Hampshire County Council's financial troubles 'not of our doing' says council leader

Hampshire County Council is facing an unprecedented budget shortfall of £200m by 2025/26, coming after £80m was slashed from the budget this year.

But with government funding continuing to fall, council officers and even leading Conservatives say Westminster is to blame for its troubles.

At yesterday's cabinet meeting Rob Carr, director of corporate operations, said: ‘We have a bit of a perfect storm at the moment, with rising costs in social care, hyper-inflation and reduced funding from central government.

‘That £200m deficit figure has been calculated before the impact of the imminent social care reforms too - it’s a situation that’s out of our hands.

‘We are considering whether we are actually able to close the financial gap, and what the government can do to help. We are lobbying MPs and I am having discussions with government officials about the position we are in.’

A report provided to the cabinet outlined concerns that adult health and social care costs are increasing ‘at a faster rate’ than central government can provide funding for.

Further financial strain has been placed on children's services and highways - the latter being subjected to inflationary pressures on construction materials.

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Leader of Hampshire County Council, Councillor Rob Humby, said: ‘We are in a position where we're already looking at 2025/26.

‘This isn't of our doing but it's still the position we find ourselves in.’

Executive lead member for transport and environment strategy, Cllr Edward Heron, added: ‘We are confined and constrained by the funding model, and the only thing we have control over is the budget.

‘It cannot continue this way.’

But despite the financial troubles, the belief at the county council is that they are in a better position than many other authorities up and down the country.

This, councillors say, is down to early planning and making budget cuts sooner rather than later.

Cllr Heron said: ‘The earlier we can make a saving, the more we have in reserves and greater flexibility going forward.

‘We have to act as fast as we can, but it does worry me that we cannot wait to see if solutions will come from the government.’