ANGRY district councillors have ‘reluctantly’ agreed a deal with the government that will see them send more than £300,000 back to Westminster.

After discussions with the department for communities and local government, South Somerset council voted to accept the proposed settlement saying “under no circumstances would any authority be better off by rejecting the offer.”

The council has agreed to a proposal over Revenue Support Grants (RSG), and in the fourth year of the agreement, 2019/2020, SSDC will send back £330,000 which will then be redistributed to other local authorities – and leave the council with a negative figure.

The council may now have to make cuts to services, but SSDC hopes to off-set that by using reserves and balances.

An SSDC spokesman said: “Discussions with the department for communities and local government had made clear that all four years of the settlement must be accepted. The Minister for Local Government, Marcus Jones, has indicated he hopes to add more to the offer for those authorities that accept.”

The agreement came on the same day as the publication of South Somerset’s Efficiency Plan, which outlined savings including staff reductions.

Donna Parham, SSDC’s assistant director for finance and corporate services, acknowledged in her report the negative RSG in the fourth year will affect local council tax payers unfairly, but recommended acceptance on the grounds of financial certainty.

She said unexpected reductions usually meant the use of balances and reserves to avoid making snap decisions on cuts.

The efficiency plan also includes income generation, partnering with neighbouring Sedgemoor District Council, and management of procurement, assets and resources.

SSDC leader Ric Pallister said: “The council was given two choices by the government and neither was right or fair to tax payers. In deciding whether to take the four-year offer, members were faced with two wrong answers and it was with enormous reluctance we voted for financial certainty.

“Members of all parties were united in their condemnation of the impossible position the government had placed us in but finally the vote showed a solid, but very reluctant, majority to take the offer.

"This was on the basis that the government had made it clear that we would not be allowed to be financially better off if we refused. An all-party group met Marcus Jones, who was sympathetic but reiterated that the four-year offer would not be amended.”