Portsmouth council tax: Authority plans to increase rates by maximum to close multimillion-pound financial black hole

COUNCIL tax in Portsmouth will be increased by the maximum allowed this year as part of budget plans to close a multimillion-pound funding blackhole.

Documents published on Monday confirm the move first revealed by city council leader Gerald Vernon-Jackson in December while showing a proposed hike to car parking fees and a new charge for replacing black bins.

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Cllr Vernon-Jackson said it had been a ‘difficult’ decision to hike council tax by 4.99 per cent but said this would help balance the council’s books, raising an extra £4.5m a year by adding an extra £60 a year to the bill for a Band B home.

Both the police and fire service are expected to also increase their council tax precepts for the new financial year in April.

‘The council is affected by the cost of living crisis like everyone else,’ he said. ‘Things like rising inflation and energy costs mean the things we do are going to cost us more money.’

He added that the ‘disastrous’ mini budget announced under former prime minister Liz Truss had added to these pressures as had the ongoing £6m-a-year cost of maintaining the mothballed border control post at the port.

‘We have had to cut £106m from our budget, which is now just £157m, over the last 12 years,’ he said. ‘I had hoped that last year was the last year we would need to make cuts but the Ukraine war and the mini budget have left us facing economic turmoil.’

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Cabinet members have drawn-up measures to save £2m of the £24m funding shortfall for the coming year’s budget, including:

A £20,000 reduction in subsidies for the Music Hub, a new £15 charge for replacement black bins. No charge is planned for replacement green bins, the scrapping of £20,000 funding to the Hive increases to parking charges in all district centres, on-street in the city centre and along the seafront, and the introduction of winter parking charges at Canoe Lake and along Eastney Esplanade.

The remaining money has come through an £8m ringfenced government grant for social care, the use of £2m in Covid funds, an increase council tax base, and the proceeds of the inflation-linked increase in business rates.

Finance director Chris Ward said the measures meant the council did not need to use any of its reserves this year, despite the pressure it was under.

The draft budget also includes £4m to progress its plans for the City Centre North project, £100,000 for new low traffic neighbourhoods and £70,000 measures to prevent travellers’ access to sites across the city.

More than £13m is also included for the planned new anaerobic digestion facility as is £5.5m towards new shore power at the port. Almost £6m has been set aside for the replacement of the Mountbatten Centre roof, with inflation adding £1.8m to the cost of the project.

The draft budget will be discussed by the council’s cabinet when it meets on Tuesday (February 21) before the full council meeting at the end of the month (February 28) at which the budget will be agreed.