise the Committee of any items on which members of the public have requested to speak and advise those members of the public present of the details of the Council’s public participation scheme.

For those members of the public who have submitted any questions or statements, please note, a three minute time limit applies to each speaker and you will be asked to speak before Councillors debate the issue.

We are now live webcasting most of our committee meetings and you are welcome to view and listen to the discussion. The link to each webcast will be available on the meeting webpage, please see details under ‘click here to join online meeting’.

Public questions were received from:-

·       Neil Guild and Micheál Duffy – Union Submission – Funding and Staffing

·       David Orr – Budget

·       David Preece – Budget

·       Rosa Kell – Budget and Car Parks

·       Nigel Behan – Budget

·       Keith M Bevan – Council finances

·       Alan Debenham – Council funding

·       David Redgewell – Transport

The questions and responses provided are attached to the minutes in Annex A.

To receive and note the Chair’s Announcements including events detailed on the Chair’s Information Sheet.

The Chair of Council, Councillor Mike Best, referred to the events detailed on the Chair’s Information Sheet, circulated and published with the agenda.

To consider the recommendations from the Leader and Executive.

Councillor Federica Smith-Roberts proposed the recommendations, which were seconded by Councillor Suria Aujla.

Having been duly proposed and seconded, the Council Resolved to agree:-

1)    The HRA Annual Revenue Budget for 2025/26 as set out in Section 3 and in Appendix A.

2)    The Capital Programme of £304.638m including new additions of £213.587m and budget deletions of £4.738m as detailed in Section 4 and Appendix B.

3)    Delegated authority to the Chief Finance Officer (Section 151 Officer) to approve the final capital financing of the capital programme annual spend.

4)    Delegated authority to the Chief Finance Officer (Section 151 Officer) and the Executive Director of Community, Place and Economy, in conjunction with the Deputy Leader of the Council and Lead Member for Finance, Procurement and Performance and the Lead Member for Communities, Housing Revenue Account, Culture and Equalities and Diversity to approve the tenure (social vs affordable rents) of each social housing scheme.

5)    Delegated authority to the Executive Director of Community, Place and Economy and the Chief Finance Officer (Section 151 Officer), in conjunction with the Lead Member for Communities, Housing Revenue Account, Culture and Equalities and Diversity, to acquire dwellings in accordance with the HRA Capital Programme for 2025/26 to 2029/30 and updated Business Plan 2025/26.

6)    The minimum balance for the HRA General Reserves at £5.863m, the equivalent of 10% of revenue for 2025/26 and approximately £600 per property.

7)    To note the updated Medium Term Financial Plan 2025/26 to 2029/30.

8)    To note the updated 30-Year Business Plan in Section 7 and Appendix C.

The Lead Member for Communities, Housing Revenue Account, Culture, Equalities and Diversities, Councillor Federica Smith-Roberts, introduced the report which the Executive considered and endorsed at its meeting on 3 March 2025.

The report detailed both the Annual Revenue Budget for 2025/26 and the Capital Programme for 2025/26 to 2029/30 for the Housing Revenue Account (HRA). The report also provided an update on the 5-year Medium Term Financial Plan and the 30-year Business Plan Review.

Council was also reminded that the Rent Setting and Fees and Charges were approved by Full Council on 12 February 2025.

The Lead Member concluded that the report included proposals that would enable the Council to set a balanced budget which would satisfy its legal duty.

During the discussion, the following points were raised:-

·       Councillors highlighted comments raised by the Corporate Peer Challenge which stated that the long-term viability was not achievable.  Concern was raised that the HRA would be left in a vulnerable position.

·       Councillors were in favour of buying extra homes but were concerned on where the funds would come from to support the purchases.

The Lead Member for Communities, Housing Revenue Account, Culture, Equalities and Diversities advised that they would look at each purchase on its own merits and that the right to buy options could be used.

