Finance

Budget and council tax in summary

Modern, high quality and affordable services

Over the past twelve months, Hampshire County Council has responded to the challenge of reduced government funding with an ambitious programme of savings and modernisation. We have kept down day-to-day running costs, merged departments and cut one in four senior manager posts. These efficiencies have allowed us to protect frontline services for those who need them most. Residents will also benefit from our decision to freeze our part of the Council Tax again, keeping it at the same level for the third year running.

Managing Hampshire’s finances wisely

The Government is continuing to cut funding for councils. Our general government funding will reduce by 10.4 per cent in 2012/13. This is the joint highest percentage cut for any English county council.

We already receive a low amount of government funding per person, compared to many other councils. Apart from services funded by specific grants, fees and charges, general government funding provides only £25 of every £100 needed to provide all our other services, so the rest has to come from Council Tax.

Financial pressures from government funding cuts are increased further by inflation and increasing demand for services, such as care for the elderly.

Budget breakdown

We expect to spend £1,752 million on services in 2012/13, compared with the original budget of £1,913 million in 2011/12. Part of this reduction is due to our savings programme but £105 million relates to transfers of budgets to schools converting to Academy status. To help with this cost, we get service-related grants from the Government, including a grant to cover the full cost of Hampshire schools, and we receive £168 million in income mainly from fees and charges. Allowing for these grants and income, we have set a net spending budget of £712 million. Council Tax will fund £530 million of this. There will be no increase in the County Council’s portion of the Council Tax in 2012/13. It will be frozen again, funded by a one-off government grant.

If you have any questions about the content of these pages please contact the County Treasurer's Department.