Finance

Quality Services at Lowest Cost: Hampshire County Council’s 2013/14 Budget and Council Tax

Hampshire County Council will freeze its part of council tax again this year, keeping it at the same level for the fourth year running. It will remain one of the lowest county council taxes in England.

The council tax freeze has been possible because we took early and decisive action to respond to the substantial cuts to our general Government funding.

The Council has already achieved savings of £100 million over the last two years and we will continue to make more efficiencies, including savings of 2% this year across all of our departments. This will keep the Council in a strong position to continue to protect frontline services and manage future Government funding cuts, expected to be even tougher after 2015/16.

Our prompt financial action means that we can remain focused on providing high quality services. We are increasing funding this year for social care and child protection because we want to make sure that the vulnerable are protected and meet higher demand for these services. Promoting economic growth is another priority, such as through providing new infrastructure.

This information is about the Hampshire County Council element of council tax. Your council tax bill also includes amounts for the Police and Crime Commissioner for Hampshire, Hampshire Fire and Rescue Authority, your local district or borough council and, in many areas, a parish or town council.

What the budget will be spent on in 2013/14

  • Children's services (including schools): £982.4m
  • Adult social care: £435.7m
  • Highways, transport, planning and waste: £133.2m
  • Culture, communities and other services: £125.8m
  • Future inflation, contingencies and reserves: £69.8m
  • Borrowing costs: £67.1m
  • Capital costs paid from revenue: £23.6m

How the budget is funded

2012/13

2013/14

Gross expenditure (1)

£1,751.7m

£1,837.6m

Funded by:

Income

£167.6m

£249.7m

Reserves

£34.7m

£39.0m

Specific Government grants (2)

£837.8m

£793.1m

Subtotal: Net budget requirement

£711.6m

£755.8m

General Government grants (2)

£3.4m

£221.1m

Business rates (2)

£173.9m

£42.0m

Surplus on collection funds

£4.2m

£2.6m

Council tax requirement (3)

£530.1m

£490.1m

Results in:

Hampshire County Council’s Band D Council Tax

£1,037.88

£1,037.88

(1) The increase in expenditure is due to the Government transferring duties to Hampshire County Council, such as public health.

(2) The substantial changes to the amounts we receive from Government grants and business rates result from major alterations to the local government funding system. On a like-for-like basis, our general Government formula grant has been cut by 8.7%.

(3) Council tax has been frozen but the total amount we will receive from it will reduce in 2013/14 as a result of Government changes to the council tax benefit system.

Changes to the net budget between 2012/13 and 2013/14

2012/13 net budget requirement

£711.6m

Funding and function changes

£64.7m

Inflation

£14.6m

Reduction in council tax freeze grant

-£7.9m

Reduction in contingencies

-£17.8m

2% efficiency savings

-£9.4m

2013/14 net budget requirement

£755.8m