Somerset Council has appointed Lizzie Watkin as its new finance chief, effective July 31, following a government order to urgently address its finances after a damning independent report. Watkin, who previously served as corporate director of resources and section 151 officer at Wiltshire Council, also held finance leadership roles at Taunton Deane Borough Council and South Somerset District Council, and previously worked for Somerset County Council as strategic finance manager.
Government Best Value Notice Issued
The appointment comes after the Ministry of Housing, Communities and Local Government (MHCLG) issued a best value notice last week, piling pressure on the council to sort out its financial issues. The notice followed an independent review by the Chartered Institute of Public Finance and Accountancy (CIPFA), which identified numerous concerns about leadership and organisational culture, branding financial management “weak” and awarding the council one out of five stars.
The local authority is hundreds of millions of pounds in debt, largely from external borrowing via the Public Works Loans Board, part of the Treasury. Watkin will be responsible for ensuring the council balances its books at its next budget in February 2027.
Council Response and Progress
James Blythe, deputy director of local government stewardship and interventions, wrote to chief executive Duncan Sharkey last week, stating ministers “remain concerned” about the speed of financial turnaround, though some progress has been made. The council must provide “regular written updates” to MHCLG, with the notice initially reviewed in July 2027.
Deputy leader and lead member for finance Liz Leyshon 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.”
Council Leader Acknowledges Challenges
Council leader Bill Revans admitted the notice was a “serious step” but said Somerset Council would respond “positively and constructively.” He noted: “This does not come as a surprise. We have been transparent about the financial concerns and pressures facing this council and the scale of the challenges we face.” Revans highlighted an improvement advisory board already established to provide oversight, which will unlock support from the government and Local Government Association, though no additional funding is involved. “We remain completely responsible for making decisions locally and delivering services for the people of Somerset,” he added.
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 £1 billion within five years if current patterns persist.
