Portsmouth council backs 4.99% tax rise after clash over Reform UK plans

The council has now approved its budget for the 2026/27 financial year, which begins on 1 April.

For that year, the authority has forecast additional spending of £16.2m, largely driven by sustained demand in adult and children’s social care, alongside inflationary pressures and special educational needs provision.

Looking further ahead, the council is projecting a £3m deficit by 2029/30, meaning savings of £1m per year will be required from 2027/28. Forecasts, it cautions, can fluctuate by plus or minus £2m annually.

To bridge next year’s gap, the council plans to deliver £3m in savings, implement a 4.99 per cent rise in council tax and rely on around £10.3m in government funding.

Council leader Councillor Steve Pitt said he was able to present a budget that “yet again balances the books” in order to safeguard both the authority’s finances and frontline services.

He also voiced concern over Local Government Reorganisation (LGR), which could see Portsmouth merged with neighbouring authorities in Gosport, Fareham and Havant from April 2028.

He said that, should the city be combined with those councils, the new authority could face required savings of £67m from day one, reflecting existing deficits at Hampshire County Council.

“Every day I am reminded of what is at risk. Our libraries, our museums, our community wardens, the maintenance of our parks, our events programme, our greening work, the future ownership of Portsmouth International Port, our port.

“The frequency of rubbish collections and something that will be hugely important to our residents, the maintenance of our roads.”

Amendments

Political groups were given the opportunity to table amendments to the cabinet’s proposed budget ahead of the final vote.

Councillor Joe Standen, leader of the Reform UK group and leader of the opposition, proposed reducing the council tax increase to 3.49 per cent, in line with inflation.

He suggested funding the change by scrapping the civic futures fund, set up to explore the potential replacement or redevelopment of the council’s civic offices , which has around £1.8m allocated.

He proposed using £1.6m to reduce the council tax rise, with the remaining funds directed towards community centres and a veteran’s hardship fund.

However, the council’s director of finance and resources, Chris Ward, “strongly advised” members to reject the amendment, stating it had “no regard” for future financial implications and “therefore the future sustainability of council services”.

He warned the plans would widen the budget gap by £1.9m by 2029/30 and said no proposals had been set out to address the additional shortfall.

He also noted the cumulative loss of council tax income would reach £6.9m over the same period. If approved, he said, this would reduce central government funding allocations, which are done on the assumption that the full 4.99 per cent rise is applied.

Councillor Jason Fazackarley defended the amendment, branding the civic futures fund a “dead duck” given the possibility the council may not exist in its current form after 2028 due to LGR.

He also criticised the logic of setting budgets for future years under such uncertainty.

Labour councillor Graham Heaney criticised the proposal, saying: “this is not a game we’re playing here, people’s jobs, people’s services are at the heart of this”.

“The Reform budget plays fast and loose with our financial future.”

The council leader said he had never before seen comments from the director of finance as “damming” as those issued on Reform’s amendment.

He also reminded members that former councillors from the Portsmouth Independent Party, who have not since defected to Reform, had supported council tax rises in previous years, a stance he said had now shifted “because Nige said so”.

“We cannot accept nonsense, childish politics with budgets.”

Reform’s amendment was defeated, with nine votes in favour, 28 against and four abstentions.

Meanwhile, Councillor Charlotte Gerada, leader of the Labour group, secured backing for her amendment to allocate additional funding for accessible play equipment.

Her proposals also included deployable CCTV monitors in Charles Dickens, a raised zebra crossing for Lawrence Road and traffic calming measures on Highbury Grove.

The Conservative group also won support for its amendment, tabled by group leader Simon Bosher, to refurbish Anchorage Lodge Community Centre.

He further proposed installing bollards to prevent vehicle access at Canoe Lake, as well as repairing and fitting security shutters at Drayton Park.

More information on the budget is available in the full council meeting agenda.