An independent review by the Chartered Institute of Public Finance and Accountancy (CIPFA) has awarded Somerset Council an overall one-star rating for financial management out of a possible five, describing arrangements as "weak".
The review identifies concerns relating to financial planning, internal controls, accountability, organisational culture and the pace of transformation activity.
The CIPFA describes the council's 1 star status as: "minimal financial capability that can only react to events with short term solutions; basic accountability and stewardship remains a challenge."
The report also highlights inconsistent budget ownership, incomplete organisational integration following local government reorganisation and staff concerns around "financial fatigue".
Somerset Council has acknowledged the findings and will be expected to demonstrate progress against the review's recommendations.
The full report is attached.
It comes as the Council confirms that it has spent £18.9 million on consultants and external advisory support since becoming a unitary authority in April 2023.
The figure was revealed following questions about the council’s reliance on external support at a time when it has declared a financial emergency, is selling assets to pay for day-to-day spend and continues to face significant budget pressures.
Concerns have also been raised about whether this level of spending is delivering sufficient value for money for residents as households face higher council tax increases.
The interim Chief Finance Officer Clive Heaphy will remain in post until April 2027, at a cost of £291,000 after the council’s latest attempt to recruit a permanent replacement was unsuccessful. The Somerset County Gazette notes that he "will earn more than the Prime Minister over the next 12 months, while only working four days a week".
Before local government reorganisation, Sedgemoor District Council consistently passed independent external audit and maintained balanced local services without the serious financial concerns now being raised about Somerset.
