Hampshire County Council Faces Financial Crisis

The Hampshire County Council is currently facing a severe financial crisis, with a projected budget deficit of £56.7m by 2025/26. This deficit has sparked discussions about potential cuts to public services in an effort to alleviate the financial strain and avoid declaring bankruptcy.

A comprehensive review is currently underway to identify areas where cuts can be made, as the current savings proposals are insufficient. The looming deficit has been primarily attributed to rising costs related to adult social care, school transport, and special educational needs.

To address the budget shortfall, the council has proposed a series of cuts and changes to various services. Some of the proposed measures include cuts to public transport, turning off street lights, and reducing staffing at headquarters. Additionally, the council has sought urgent financial assistance from the government to avert what they have described as a “disaster.”

While the council has identified most of the additional funding required to bridge the gap for 2024/25, there is still a need for £2.4 million. Even if all savings proposals are implemented, there would still be a recurring gap of £41.6 million in 2025/26.

In response to the financial crisis, the council is exploring options for further service changes or reductions, as well as seeking solutions for service reductions that would only be implemented in the event of a section 114 notice. This notice would effectively declare the council bankrupt and could lead to government-appointed commissioners overseeing its operations.

Despite the challenges they are facing, the council remains focused on finding a viable solution to address the budget shortfall. They are committed to exploring all available options and are actively engaged in ongoing discussions to reach a resolution.

The council’s Cabinet is scheduled to discuss the financial crisis on Tuesday. These discussions will be crucial in determining the next steps for the council and in charting a course forward in the face of this unprecedented financial challenge.