THE government is being asked by the county council to cough up extra cash to prevent another hike in next yearÕs council tax.
As previously reported by The Herald, Hampshire County Council is fearing that it will have to increase its share of the annual bill by around seven per cent - more than twice the rate of inflation - to maintain its existing services without making any real improvements.
It blames an effective reduction in its funding grant from central government which, it says, is forcing it to raise the precept to make up the shortfall.
The amount of its total budget increase needed for the council to Òstand stillÓ next year is 4.5 per cent, or another £46 million over its existing £1.032 billion budget.
This is mainly as a result of having to meet national requirements for a minimum increase for schoolsÕ budgets and meeting increased costs and pressures on social services and waste management.
However, the estimated increase in government grant is only 3.5 per cent of the budget, meaning the countyÕs residents will have to make up the shortfall.
But this week the councilÕs cabinet agreed to make a new plea to the government to Òaccept its responsibilityÓ for the likely increase and dig deep in its pockets to prevent it from happening.
The cabinet, which met on Tuesday, also expressed its dismay at the governmentÕs lack of action to assist those pensioners, families and individuals finding it increasingly difficult to meet future council tax rises.
The average bill in East Hampshire for this current financial year is £1,096.51.
Next year the projected council tax rise is an average £1.10 per week for an average band D property - half the increase in the basic state pension.
County council leader Ken Thornber said: ÒHampshire council tax payers are already subsidising services for other areas after the government took £21 million grant away from us this year and redistributed it to urban councils in the North and Midlands, with a further £14 million to follow next year and £13 million the year after.
ÒTaking money from those who already face higher costs of living, and on whom taxation falls disproportionately, is not acceptable or sustainable and this trend must be stopped.Ó
The county council is hoping to pursuade the government that Hampshire should not be forced to pick up the bill from the budget deficit and that the government should instead increase its share of the councilÕs funding.
Mr Thornber said: ÒPeople cannot afford to pay such increases year on year.
ÒItÕs quite clear that the government needs to reverse the grant changes so that the council tax rises can be kept down for all taxpayers, as well as the government accepting its responsibility to assist those pensioners who find it increasingly difficult to meet the council tax rises.Ó
The county council will continue to consult widely on possible budget and council tax rises for next year.
Mr Thornber has been exploring what further support in discounted council tax might be possible for pensioners.
Under new laws, district councils will be able to give discounts to pensioners from April 1 next year but the loss in council tax revenue resulting from the discounts must be met by district councils.
ÒIf the government will not fund it, then I would not ask the district councils or the people of Hampshire to fund it, but I owe it to the people of Hampshire to explore every option.
ÒThat might enable me to find a way to help. After government refusal and their attempting to shift the cost onto district councils I am not hopeful.Ó




