Council to hike council tax by maximum amount after Government's 'disappointing and sneaky' move

Fareham Borough Council looks set to increase its council tax by the maximum allowed.

The council is working on its budgets for 2026/27 and is potentially setting the council tax at 2.99 per cent, the maximum allowed to charge residents without a referendum.

The revised 2025/26 general fund revenue budget amounts to £15,282,400, and the base 2026/27 general fund revenue budget will be £16,327,500.

Cllr Fred Birkett and Cllr Joanne Burton meeting of Fareham Borough Council's executive, January 7placeholder image
Cllr Fred Birkett and Cllr Joanne Burton meeting of Fareham Borough Council's executive, January 7 | LDRS

The draft budgets were agreed by the executive at Fareham Borough Council on January 7, but councillors said they “felt boxed in” because of cuts in funding from the government.

Members heard that despite this, the council had managed to set a balanced budget for 2026/27 and only needed to transfer £56,000 from its reserves to balance the current year’s budget.

Councillor Ian Bastable said: “Because of the funding arrangements from the government, we have no leeway, no democratic control over this. We will exert control where we do have to make savings and spend money where appropriate.

“The council tax increase that was included in this planning was absolutely essential to set a balanced budget, and I am sure that was the government’s intention.”

Councillor Fred Birkett said: “It’s disappointing that the government settlement is less than we hoped for. It is a sneaky act from the government in the way they are going about things. Increasing the cost on our residents that we do not want to do.”

He said a final decision on the council tax precept will be made at a future full council meeting, but “as a prudent and right-thinking council,” it is included in the budget.

Cllr Bastable added: “Some figures will change and the funding from the government will also be confirmed by then.”

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