Why is Hampshire considering a 15% council tax rise?

Council tax in parts of Hampshire could go up 15% in April.

The county council has applied to the government for exceptional financial support because of budget pressures.

In November, the council said its budget gap - what it needs to spend to provide services in 2025/6 - is forecast to be £182m.

Demand for services is going up particularly in adult and children's social care and education of children with extra needs.

But costs are also rising.

Increasing council tax by an extra 10% above the normal cap could generate an extra £84m.

The council says it can no longer make savings in what it spends and still deliver statutory responsibilities in future.

Statutory responsibilities are things councils have to do, like caring for vulnerable children and adults, dealing with rubbish and maintaining roads.

No, several others around the country have also asked government for the ability to raise council tax without a referendum, including Bristol, Bradford and North Somerset.

Last year, Southampton City Council asked for exceptional financial support, but that enabled the council to sell off assets and buildings to raise money, rather than raising council tax above the normal limit.

In previous years Hampshire has raised council tax by the maximum 4.99% (2.99% plus a 2% extra for adult social care).

It is asking for the option to raise it by up to 15% but says it could be less, but is likely to be double digits.

Hampshire County Council attempted to save money by cutting services this year, including closing some household waste recycling centres and cutting school crossing patrols but many of the plans were rejected by voters.

Most of Hampshire - except Southampton and Portsmouth - has two-tier local government.

Hampshire is the county council with eleven districts and borough councils underneath, including Hart, New Forest, Havant and Winchester.

It is responsible for education, social care, strategic planning, transport, culture, dealing with collected waste and public safety.

Districts and boroughs set their own council tax and would not be increasing their part by 15%.

They collect rubbish and recycling and are responsible for housing, planning applications and recreation.

Southampton and Portsmouth are unitary authorities who provide all services.

These are called reserves in local government. You can only spend them once.

Since 2022, the council has drawn £83m from its useable reserves.

It intends to withdraw more to balance this financial year and will need to use some for next year.

But there is a budget gap predicted for the following year too and leader Nick Adams-King says there is not enough in the reserves to cover that.

Reserves are there so councils can invest in transformation projects for the future or respond to unexpected events, like the pandemic.

Hampshire is involved in a devolution bid with Southampton, Portsmouth and Isle of Wight councils.

Devolution would create a combined strategic authority to redistribute power from Whitehall to a mayor with money to spend on projects in the county.

Alongside this, there is likely to be a reorganisation of local government and the creation of unitary authorities all across Hampshire.

That would mean different powers and new budgets.

Council leaders have repeatedly asked for more freedom to raise money locally and be given powers to decide where to spend it.

That could help with financial pressures but it will not be sorted in time for this financial year.

Hampshire County Council finds out within the next fortnight if it has been granted exceptional financial support and if it is on the devolution priority programme.

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