·       Councillors raised concern on the lack of 4-bedroom properties across the county and hoped that more stock would be forthcoming.

The Lead Member for Communities, Housing Revenue Account, Culture, Equalities and Diversities advised that the Capital Programme detailed the different projects and what type of properties they would generate.

·       Councillors highlighted that the delegation detailed in the recommendations did not mention the inclusion of scrutiny.

The Lead Member for Communities, Housing Revenue Account, Culture, Equalities and Diversities was happy to include scrutiny in the consultation.

·       Councillors requested clarification on the strategy for purchasing properties and queried how many had been purchased over the past 12 months.

The Lead Member for Communities, Housing Revenue Account, Culture, Equalities and Diversities advised that she would provide a written answer.

·       Councillors requested clarification on the developers 20% target for social housing and whether it was now for the Council or the registered providers.

Councillor Federica Smith-Roberts proposed the recommendations, which were seconded by Councillor Suria Aujla.

Having been duly proposed and seconded, the Council Resolved to agree:-

1)    The HRA Annual Revenue Budget for 2025/26 as set out in Section 3 and in Appendix A.

2)    The Capital Programme of £304.638m including new additions of £213.587m and budget deletions of £4.738m as detailed in Section 4 and Appendix B.

3)    Delegated authority to the Chief Finance Officer (Section 151 Officer) to approve the final capital financing of the capital programme annual spend.

4)    Delegated authority to the Chief Finance Officer (Section 151 Officer) and the Executive Director of Community, Place and Economy, in conjunction with the Deputy Leader of the Council and Lead Member for Finance, Procurement and Performance and the Lead Member for Communities, Housing Revenue Account,  ...  view the full minutes text for item 82.

To consider the Section 25 Statement.

Councillor Liz Leyshon proposed the recommendations, which were seconded by Councillor Bill Reavns.

Having been duly proposed and seconded, the Council Resolved to consider and acknowlegde:-

a)    The advice of the Council’s Interim Chief Finance Officer (Section 151 Officer) in their Section 25 report (Appendix A) in relation to the robustness of the Budget estimates and the adequacy of the level of Reserves for 2025/26, as required by Section 25 of the Local Government Act 2003.

b)    The Section 151 Officer’s warning about the critical financial position of the Council, the £101.384m 2026/27 Budget gap increasing to £190.041m over the medium term, inadequate reserves and the lack of financial sustainability over the period 2026/27 to 2029/30.

c)    The minimum level of Reserves was set at 5% of the Net Revenue income stream on 1 April 2025 which was £33.254m (excluding the use of EFS to meet the Net Revenue Budget). The appropriate level of General Fund Balance be set at £60.000m for 2025/26.

d)    The responsibility of Council Members under Section 31A of the Local Government Finance Act 1992, to have regard to this report when making decisions on agreeing the Budget and setting the Council Tax for the financial year 2025/26.

(NB – recommendation (c) amended at the meeting)

The Section 151 Officer, Maria G Christofi, introduced the report which detailed the statutory requirement made under Section 25 of the Local Government Act 2003, which required the Section 151 Officer to report on the following matters to Council when agreeing the annual budget and Council Tax levels:-

·       the robustness of the estimates made for the purposes of the budget calculations, and

·       the adequacy of the proposed financial reserves.

She further highlighted that the report formed part of the legal requirement to ensure that councillors had regard to the professional advice provided by the Chief Financial Officer when debating the annual budget.

The Section 151 Officer reminded councillors that this was the second year that the Council had been unable to balance the budget without assistance from the Exceptional Financial Support from the Ministry of Housing, Communities and Local Government.  The Council had also received approval to raise the Council Tax by an additional 2.5% without the need of a local referendum, along with an ‘in principle’ approval for a Capitalisation Direction.

Having taken all of the additional support into account, the Section 151 Officer considered that the proposed budget was robust and constituted a balanced and lawful budget and that the level of Reserves was adequate.  However, she did raise serious concerns on the critical financial position of the Council and its financial viability.

