Since becoming Leader in May this year, Councillor Adams-King has repeatedly pressed Government to take action to enable councils to be more innovative, commercial and reform local services and therefore their financial positions, as demand and costs to deliver vital social care for growing numbers of vulnerable children and adults continue to soar.
At the meeting of the County Council’s Cabinet today (15 November 2024), Cabinet Members considered the Local Authority’s financial position over the next two years (2025/26 and 2026/27) and the prospect of formal talks that may be needed with Government to request permission to raise council tax for 2025/26 above the permitted 5% national threshold, unless Government’s anticipated Policy Paper on Local Government Finance provides necessary changes in the law and greater freedoms and flexibilities to help the Local Authority address the urgent financial pressures it faces.
Councillor Adams-King explained: “Like many councils nationally, our budget pressures may be considerable but what sets Hampshire apart is our solid track record of strong financial management and our determination and commitment to remain proactive in our efforts to tackle these challenges head-on - but we must have the support we need from the Government to do so.
“We have always been open and honest with the people of Hampshire about our finances. The exceptional budget pressures we face are not of our making - namely unprecedented demand for local services, particularly across social care and services for children with special educational needs and disabilities, as well as rising costs. The report we have considered today is a snapshot in time which warns of a stark financial challenge that potentially lies ahead in two years’ time. We continue to do everything in our power to address this recurring budget gap - now anticipated to rise to £182 million from 2025/26 onwards. We have already identified a substantial part of this amount through our recent decisions around savings, however there is much more still to do.
"We are looking again within our own organisation, working more closely with our district, borough and parish council colleagues, and exploring every opportunity to find efficiencies, reduce costs and increase income, but we recognise that these steps alone, won’t be enough to keep pace with the ongoing pressures in those key services we must deliver by law."
Providing further context, he added: “Alongside councils up and down the country, we were hoping Government would announce a significant increase in funding in their recent Budget, to help with social care pressures, together with some extra freedoms and flexibilities over council tax setting and raising income. Frustratingly, this didn’t happen, with only an extra £8 million or so for Hampshire from the additional £1.3 billion earmarked for local government overall.
“The Government needs to be mindful that demand for services like social care and special educational needs and disabilities continue to soar in Hampshire. They need to be properly funded, and the council needs greater powers on how we prioritise our spending rather than having to deal with Government rules.
“With little prospect of any more money in the short-term, we are leaving no stone unturned in our work to tackle the challenges ahead. While we pursue further dialogue with Government, we remain focused on our core purpose; caring for our most vulnerable residents - evidenced by the further commitment set out in today’s report, to employ more social workers to protect and support the growing number of children at risk of harm in the county.”