Somerset Council appoints new finance chief as government orders authority to sort finances

It comes after an independent report found numerous concerns

Somerset Council has appointed a new finance chief as it faces a government order to get its finances urgently in order following a damning independent report.

Lizzie Watkin will take on the role on July 31 following approval by full council. She has joined from Wiltshire Council, where she served as corporate director of resources and section 151 officer.

Ms Watkin previously worked for Somerset County Council as strategic finance manager and has also held finance leadership roles at Taunton Deane Borough Council and South Somerset District Council.

The announcement follows a ‘best value notice’ – a series of standards that ensure a council is providing value for money to local taxpayers – issued last week by the Ministry of Housing, Communities and Local Government which has piled pressure on the council to sort out its financial issues.

The notice was issued after an independent review of the council’s finances by the Chartered Institute of Public Finance and Accountancy (CIPFA).

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 local authority is currently hundreds of millions of pounds in debt, largely from external borrowing via the Public Works Loans Board, which is part of the Treasury.

Ms Watkin will now be responsible for ensuring the council can balance its books at its next budget in February 2027.

James Blythe, deputy director of local government stewardship and interventions, laid out the reasons for the notice in a letter to the council’s chief executive Duncan Sharkey last week.

Mr Blythe said ministers “remain concerned” about the speed at which the council is turning its financial situation around, despite acknowledging that some initial progress had been made.

The local authority must now provide “regular written updates” to MHCLG on its progress, and the notice will remain in place until further notice, being initially reviewed in July 2027.

Liz Leyshon, the council’s deputy leader and lead member for finance, said: “As we continue to drive improvement, transformation and long-term financial sustainability, Lizzie’s expertise will be invaluable in helping us build on the progress already being made and ensuring we continue to deliver the best possible outcomes for residents.”

Last week, council leader Bill Revans admitted the government notice was a “serious step”, adding that Somerset Council would respond “positively and constructively”.

“This does not come as a surprise,” he said. “We have been transparent about the financial concerns and pressures facing this council and the scale of the challenges we face.

“We have already established an improvement advisory board to provide challenge, support and oversight of our improvement journey. This will unlock welcome additional support from the government and through the Local Government Association – though this will not involve any money.

“We remain completely responsible for making decisions locally and delivering services for the people of Somerset.”

He added: “We know there is much more work to do to strengthen our finances, governance, transformation and service performance. While progress has been made, we have never been complacent and never will be.

“I have said for some time that the way local government is funded is broken. This does not diminish our responsibility to improve, and we accept that responsibility.”

Further reports on the council’s finances will be published in the coming months, including its initial budget proposal and planned changes to its council tax support scheme.

In June, it was revealed that Somerset Council’s overall debt levels could fall beneath £1bn within five years if current patterns persist.