During the discussion, the following points were raised:-

·       The Deputy Leader and Lead Member for Finance, Procurement and Performance advised that the figure stated in recommendation c should be 5% not 10%.

·       Councillors highlighted the letter received by the Minister and the level of support for the Council detailed within.

·       Councillors raised concern that the report only provided assurance on the budget for the upcoming year and not beyond.

·       Councillors raised concern that the Council was reliant upon assistance provided by the Exceptional Hardship Fund.

The Section 151 Officer advised that although it was the second year of support from the Exceptional Hardship Fund, it had meant that the Council had not drawn from the reserves.

·       Councillors suggested that some of the details in the report were contradictory and that one of the appendices appeared to show the reserves being depleted with no plans to regain.

·       Councillors queried the risks and scoring contained within the report and that there were concerns on the mitigation measures.

The Section 151 Officer advised that the risk scores referred to the Medium Term Financial Plan and not the Budget.

·       Councillors requested assurance that there was a robust method in place for the collection of Council Tax, Community Infrastructure Levy and Section 106 monies.  They further suggested that a review be carried out on the process to ensure that all monies ‘due’ to the Council were collected.

·       Councillors raised concerns that commercial assets had been sold at a loss, some of which had been making a profit.

The Section 151 Officer gave clarification on the commercial assets.

·       Councillors thanked the Finance Team for all their hard work carried out on  ...  view the full minutes text for item 83.

To consider the recommendations from the Leader and Executive.

Councillor Liz Leyshon proposed the recommendations, which were seconded by Councillor Bill Revans.

Having been duly proposed and seconded, the Council Resolved to:-

In respect of the Robustness of the Budget

a.          Confirm that it has had regard to the report of the Council’s Interim Chief Finance Officer (Section 151 Officer) (Appendix A) as to the robustness of the estimates made for the purposes of the calculations of the budget in making the calculation of its budget requirement confirming the robustness of the Budget estimates and the adequacy of the financial reserves, noting in particular their warning about the forecast deficits and the lack of Financial Sustainability over the period 2026/27 to 2029/30, as required by Section 25 of the Local Government Act 2003;

In respect of the General Fund Revenue Budget 2025/26

b.         Having considered the detailed Equalities Impact Assessments Appendix L, approve the Savings and Income generation plans outlined in Appendices B(i) B(ii) and B(iii).

c.          Approve the additional funding for new Growth requirements set out in Appendix C.

d.         Approve the General Fund Net Revenue Budget for 2025/26 of £622.089m and the individual Executive and Service Directorate Budgets for 2025/26 as outlined in Appendix D.

e.          Note the MTFP Movements set out in Appendix E from the report that was presented to Executive in October 2024.

f.           Approve the MTFP for the next five years set out in Appendix F and the MTFS 2025/26 – 2029/30 Strategy Document set out in Appendix G.

g.         Approve the changes to the Fees and Charges schedule for 2025/26 set out in Appendix H.

h.         Note the Specific Revenue Grants Schedule 2025/26 set out in Appendix I

i.           Note the Parking Account for 2025/26 set out in Appendix K

j.           Note the MTFP Cumulative Equalities Impact Assessment set out in Appendix L

k.          Note the 2025/26 Budget Consultation Feedback set out in Appendix M

l.           Note and agree that the 2025/26 Budget had been balanced. The budget includes £43.000m of Exceptional Financial Support from MHCLG in the form of a Capitalisation Direction which enabled operational expenditure to be capitalised as set out in Appendix AA and Appendix D.

m.        Note and accept the conditions set out in the Minister’s ‘minded to approve’ Exceptional Financial Support letter dated 20 February 2025 set out in Appendix A, Annex A(i), that Somerset Council would need to accept and fulfil in order to secure the Capitalisation Direction of up to £43.000m.

