Authority's 15% council tax rise rejected by government

The government has told Hampshire County Council it cannot increase council tax by 15% for 2025/26.

The county council had asked for permission to raise its main source of income above the permitted 4.99% because of budget pressures.

Later on Tuesday, councillors on the cabinet will consider the options for the council, which include drawing on reserves.

But leader Nick Adams-King said that was "like remortgaging the house to pay for groceries, it's not sustainable in the long term."

He added the situation had worsened this financial year, partly because Hampshire County Council faced a rise of £10m in costs due to increasing National Insurance contributions.

Support from the government has only covered £7m, adding £3m to the budget gap, the difference between income and spending.

In November, that was forecast to be £182m.

"I am not going to put vulnerable people at risk. If that means we say to the government we cannot operate any longer and they have to give us money, that's where we'll be," Mr Adams-King added.

Deputy prime minister Angela Rayner said in a written ministerial statement that a record number of councils had engaged with the government about support to help them set their budgets and asked for additional council tax increases.

Six were agreed but at a lower rate than requested.

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

In Monday's statement, Rayner added: "We recognise the importance of limited increases in helping to prevent these councils falling further into financial distress – but we have been clear this must be balanced with the interests of taxpayers."

Mr Adams-King said he was "mystified" by the decision, saying local government money was being sent to Labour councils in the Midlands and North.

He added the situation the council had been put in was "intolerable" and a "mess" but said he wanted to reassure residents that councillors and council staff would do all they could to provide excellent service to the people of Hampshire.

You can follow BBC Hampshire & Isle of Wight on Facebook, X (Twitter), or Instagram.