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Hampshire County Council sets out financial plans for ‘bare minimum’ services

HAMPSHIRE County Council is laying out its financial plans ready to allow for the “bare minimum” of services across the county – while axing others – in a massive effort to cut its costs.

If approved, proposals include turning off some street lights at night, new parking charges and cutting back on day-to-day repairs such as dealing with potholes or drainage cleansing, writes Natalia Forero of the Local Democracy Reporting Service.

It is also looking to increase council tax and using its reserves to pay for services as it looks to make savings of £132 million to balance the budget by 2025/26.

Hampshire County Council needs to save £132 million
Hampshire County Council needs to save £132 million

The initiatives will impact all sectors with cuts, reductions to “bare minimum levels” – what councils are legally required to provide – fee increases, and an in-depth change in how services are offered.

Options include new country parks membership alternative, increasing parking charges at countryside sites, on-street parking charges in new locations and reviewing charges at existing locations, introducing new charges for parking at off-street and countryside locations, increasing ceremony fees, expanding moving traffic monitoring sites or keeping street lights off at night on some non-residential roads among others.

Changes could also include pausing the Operation Resilience programme, which involves dealing with potholes, replacing road markings, repairs to signs and drain cleanng, meaning that these activities and larger-scale structural maintenance, among others, would only be undertaken on safety grounds, or when major or widespread defects are identified. With this change, the council estimates to save £7.5 million.

In addition, the county council plans to reduce and change some services, especially so-called non-statutory services. Proposals include the loss of school crossing patrols, the end of funding to community transport services, the potential financial reduction support for the cultural sector, reductions in road maintenance, or the review of outdated policies such as “winter service provision”.

According to the budget consultation information pack, the proposed plans involve raising council tax by over 4.99%. It states that for every 1% increase in council tax, the county council would receive an income of £7.8 million. However, a public referendum would be required before implementing this change.

At the full county council meeting on 28th September, leader of the council, Rob Humby, said: “The challenges that we face are the same as other local authorities. High inflation, high demand for social care services, and more than a decade of underfunding from the central government. As a result, council budgets are close to breaking point.

“We have warned ministers that this is an unsustainable situation. This month, the Birmingham City Council issued a Section 114 notice. If reports are to be believed, plenty of other councils will be forced to consider doing the same in the next year or two.

“Hampshire is in a better financial position than most county councils. While our finances are stable until 2025/26, we need a central government to fundamentally change the way local services are funded or reduce what councils are legally required to deliver.”

At a decision day on 25th September, Lib Dem Councillor Adrian Collect said: “The direction of travel that the county council has been forced through not just during the 13 years of austerity and the £640 million by which our budgets have already been reduced, it’s a very worrying direction that we’re going.

“They aren’t easy options for making the savings that are required of us, the £132 million that has been identified over the next two years plus we still have £71 million of previous savings that have got to be delivered, £200 million more to come out of our budget.

He added: “I hate the direction of travel, but I really think that the most important thing is lobbying the government to come up with the solution for the local government before it’s too late, because it’s already too late and it’s going to get worse over the next couple of years.”

Hampshire County Council deputy leader, Councillor Roz Chadd, said: “None of us come into this role to make these decisions. They are not nice decisions... but we are facing a £132 million budget gap in 2025/26, and we do need to do something, be proactive and working through that in a managed way.

“We will continue to lobby central government and highlight the concerts of local authorities going forward. In recent weeks, we have seen a few other councils having to declare financial difficulties, and I’m thankful we are not in that position because we have that forward financial planning.”

Based on the public consultation held during the summer in which HCC received 2,935 responses, 60% of respondents agreed with the county council’s financial strategy, compared with 45% in 2021.

An important majority also agreed that changes to council services and structures should be considered to help balance the budget. Notably, 54% of responders supported increasing existing service charges, and 47% agreed to introduce new charges for currently free services.

However, 63% of the 2,935 respondents opposed the idea of reducing services.

Hampshire County Council has identified that a total of £90.4 million could be generated through the proposals, of which £75 million is expected to be delivered by 2025/26, leaving an unmet budget gap of £57 million in 2025/26.

Savings proposals by services:

Hampshire children’s social care

Current service budget: £241.9 million

Estimated savings target: £1.5 million

Library service

Current service budget: £9.9 million

Estimated savings target: £0.5 million

Younger adults

Current service budget: £209.8 million

Estimated savings target: £28.7 million

Older adults

Current service budget: £227.5 million

Estimated savings target: £14.1 million

Adult social care headquarters functions

Current service budget: £22.0 million

Estimated savings target: £5.0 million

Centrally administered grant funding

Current budget: £3.9 million

Estimated savings target: £1.9 million

Highways service – planned, routine, and reactive maintenance

Current service budget: £27.1 million revenue budget, plus £10 million transferred to capital works annually for Operation Resilience

Estimated savings target: £7.5 million

Highways – winter service provision

Current service budget: £6.5 million

Estimated savings target: £1 million

Street lighting

Current service budget: £10.55 million

Estimated savings target: up to £1 million

School crossing patrols

Current service budget: £1.1 million

Estimated savings target: £1.1 million

Transport services

Current service budget: £2.7 million (local bus subsidies and community transport)

Estimated savings target: £1.7 million

Waste services – household waste recycling centres

Current service budget: £2.2 million (excludes disposal costs)

Estimated savings target: £1.2 million

The final decision will be taken at the full county council on 9th November.

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