Kent and Hampshire councils voice finance concerns to government

The leaders of two county councils are calling for urgent financial help from the government to help them avert a "disaster".

A projected £50.6 million black hole in Kent County Council's (KCC) budget has led to fears of tax rises and frontline service cuts.

Meanwhile, Hampshire County Council (HCC) is expecting a £200m budget black hole in the next four years.

The government said it was working with councils to over inflation issues.

In a joint letter to the prime minister, chancellor and home secretary, the councils outlined the "drastic budget implications" they are facing.

KCC leader Roger Gough said additional funds raised through a rise in council tax and business rates "barely" covers the costs of inflation.

"This leaves major growth, particularly in adults' and children's social care, totally un-funded," he said.

"This is not a medium-term problem that can be fixed with more one-off handouts to keep the sector limping along, it needs fundamental changes to the whole system of local government funding.

"Without a major change either in the way these two services are funded, or in our legal obligations, I suspect that large parts of upper tier local government will face collapse."

Budgets cuts in Hampshire included a decision to scrap a school transport scheme for children with special needs, in a move set to save the council £986,000.

HCC leader Rob Humby said the council's budgets are "at breaking point".

"We cannot sit by and let two great counties sleep-walk into a financial disaster," he said.

Mr Humby said that even with drastic cuts to services, the local authority "won't be able to close our future budget gaps".

Mr Gough added: "We have a responsibility to the residents of Kent and Hampshire to do everything possible to protect the future of their important local services."

A spokesman for the Department of Levelling Up, Housing and Communities, said: "We understand that councils are concerned about the impact of inflation and we are working with them to understand how this will affect their budgets.

"This year, we have made available an additional £3.7 billion to councils to ensure they have the resources to deliver vital services, including an extra £59 million for Hampshire Council and an extra £75 million for Kent County Council. We will announce details on next year's financial settlement shortly."

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