Somerset Conservatives have said a damning independent review by the Chartered Institute of Public Finance and Accountancy (CIPFA) exposes a fundamental failure of leadership by the Liberal Democrat administration after Somerset Council was awarded just one star out of five for its financial management.
The review concluded that financial management at the authority is "weak", with CIPFA identifying serious concerns around leadership, accountability, financial planning, internal controls, organisational culture, transformation and the council's continued reliance on government support.
Councillor Dawn Denton, Opposition Lead Member for Finance at Somerset Council, said:
"This is one of the most serious independent assessments Somerset Council could receive. After four years of Liberal Democrat control and three years running the new unitary authority, Somerset Council has been given just one star out of five by CIPFA, the UK's leading public finance body.
This is not the Conservative Party saying Somerset Council has failed to get a grip. CIPFA is saying it. The Local Government Association have said it. External auditors have said it. Government ministers have said it. Time and again independent organisations have warned that Somerset Council is not moving quickly enough to secure its financial future."
The report states that Somerset Council's financial management is "weak", that leadership capacity to build a more robust approach to financial management is "not yet proven", and that transformation is not currently delivering at the pace required to secure long-term financial sustainability.
Councillor Denton continued:
"CIPFA is clear that the council understands the challenges it faces. The problem is that it is still failing to deliver the solutions.
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."
The review found:
• Financial management across Somerset Council is "weak" and has been awarded an overall one-star rating.
• Leadership capacity to deliver stronger financial management is "not yet proven".
• The council remains dependent on Exceptional Financial Support from Government, with CIPFA warning that this is simply "deferring the changes that are needed".
• Transformation is not moving quickly enough, with CIPFA stating there is currently insufficient evidence to be confident it will deliver the changes required.
• Budget ownership and accountability remain inconsistent across the organisation.
• Internal controls, financial systems and core financial processes require significant improvement.
• Cultural consolidation following local government reorganisation remains incomplete, with parts of the council still operating using former council approaches.
• Accountability for failing to deliver savings and transformation projects is too weak.
• Staff reported "financial fatigue" within the organisation.
Councillor Diogo Rodrigues, Leader of the Conservative Opposition, said the findings raise questions about the millions of pounds spent on transformation activity and consultancy support since the new council was created.
"Somerset taxpayers have already seen more than £19 million spent on consultants and transformation support in just 3 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.”
The Opposition Leader said the report should act as a warning ahead of the May 2027 local elections.
"The Liberal Democrats cannot be trusted to run Somerset Council's finances. This report proves it.
The Conservatives believe Somerset Council can recover, but that requires stronger leadership, greater accountability, proper budget ownership, a relentless focus on value for money for residents and a clear plan to restore financial stability.
We have cleaned up the Liberal Democrats' financial mess before, and we are prepared to do so again.”
