HAMPSHIRE County Council has vowed to continue its fight for a "fair deal" following fears that changes in government grant distribution could result in rocketing council tax bills. The Tory-controlled council said the proposed redistribution of central government funding away from the so called "affluent south" to the urban areas of the north and Midlands, could result in a potential loss of between £9 and £37 million for Hampshire - figures which could transfer into a two to nine per cent hike in council tax over the next few years. A government consultation paper was issued by the Office of the Deputy Prime Minister in July and deals with the methodology for calculating Formula Spending Shares (FSSs) which are the measures of local authorities' need to spend. It will determine the amount of government revenue support grant distributed to local authorities, and significantly impacts on the amount of local council tax required. Ken Thornber, leader of Hampshire County Council, said he was determined to fight the proposed changes. "The government is proposing to alter the way it calculates how much each local authority is to be given to provide services and it will be very difficult to see the link between our service needs and their grant," he said. "Hampshire County Council seeks a system that is more progressive and fair. We can no longer afford large increases in council tax, and if the government insists on moving grant money away from the South East to other areas of the country - and it is difficult not to conclude that these proposals are a deliberate attempt to do this - we cannot see how council tax can be sustainable. "We acknowledge that there are areas in the country where there is more need than resource, but we strongly believe that this should be tackled by adding extra money to the system, not by taking grant away from areas such as Hampshire." "This is a re-run of what the government did for the 2003/2004 budget when they removed grant from Hampshire to increase funding in the north and Midlands. Then, as now, we fought on for a fair deal for Hampshire residents with our 'Hands Off Hampshire' campaign." Hampshire County Council is preparing to make its views on the consultation paper known, not just to the government, but also to the MPs who represent Hampshire and to associations of local authorities. "We will continue to lobby to ensure the people of Hampshire get sufficient grant for the services they need," said Mr Thornber. "The council tax burden is becoming unaffordable, especially to those people on low or fixed incomes. By proposing to take more grant away, the government is imposing a further stealth tax on Hampshire residents who will know where the blame lies."
