The Chartered Institute of Public Finance and Accountancy (CIPFA) carried out an independent review of the council’s finances, with its findings being made public before a meeting of its audit committee on May 28.
The report identified numerous concerns around the council’s leadership and organisational culture, branding its financial management “weak” and awarding the council one out of a possible five stars.
The Conservatives (which make up the official opposition) have lambasted the council, slamming it for not proceeding with its transformation programme more rapidly and staying they would be “cleaning up the Liberal Democrats’ financial mess” after next year’s local elections.
The ruling Lib Dems responded that they had worked hard to bring spending under control, blaming the Tories for decisions taking before the new unitary authority was created and claiming that “all alternative routes would have led to effective bankruptcy”.
The CIPFA review produced a number of concerning conclusions about the council – including:
- Its leadership had “not yet proven” that it could deliver stronger financial management
- Its dependence on a third consecutive year of exceptional financial support from central government is simply “deferring the changes that are needed” for long-term stability
- Its transformation programme is not moving quickly enough, with “insufficient evidence” to suggest it will deliver the changes required
- Its “inconsistent” approach to “budget ownership and accountability”, including over the failure of different departments to deliver savings
- Its “incomplete” cultural consolidation, with parts of the council still operating on previous models (e.g. planning still working on several different systems)
Councillor Dawn Denton, shadow portfolio holder for finance, said: “This is one of the most serious independent assessments Somerset Council could receive.
“After four years of Lib Dem control and three years running the new unitary authority, the council has been given just one star out of five by CIPFA, the UK’s leading public finance body.
“Time and again independent organisations have warned that the council is not moving quickly enough to secure its financial future.
“The report repeatedly identifies a lack of pace, a lack of accountability, weak financial management, weak controls and a failure to embed the cultural change needed to turn the organisation around.”
Opposition leader Councillor Diogo Rodrigues said the CIPFA report showed that the Lib Dems could not be trusted with Somerset Council’s finances – stating it should act as a warning ahead of the local elections in May 2027.
He said: “Somerset taxpayers have already seen more than £19m spent on consultants and transformation support in just three years – yet CIPFA has still concluded that financial management is weak and that transformation is not moving at the pace required.
“Residents are entitled to ask what they have received in return. Council tax has risen sharply, services continue to struggle, and Somerset remains dependent on emergency financial support and the sale of council assets to balance the books.
“We have cleaned up the Lib Dems’ financial mess before, and we are prepared to do so again.”
Council leader Bill Revans responded that the blame for the council’s difficult financial position lay largely with the previous Tory administration, and that he was doing everything possible to put Somerset Council in a more financially sustainable position.
He said: “We’ve been clear throughout that Somerset Council has a difficult inherited financial position from Somerset County Council.
“This rating reflects the decision by that Conservative administration to approve the use of MS Dynamics for our financial systems, in spite of repeated warnings not to do so.
“We have worked hard to reduce the deficit from an enormous £123m (when we declared a financial emergency) and we are now in recovery, working towards a budget without exceptional financial support in 2027/28.
“All alternative routes would have led to declaring effective bankruptcy, double digit council tax rises and expensive commissioners running the council, asset stripping Somerset and slashing services.”