Council tax 4.99% hike approved

A council tax rise of almost 5% has been approved by Hampshire County Council.

The move will see the county council raise £876m, but it will have to draw £68.2m from reserves to close the 2025/26 budget.

Council leader Nick Adams-King said it was a "necessary increase" to help tackle the continued pressure on the council's budget.

The authority had asked the government to allow a 15% rise, but was refused permission.

It means a band D household will pay £1,609.83, an increase of £1.47 per week, of which 2% is specifically for adult social care.

This amount does not include the amount households will also pay to their borough district council, the police, fire authority and any parish councils.

The Conservative-run council had asked the government to allow a 15% increase in council tax but the request was turned down earlier this month.

Hampshire was told it would need to hold a referendum if it wanted to increase above 4.99%.

It means that after 2025/26, the council expects to be left with its pot of reserves holding £31.8m.

Mr Adams-King said that by 2026/27, the council may be talking about section 114 – effectively declaring bankruptcy as it may not be able to deliver a balanced budget as it is legally required to.

He said the council tax increase had been an "incredibly difficult decision"

"However, this increase ... is essential to help us ensure that we can continue to deliver core services to those people who rely on the support of the county council each and every day – the children at risk of harm, abuse and neglect, our growing older population, and children and adults with disabilities and additional needs," he added.

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