Somerset Council has warned it is 'running out of money' to fund adult and children's social care.

It comes as the authority was forced for the second year in a row to draw on its reserves to pay for the service.

Agenda papers published ahead of the council's executive meeting on September 6 said the financial situation was "stark and challenging."

The council now projects it will overspend on the services - which it is legally obliged to maintain - by £21 million this year. It follows £18 million being taken from reserves and put into social care budgets.

Cllr Liz Leyshon, Lead Member for Resources and Performance and Deputy Leader of Somerset Council said: “Obviously repeatedly using the Council’s reserves to fund day to day care services cannot continue without putting the financial viability of the council at risk.  

“The national problems we warned about last year have not improved, if anything they are worse. The demand on social care continues to grow and inflation and interest rates have continued to rise. We now have a clear picture of the financial legacies of the five predecessor Councils, although there is much work still to be completed by the external auditors. 

 “The current and next two years will be particularly challenging until the benefits of transformation of services at the new Council can be realised.  After a decade of neglect, the Government has to address the future of council funding and how pressures, particularly on councils with social care responsibilities, are pushing many well-run Councils towards to a Section 114 notice.  

“Having already taken savings from the move from five councils to one council, we now have a transformation programme that will start to produce saving in two to three years. We are working well with the local NHS on integrating our care services.   

“Somerset looks poised to become Britain’s green energy powerhouse with Hinkley Point C coming on stream and the proposed new gigafactory, but the next two years will be very, very difficult. The Council’s challenge will be to make sure we are in a the right place to make the most of these opportunities, while taking care of those most in need.”  

Cllr Leyshon added: “We know that we will have to reduce some of our services to a statutory level and no more, yet we know that when residents pay their council tax, they rightly expect their Council to support such services as sport and leisure, arts, parks, and open spaces.

"We also need to maximise opportunities in economic development and look after our town centres. We will review our whole capital programme to ensure that we create a Somerset Council that is sustainable in the longer term.  

“This is a difficult task but one that we are committed to for the people of Somerset.”