Fareham slaps residents with 2.99pc council tax hike as it faces 'unclear' future
People in Fareham will see their council tax bills for the borough rise by the maximum amount from April.
A Fareham Borough Council policy and resources scrutiny panel recommended that the executive presses ahead with its budget for 2025/26 and raise council tax by 2.99 per cent.
The council presented a balanced budget and did not have to draw down on council funds called reserves, council officer Neil Wood told the meeting.
It is, however, proposing to increase its council tax by the maximum of 2.99 per cent allowed by the government to cover front-line council services to residents.
To deliver a balanced budget, as it is legally required to, a report said it needed to raise £8,536,643 through council tax. This represents about 15 per cent of the gross revenue budget for the council for 2025/26 of £57.4million.
This means an increase of £5.56 from £185.86 to £191.42 for band D taxpayers of council tax affecting 10,868 households.
For band C taxpayers, there will be an increase of £4.94 from £165.21 to £170.15, affecting 15,698 homes.
Members were told the local council tax support (LCTS) scheme for 2025/26 remained unchanged from 2024/25 – a benefit scheme for working-age and pension-age residents. Officers added they were looking at how the scheme could be administered easier for the 3,629 households receiving council tax support in the borough – costing £4,268,843.
The report also said that while the overall economic situation appears to have stabilised, the overall position for councils remains unclear. It also said the impact of changes announced in the budget, such as increases in how much National Insurance employers pay, are yet to be felt.
The National Insurance contribution the council must pay is now only being partly funded by the government – with only a 49 per cent contribution of £155,000 to cover the cost.
The officer also reported that the government is increasing planning fees to homeowners, which will create an estimated £100,000 for council coffers.
The budget proposal went before the executive on Thursday (February 13) before full council is set to discuss and approve it on Friday (February 14).
Council tax bills are finalised once the amounts needing to be paid by households to the county council, police and fire and also agreed.