In respect of the Dedicated Schools Grant (DSG)

n.         Note that the forecast spending on the Dedicated Schools Grant, set out in Appendix J(i) was forecast to exceed the funding provided by government by £33.914m in 2025/26 and was projected to reach a cumulative deficit of £99.125m by 31 March 2026.

o.         Note the overall Dedicated Schools Grant allocation of £481.393m for 2025/26 and breakdown by block set out in Appendix J(ii).

p.         Approve the distribution of the  ...  view the full decision text for item 84.

The Deputy Leader and Lead Member for Finance, Procurement and Performance, Councillor Liz Leyshon, introduced the report which the Executive considered and endorsed at its meeting on 3 March 2025.

The report detailed the Council’s financial position and included several supporting documents which provided information on the following:-

·       Revenue Budget 2025/26

·       Capital Programme 2025/26

·       Treasury Management Strategy 2025/26

·       Council Tax Setting 2025/26

·       Medium Term Financial Plan and Strategy 2025/26 to 2029/30.

All of the above documents were part of the Council’s Budget and Policy Framework and formed part of its statutory responsibility in setting a Balanced Budget and Council Tax.

The Deputy Leader and Lead Member for Finance, Procurement and Performance highlighted the vast amount of work that had gone into the report and supporting documents and the serious position the Council faced.  She thanked all officers who had worked on the report and for their continued support.

During the discussion, the following points were raised:-

·       The Leader of the Council thanked the Lead Member for Finance, Procurement and Performance for all her hard work on the budget and her knowledge and understanding of the financial position faced by the Council.

·       Councillors wanted a sustainable future for Somerset and to ensure that the right provisions were in place for the residents of the county.

·       Councillors raised serious concerns on the funding model used by Central Government and called for an urgent reform of the system.

·       The Leader of the Conservative Group advised that they had not submitted an alternative budget due to the tight timescales for the budget cycle of meetings along with the lateness of the reports.

·       Councillors raised concerns on the critical financial situation which included two statutory recommendations from the external auditors, the lack of pace on the Transformation Project and the low Council Tax base.

·       Councillors raised concerns on the increased fees and charges along with the disposal of commercial assets and that this was not a sustainable option for the future.

·       Councillors raised concerns on the parking proposals contained within the report and that mitigations would be required in certain areas.

·       Councillors raised concerns on the reliance on redundancies, devolution of services to the Parish Councils and the cutting of Council Tax support and services to be able to produce a balanced budget.

·       Councillors had hoped that the budget would provide some certainty and assurance for the medium term, but sadly they did not believe that had been achieved.

·       Councillors queried when the letter from the Ministry for Housing, Communities and Local Government (MHCLG) would be published.

The Section 151 Officer advised that officers were carrying out some fact checking ahead of responding to the Minister and that the Council were not permitted to publish until the MHCLG had.

·       Councillors highlighted that although there were concerns on the budget, there had been no other suggestions put forward on how to avoid a Section 114 Notice.

·       Councillors wanted assurance that work would be done to continue to review services and the budget over the upcoming year.  ...  view the full minutes text for item 84.

To consider the recommendations from the Leader and Executive.

Councillor Bill Revans proposed the recommendations, which were seconded by Councillor Mandy Chilcott.

Having been duly proposed and seconded, the Council Resolved to:-

      i.         endorse the principle of Somerset Council working with partner local authorities (including Dorset, Wiltshire and BCP Councils) to secure a devolution settlement for the Wessex area and the ambition of the partners to be part of Government’s Devolution Programme, while remaining open to working with other authorities outside the Wessex area where it was demonstrably beneficial to Somerset.

     ii.         accept that Wessex had agreed to be available to Swindon Borough Council and North Somerset Council should they wish to join Wessex at a later stage.

    iii.         recognise that the geographies of authorities within the Devolution Programme were identified as areas for the creation of a new MSA.

   iv.         note the potential opportunities to promote economic growth, skills and prosperity alongside the financial benefits and strategic and operational implications for Somerset Council arising from a devolution settlement and the creation of a MSA.

