ItÕs as bad as the Poll Tax Ð that is the message from Hampshire County Council on the eve of their budget meeting next week.
The countyÕs share of the council tax bill Ð by far
the largest Ð is set to rocket by 15% just to maintain services following changes to the Government grant structure.
This will take the average, Band D, bill in Petersfield to £1,106.87, a total increase of over £136.
The countyÕs share will rise to £844.87, an increase of £110.20.
The county council estimates it will lose millions in government grant funding over the next three years after the government announced it would be redistributing cash to deprived urban areas in the North and the Midlands.
But leader of the county council, Ken Thornber, was adamant that there will be no cuts and no job losses.
He said this was the worse budget he had seen in 25 years but added Òit is pain today but we do not want pain tomorrow.Ó
Mr Thornber said: ÒWe believe we will have lost £45m in grant over the next three years. We have certainly lost £22m this year.Ó
But the county said that the worse-case scenario could be a loss of £80m over the next three years.
Mr Thornber said he has been forced to ask the people of Hampshire to Òdig into their pocketsÓ to make up the shortfall.
ÒWe are the fifth best county council in the country.
ÒWe take the view if we are to maintain these excellent
services there will be no cuts whatsoever.
ÒI have to ask the tax payers of Hampshire to dig into their pockets to provide the money we have lost.
ÒWe also have to protect against further losses next year and the year after.Ó
Jon Pittam, county treasurer, said: ÒIn terms of grant it is not even enough to fund the amount the Government expect us to put into schools. Everything else will fall onto council tax payers.Ó
Mr Pittam said that in terms of impact, the new changes are as radical as the introduction of the community charge.
Mr Thornber said he must give schools an extra £26m this year but the grant has only been increased by £23m.
But he said the countyÕs priorities remained schools and social services.
ÒOur budget meets inescapable pressures and legislative requirements. This includes £3.5m for older peopleÕs residential care to avoid bed blocking fines imposed by the Government.Ó
And Mr Pittam described the situation as Òdouble jeopardyÓ.
ÒWhat we are proposing to do is spend £3.5m to avoid fines of up to £10m,Ó he said.
Hampshire County CouncilÕs cabinet will meet on February 10 to finalise the budget for 2003/04.