County Council Cabinet to consider budget action to protect core services

Spending proposals for 2025/26, totalling £2.6bn, to ensure the County Council keeps delivering its fundamental pledge to serve Hampshire’s 1.4 million residents will be considered by the County Council’s Cabinet next week, as the Authority takes a step closer to deciding its annual budget from April

Jan 27 2025

At a meeting due on Tuesday 4 February, the Authority’s Executive Members will review spending proposals for the coming financial year which aim to deliver vital public services while supporting children and adults in Hampshire who are most in need.  

The pressure on Hampshire’s budgets remains at a record high. Like many councils nationally, Hampshire’s budgets can no longer stretch as far as they used to because of rising demand and costs in key areas such as social care for children and adults, as well as school transport for growing numbers of children with disabilities and additional needs. With no remedy announced by central Government in December’s Financial Settlement either, difficult decisions are needed around how to balance the annual budget for 2025/26 to ensure limited resources are prioritised to Hampshire’s core purpose, now and into future, to secure a more stable financial footing for the Authority.  

Within annual budget proposals being put forward to Cabinet for consideration, and later to the Full County Council on 13 February for a final decision, recommendations will also be made for further savings proposals to move the Council closer towards the delivery of just its core services. Some of these proposals will then be subject to public consultation this spring.  

Hampshire’s council tax precept is currently one of the lowest amongst county councils nationally, and news is expected imminently from Government on whether the County Council can increase council tax by a total of up to 15% from 1 April - 10% above the national 5% referendum limit. Therefore, Cabinet will also consider whether to increase council tax by the full requested amount of 15%. A council tax increase of this amount would equate to an extra £4.42 per week for a Band D property. 

Leader of Hampshire County Council, Cllr Nick Adams-King said: “We’re navigating our financial challenges with determination and rigour and our commitment to Hampshire’s residents remains unwavering throughout, and especially to those who need our help the most. For 2025/26 we will be able to achieve a balanced budget thanks to the robust financial measures we’ve taken to date, but with Government having announced no major changes to how councils are funded in the longer-term, we have been forced to look for more ways to drive out future savings ourselves, so we can keep balancing the books and prioritise the delivery of our core services to those most in need, which we must do by law.  

“For months now, I have tried to engage with the Government about our financial situation and I have asked for meetings to discuss a positive way forward, in partnership, to address the huge ongoing pressures on our budget from adult social care and special education costs.

“The County Council does not want to raise council tax above the 5% limit. We want to be given the tools to become more entrepreneurial and be given powers to decide where to spend and raise money. However, we are left with no choice but to consider increasing Council Tax above the referendum limit. 

“Hampshire County Council is well run. It has the second lowest council tax nationally. We seek this increase only due to the rising costs of social care, special educational needs and those increased costs and lack of funding from the Government. We have used our reserves to balance the budget so far, but this is not sustainable if we are to avoid a Section 114 notice by 2026/27.

“We fully appreciate that a proposed higher council tax rise would impact on residents who may already be struggling with household finances, and we would encourage them to seek advice about Council Tax Support Schemes in their area if the recommended increase is approved. What is clear though, is that a higher council tax increase would have a huge impact on Hampshire’s future financial sustainability and provide certainty to our most vulnerable residents who rely on our services, so this is something that we must consider responsibly in Cabinet and County Council. 

“Our ability to manage Hampshire’s money well has always been a key strength of the County Council and this was also the view endorsed by the independent panel of experts who challenged and supported us at the end of last year in our ongoing work to identify even more efficiencies. But beyond these proposed steps, they too recognise that we can no longer make enough savings and still deliver our statutory responsibilities in future. Subject to the agreement of the Full County Council next month, residents’ views will be invited on some of these latest savings options.”  

Alongside revenue spending plans for the next financial year, the County Council’s Cabinet will also receive capital budget proposals, with building and infrastructure projects totalling £1.167 billion from 2025/26 onwards - providing a huge boost to the local economy through jobs, skills and construction, as well as ensuring necessary assets are in place to provide services to the people of Hampshire now and in the future. 

The proposed programme includes: 
£188m investment in new and extended school buildings to provide more school places for children in Hampshire 
£166m for structural maintenance and improvement of roads and bridges 
£245m for Integrated Transport Plan schemes 
£107m to address condition-based enhancements to schools  
£50m for waste recycling infrastructure to meet legislative requirements 

Councillor Adams-King concluded: “Setting a balanced budget each year that aims to make the most of people’s money in the face of our profound financial pressures, and ensure we uphold our duty to residents now and into the future is a pledge we take very seriously. Our commitment remains to the most vulnerable in Hampshire who rely on our support each and every day, and we’re making every effort to reduce our spending to ensure we can protect the quality of our essential services and provide and protect the infrastructure needed for Hampshire to remain a strong and flourishing county for generations to come. This is no easy task, but one that we are dedicated to achieving, no matter how challenging or difficult our financial position may be.”