(NB – recommendation (i) amended at the meeting)

The Leader of the Council and Lead Member for Governance and Communications, Councillor Bill Revans, introduced the report which the Executive considered and endorsed at its meeting on 3 February 2025.

The report detailed the incentives contained within the devolution white paper released in December 2024. 

The Leader of the Council had joined with Leaders from Wiltshire, Dorset and Bournemouth, Christchurch and Poole Councils to indicate interest in the creation of a mayoral strategic authority on the basis that it was the most appropriate approach due to the shared economic and wider strategic interests. They also indicated that they would be open for other authorities to join the proposal.

During the discussion, the following points were raised:-

·       Councillor Diogo Rodrigues proposed the inclusion of some additional wording to recommendation i, which was seconded by Councillor Mandy Chilcott:

-      while remaining open to working with other authorities outside the Wessex area where it was demonstrably beneficial to Somerset.

The proposal was accepted by Councillor Bill Revans and became part of the substantive recommendations.

·       Councillors queried whether the recommendations had received cross party support.

The Leader of the Council advised it was similar proposal to the previous Government’s devolution proposals, which had received cross party input.  The Chief Executive gave clarification and spoke on the differences between national and regional powers.

·       Councillors raised concerns that the recommendations had not received adequate scrutinisation due to the restricted timing of the committee meeting.  They requested that the report be taken back to the Scrutiny Committee for further debate, preferably ahead of the proposal being submitted to Government.

·       Councillors queried what other steps had been explored.

The Leader of the Council advised that he had explored other options with the other Leaders at the Local Government Association conference.

·       Councillors queried where the funding would come from to support the recommendations.

The Chief Executive advised that they had not been given clarity on the funding at this stage of the process.

Councillor Bill Revans proposed the recommendations, which were seconded by Councillor Mandy Chilcott.

Having been duly proposed and seconded, the Council Resolved to:-

      i.         endorse the principle of Somerset Council working with partner local authorities (including Dorset, Wiltshire and BCP Councils) to secure a devolution settlement for the Wessex area and the ambition of the partners to be part of Government’s Devolution Programme, while remaining open to working with other authorities outside the Wessex area where it was demonstrably beneficial to Somerset.

     ii.         accept that Wessex had agreed to be available to Swindon Borough Council and North Somerset Council should they wish to join Wessex at a later stage.

    iii.         recognise that the geographies of authorities within the Devolution Programme were identified as areas for the creation of a new MSA.

   iv.         note the potential opportunities to promote economic growth, skills and prosperity alongside the financial benefits and strategic and operational implications for Somerset Council arising from a devolution settlement and the creation of a MSA.

Recommendations from the Chief Executive.

Councillor Theo Butt-Philip proposed the recommendations, which were seconded by Councillor Bill Revans.

Having been duly proposed and seconded, the Council Resolved to:-

2.1Approve the redundancy costs for the 12 posts as set out in Appendix A, as Full Council approval was required for costs that exceeded £100,000.

2.2Delegate authority to the Chief Executive to agree the final date of dismissal and the final redundancy packages, noting that such settlements would not exceed contractual redundancy pay or the payment required under statute to the Local Government Pension Scheme.

The Chief Executive, Duncan Sharkey, introduced the report which detailed the proposed dismissals by reason of redundancy in relation to employees who occupied posts that it was proposed to delete from the Council’s structure as part of the Workforce Restructuring Programme where the costs exceeded £100,000.

During the discussion, the following points were raised:-

·       Councillors requested assurance that proper handovers would be carried ahead of any officers leaving the Council.

·       Councillors queried what assurances were in place to ensure that the posts would not be filled in the future.

The Chief Executive advised that the posts would not be reappointed to, however, there were likely to be more restructures in the future, the details of which were unknown.

