Hampshire County Council: Independent Panel to Suggest Cash Savings
Hampshire County Council seeks an independent panel’s help to save £20m amid budget challenges and rising costs in social care.
Hampshire, Council, Budget, Savings, Social Care, Government
Hampshire: The county council is facing a budget deficit. They need to save £20 million over the next few years. An independent panel is stepping in to help with this challenge.
The council has asked the government for exceptional financial support for 2025/26. This could allow them to raise council tax by 15%, which is above the usual 5% limit.
It’s still unclear if the government will grant this support. The council is focused on closing a £97.6 million budget gap by 2025/26.
Last year, the council made some cuts, like reducing street lighting and charging for rural parking. However, these savings alone won’t close the budget gap.
Increased costs in adult and children’s social care, school transport, and inflation are putting pressure on the budget. A disappointing Local Government Finance Settlement only added £3.1 million to their funds.
Given the financial situation, the council is reviewing all services to find more savings. An independent panel, led by Rob Whiteman, is helping with this review.
The panel’s report will be included in the budget report in February 2025. Early feedback suggests the council has reached a tipping point in finding new savings.
Council leader Nick Adams-King was initially skeptical about the panel. However, he now believes they have done an excellent job providing ideas and suggestions.
This summer, council officers worked on focusing services on their core purpose. They reviewed 177 service lines to improve efficiency.
The panel found that the council is well-run and has consistently delivered savings. However, they warn that finding new savings to balance the budget is becoming increasingly difficult.
Despite ongoing efforts, the council is exploring potential Phase 3 savings based on the panel’s feedback. Questions arose about the panel’s cost, which is expected to be around £80,000.
Adams-King believes this cost is justified, given the potential savings identified by the panel. Rob Carr, director of corporate operations, called the panel a proactive step, noting that government commissioners would have cost much more.