Hampshire County Council abandons 15% tax hike after government rejection. Focus shifts to a smaller proposed 4.99% increase awaiting approval.
Senior council members rejected the big increase and now suggest a smaller, 4.99 percent rise. The full council must still agree to this plan. The rejected plan asked for even bigger rises later, wanting fifteen percent in 2025/26 and then ten percent in 2026/27, which would negate the need to use reserve funds.
That plan would have made lots more money, producing £83.5 million in 2025/26, shrinking the budget gap after that. Only a few places got approval for their plans, presenting the council’s plan with a choice: trigger a vote or stay within limits.
The deputy chief thought a vote was best, arguing that a low increase meant more risk. He feared bankruptcy before 2027 due to a lack of available money then. However, the council leader suggested a smaller increase of only 4.99 percent more tax.
He shared at a meeting on February 5 that they asked people about tax and people clearly opposed very high tax. He explained that nobody wants to raise taxes.
A vote would cost the council money, exceeding two million pounds. Losing the vote means even more costs, requiring them to re-bill people at a cost of £400,000. Referendums cost extra, even with elections.
People likely won’t support a tax increase, a step the council does not want to take but feels forced to consider. The council suggests raising tax by 4.99 percent. The full council votes on February 13; if they approved, it makes £876 million in 2025/26.