·       Councillors queried if there were any delays in the redundancies being made.

The Chief Executive advised that there was flexibility in the notice periods due to the changes of date for the meeting to approve them.

Councillor Theo Butt-Philip proposed the recommendations, which were seconded by Councillor Bill Revans.

Having been duly proposed and seconded, the Council Resolved to:-

2.1Approve the redundancy costs for the 12 posts as set out in Appendix A, as Full Council approval was required for costs that exceeded £100,000.

2.2Delegate authority to the Chief Executive to agree the final date of dismissal and the final redundancy packages, noting that such settlements would not exceed contractual redundancy pay or the payment required under statute to the Local Government Pension Scheme.

To consider the recommendations from the Independent Remuneration Panel.

Councillor Bill Revans proposed the recommendations, which were seconded by Councillor Mandy Chilcott.

Having been duly proposed and seconded, the Council Resolved to:-

      i.         Thank the Panel for its report and recommendations set out in Appendix 1;

     ii.         Consider the Panel’s recommendations prior to determining the Scheme of Members’ Allowances 2025/26 and the draft Scheme of Members’ Allowances 2025/26 (set out in Appendix 2);

    iii.         Authorise the Monitoring Officer to finalise and publish the Scheme of Members’ Allowances 2025/26 to reflect the Council’s decision.

The Leader of the Council and Lead Member for Governance and Communications, Councillor Bill Revans, introduced the report that detailed proposals put forward by the Somerset Independent Remuneration Panel for the Members Scheme of Allowances 2025/26.

The Monitoring Officer advised that all councillors present at the meeting had signed a form for dispensation to be able to take part in the debate and vote on the item.

Councillor Bill Revans proposed the recommendations, which were seconded by Councillor Mandy Chilcott.

Having been duly proposed and seconded, the Council Resolved to:-

      i.         Thank the Panel for its report and recommendations set out in Appendix 1;

     ii.         Consider the Panel’s recommendations prior to determining the Scheme of Members’ Allowances 2025/26 and the draft Scheme of Members’ Allowances 2025/26 (set out in Appendix 2);

    iii.         Authorise the Monitoring Officer to finalise and publish the Scheme of Members’ Allowances 2025/26 to reflect the Council’s decision.

To consider and note the report of the Leader and Executive.

The Leader of the Council, Councillor Bill Revans, introduced the report which included a summary of the key decisions taken by the Leader and Executive between 6 December 2024 and 3 March 2025.

The Council noted the report.

Councillors are required to give notice of any such question in writing to the Monitoring Officer no later than 5pm providing three clear working days’ notice before the meeting, in order to be guaranteed a written response. For this meeting the deadline is 5pm on Thursday 27 February 2025.

Details of any questions received will be circulated to all councillors prior to the meeting and made available at the meeting and on the Council’s website.

Any question received after 5pm on 27 February 2025 and no later than 9am 5 March 2025 may only receive a verbal response at the meeting or the Chair may direct them to the appropriate committee or the next meeting of the Council.

Questions may be asked without notice and councillors are limited to one minute to put their question. Supplementary questions can only be asked with the consent of the Chair. The Chair will determine the number of questions asked without notice and the total time allocated for this item.

Councillors are reminded of the opportunities outside of the Council meeting to raise matters directly with the Leader of the Council, Executive Lead Members or Directors. In addition, Councillors can raise questions at meetings of the Executive.

The Chair of Council, Councillor Mike Best, invited questions from the councillors for the Leader and Executive.

Member questions were received from:-

·       Councillor Diogo Rodrigues – Planning Enforcement

·       Councillor Diogo Rodrigues – Employees working remotely, outside of the UK

·       Councillor Sue Osbourne – Exceptional Financial Support/Capitalisation Direction

·       Councillor Sue Osbourne – Planning Service/production of a Local Plan

The questions and responses provided are attached to the minutes in Annex B.