Hampshire County Council leader says there are ‘no easy choices’ over £139m funding gap

Hampshire County Council faces “no easy choices” as it tries to deal with a projected £138.6m funding gap, its leader has said.

The leader of the county council, Cllr Nick Adams-King said it would be “misleading” to suggest the council could continue making savings without residents noticing the impact.

His comments came after the Unison union published analysis showing Hampshire has the largest projected funding gap among councils included in its research for 2027/28.

The union estimates Hampshire will face a £138.6m shortfall next year, followed by Shropshire Council (£123m) and Haringey London Borough Council (£113.9m).

A funding gap is the difference between how much a council expects to spend on services and the money it expects to receive.

Cllr Adams-King said Hampshire was under increasing pressure as demand for services continued to grow.

He said: “The cost of delivering services is rising, while demand continues to grow – particularly in adult social care, children’s services and support for children with special educational needs and disabilities. Funding has not kept pace with those pressures.”

He added the council would continue looking for savings and press the government for a fairer funding settlement.

Cllr Adams-King said: “We will continue to manage taxpayers’ money responsibly, pursue efficiencies and press the government for a fair and sustainable funding settlement.

“But after many years of savings, it would be misleading to suggest that further reductions can always be made without residents noticing the consequences.

“Our priority will be to protect the most vulnerable and preserve essential services wherever possible.

“We will examine every option carefully before making decisions, but there are no easy choices when the gap between the cost of providing services and the funding available is so substantial.”

Although Hampshire was “a well-run authority”, Cllr Adams-King argued that councils across the country needed “adequate, predictable, long-term funding” from the government.

A Hampshire County Council spokesperson said the authority had previously forecast a £179.7m budget gap for 2027/28, driven by rising demand for SEND support and adult social care.

They said the council had saved more than £730m over the past decade by becoming more efficient, but warned that rising costs and demand meant further savings were becoming increasingly difficult.

The spokesperson said: “We continue to do all we can to keep finding savings and efficiencies ourselves – but there is also a clear need for fairer funding and action from Government to address the growing wider pressures in SEND and the need for adult social care reform.

“This autumn, we will publish our Medium Term Financial Strategy which will update our forecast position for 2027/28; we will also be consulting residents on ways to help balance the budget in the financial year ahead while protecting essential services.”