Fareham confirms maximum council tax increase as budget agreed

The Conservative-run administration has set out a £32.7 million five-year capital programme, covering the period from 2025/26 to 2029/30, alongside a 2.99 per cent increase in council tax.

Following the decision at a full council meeting, the borough council’s share of council tax for a Band D property will rise to £197.14, an increase of £5.72 compared with the current year.

Council leader Cllr Simon Martin said the authority continues to have one of the lowest council tax rates among councils likely to form a future unitary authority following local government reorganisation.

He said the increase equates to around 11p per week for a Band D household.

Cllr Martin said: “Our council tax continues to remain one of the lowest Band D charges in the country. That is a significant achievement and demonstrates our prudent financial management and careful investment.”

He said the council had delivered on its commitments over the past year while continuing to provide value for money.

“We deliver what we say we are going to do. The services the council is required to deliver are provided to an outstanding standard. We are a responsive council and we work hard for our residents, giving them value for money.”

Cllr Martin also pointed to a successful peer review challenge, which praised the way the council is run. He said the authority had continued to improve services over the past year, including upgrading the council’s website.

Despite concerns raised last year about the council’s medium-term finances, Cllr Martin said the authority is expected to finish the current financial year broadly on budget.

A potential overspend remains possible, but the council has set aside up to £56,000 from reserves if needed.

Last year the council predicted a £1.3 million revenue shortfall for 2026/27, with a similar gap forecast for 2027/28. However, the authority has now managed to set a balanced budget for next year, with a significantly reduced shortfall in later years.

Cllr Martin said this had been achieved through “prudent financial management” and improved income from council assets.

While the council will still need to manage spending carefully, he said major projects – including the town centre regeneration programme – remain a priority, with much of the funding coming from council land sales.

For 2026/27, the council plans to spend £47.9 million running its 57 services. Around £35.8 million will be generated through income, leaving a net cost of £12.06 million.

The council’s five-year capital programme, valued at just under £33 million, includes projects such as the continued development of Daedalus and regeneration work in the town centre. The programme will be funded through receipts, grants, reserves, revenue and borrowing.

Cllr Martin said the budget had been set without reducing services or their quality, which he described as a key priority for residents.

“This is an excellent budget for the residents of Fareham,” he added. “It ensures services are maintained while allowing continued investment in regeneration, housing and environmental programmes.

“It demonstrates how a well-run local authority should operate – by controlling its capital programme, maintaining balanced revenue budgets and delivering services effectively through dedicated staff.”

The Liberal Democrat group supported the budget.

Its leader, Cllr David Hamilton, said: “This budget is balanced and that stability matters, particularly in a period of transition. Officers deserve real credit for the work that has gone into achieving that.”

However, he warned that council tax increases had become routine.

“Residents are again being asked to pay the maximum council tax increase allowed without a referendum,” he said. “Applied year after year, those increases add up, and the reality is Fareham is no longer a notably low-tax area compared with our neighbours.”